Session 10 Environment

Environment
Marketing Strategies
What environmental factors lead to this campaign?
Important Sources of Secondary Data in South

Asia
Statistical Outline of India
Centre for Monitoring Indian Economy (CMIE)
The Marketing Whitebook
Readership Surveys
National Council of Applied Economic Research (NCAER)
Indian Trade Statistics
Copyright 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
Important Sources of Secondary Data in South

Asia
Web sites such as magindia.com and agencyfaqs.com
Euromonitor International
Statistics Division of the Government of Pakistan (http://www.statpak.gov.pk)
The Bangladesh Bureau of Statistics (http://www.bbs.gov.bd)
The Department of Census and Statistics, Sri Lanka

(http://www.statistics.gov.lk)
Lifebuoy : Swasthya Chetna
World Health Organisation, diarrhoea is the largest single cause of

preventable death, killing 2.2 million people every year. In 2003, it killed
600 000 children aged under five in India alone.
Lifebuoy Swasthya Chetna the biggest rural health and hygiene education
project ever carried out in India has already helped around 70 million
people in 18 000 villages become more aware of basic hygiene and the
importance of hand-washing at critical points in the day with good germ
protection soap. The five-year campaign aims to educate a total of 200
million people - 20% of the population.
Population and Demographics

Population
growth
Population
age mix
Ethnic
and other markets
Educational
Household
groups
patterns
Economic Environment
Consumer Psychology
Income Distribution
Income, Savings, Debt, Credit
Income Distribution
Subsistence
economies
Raw-material-exporting economies
Industrializing economies
Industrial economies
Income Distribution in India
Sociocultural Environment
Views of themselves
Views of others
Views of organizations
Views of society
Views of nature
Views of the universe
Other Cultural Factors in Marketing
Core beliefs: hard to change

Secondary beliefs: easier to change
Existence of subcultures
Natural Environment
Keys to Avoiding
Green Marketing Myopia
Consumer Value Positioning
Calibration of Consumer Knowledge
Credibility of Product Claims
Consumer Environmental Segments
Genuine Greens
Not Me Greens
Go-with-the-Flow Greens
Dream Greens
Business First Greens
Mean Greens
Technological Environment
Accelerating Pace of change
Opportunities for innovation
Varying R&D budgets
Increased regulation of change
The Political-Legal Environment

Business Legislation
Growth of Special Interest
Groups
Government Agencies
Islamic Banking: Reflecting Religious and

Cultural Sensitivities
Consistent with principles of Islamic Laws
(Shariah)
Prohibits investing in business that are
considered unlawful
Growth is due to disenchantment with valueneutral capitalist and socialist financial
systems
Popular in Pakistan and Bangladesh,
National and international banks want to start
Islamic banking in India
Copyright
2009 Dorling
Kindersley
(India) Pvt.
Ltd.
3-17
Toyota Experienced Success

with Green Cars
Copyright
2009 Dorling
Kindersley
(India) Pvt.
Ltd.
3-18
Demographic
Company
Economic
Social
Publics
Suppliers
Company
Competitors
Customers
Natural
Political
Intermediaries
PEST
Technological
The Marketing Environment
The Microenvironment
Company
Publics
Forces Affecting a
Companys Ability to
Serve
Customers
Competitors
Suppliers
Intermediaries
Customers
The Companys
Microenvironment
Companys Internal Environment- functional areas

such as top management, finance, and
manufacturing, etc.
Suppliers - provide the resources needed to

produce goods and services.
Marketing Intermediaries - help the company to

promote, sell, and distribute its goods to final
buyers.
The Companys
Microenvironment
Customers
- five types of markets that

purchase a companys goods and services.
Competitors
- those who serve a target

market with similar products and services.
Publics
- any group that perceives itself

having an interest in a companys ability to
achieve its objectives.
Customer Markets
International
Markets
Consumer
Markets
Company
Government
Markets
Business
Markets
Reseller
Markets
The Macroenvironment
Demographic
Social
Political
Forces that Shape

Opportunities
and Pose Threats
to a Company
Economic
Natural
Technological
The Companys
Macroenvironment
Demographic
- monitors population in
terms of age, sex, race, occupation,
location and other statistics.
Economic
- factors that affect consumer

buying power and patterns.
Natural
- natural resources needed as

inputs by marketers or that are affected by
marketing activities.
Key U.S. Demographic Trends

Changing Age Structure
Population is getting older

Changing Family Structure
Marrying later, fewer children,

working women, and nonfamily households
Geographic Shifts
Moving to the Sunbelt and suburbs (MSAs)

Increased Education
Increased college attendance

and white-collar workers
Growing Ethnic and Racial Diversity
73% Caucasian, 12% African-American,

10% Hispanic & 3.4% Asian
Economic
Development
Key
Economic
Concerns for
Marketers
Changes
in Consumer
Spending
Patterns
Changes
in Income
Natural Environment
More Government
Intervention
Higher Pollution
Levels
Factors
Affecting
the
Natural
Environment
Increased Costs
of Energy
Shortages of
Raw Material
The Companys
Macroenvironment
Technological
- forces that create new

product and market opportunities.
Political
- laws, agencies and groups that

influence or limit marketing actions.
Social
- forces that affect a societys

basic values, perceptions, preferences,
and behaviors.
Rapid Pace of
Change
High R & D
Budgets
Issues in the Technological

Environment
Focus on Minor
Improvements
Increased
Regulation
Political Environment
Increased
Legislation
Key
Trends in the
Political
Environment
Greater
Concern for
Ethics
Changing
Enforcement
Cultural Environment
Of
Oneself
Of
the Universe
Of
Nature
Views
That Express
Values
Of
Society
Of
Others
Of
Organizations
Environmental
Management Perspective
Taking a proactive approach to
managing the microenvironment and
the macroenvironment to affect
changes that are favorable for the
company. How? Hire lobbyists , run
advertorials, file law suits and
complaints, and form agreements.
Marketing Environment
All the actors and forces influencing the companys ability to transact
business effectively with its target market.
Includes:
Microenvironment
- forces close to the

company that affect its ability to serve its
customers.
Macroenvironment - larger societal forces
that affect the whole microenvironment.
Environmental Forces
Demographic
Political-Legal
Economic
Technological
Socio-Cultural
Natural
3-36
Copyright
2009 Pearson Education,
Inc. Publishing as Prentice Hall
Population and Demographics
Population growth
Educational groups
Population age mix
Household patterns
Ethnic markets
Geographical shifts
3-37
Copyright
Household Patterns
3-38
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall
Income Distribution
Savings, Debt, and Credit
Levis has responded to changes in

income distribution by offering an
upscale line and a mass market
line
3-39
Copyright
Natural Environment
Shortage of
raw materials
Increased
energy costs
Anti-pollution
pressures
Governmental
protections
3-40
Copyright
Pace of change
Opportunities
for innovation
Varying R&D
budgets
Increased regulation
of change
3-41
Copyright
Political-Legal Environment
Increase in
business legislation
Growth of special
interest groups
3-42
Copyright

Session 10 Environment

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Environment

What environmental factors lead to this campaign?

Important Sources of Secondary Data in South

Statistical Outline of India

Centre for Monitoring Indian Economy (CMIE)

The Marketing Whitebook

National Council of Applied Economic Research (NCAER)

Indian Trade Statistics

Important Sources of Secondary Data in South

Web sites such as magindia.com and agencyfaqs.com

Statistics Division of the Government of Pakistan (http://www.statpak.gov.pk)

The Bangladesh Bureau of Statistics (http://www.bbs.gov.bd)

The Department of Census and Statistics, Sri Lanka

Lifebuoy : Swasthya Chetna

World Health Organisation, diarrhoea is the largest single cause of

Population and Demographics

and other markets

Income Distribution in India

Views of the universe

Other Cultural Factors in Marketing

Core beliefs: hard to change

Consumer Value Positioning

Calibration of Consumer Knowledge

Credibility of Product Claims

Consumer Environmental Segments

Business First Greens

Accelerating Pace of change

Opportunities for innovation

Varying R&D budgets

Increased regulation of change

The Political-Legal Environment

Islamic Banking: Reflecting Religious and

Toyota Experienced Success

The Marketing Environment

Companys Internal Environment- functional areas

Suppliers - provide the resources needed to

Marketing Intermediaries - help the company to

- five types of markets that

- those who serve a target

- any group that perceives itself

Forces that Shape

- factors that affect consumer

- natural resources needed as

Key U.S. Demographic Trends

Population is getting older

Marrying later, fewer children,

Moving to the Sunbelt and suburbs (MSAs)

Increased college attendance

73% Caucasian, 12% African-American,

- forces that create new

- laws, agencies and groups that

- forces that affect a societys

Issues in the Technological

- forces close to the

Population and Demographics

Population age mix

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Savings, Debt, and Credit

Levis has responded to changes in

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