Actors and Forces outside marketing that affect marketing managements ability to develop and maintain successful transactions

with its target customers. The environment provides full of opportunities as well as periodical threats that may arise due to competition or their own need for refinement in strategies.

Their strategies , structure of operations, reporting patterns, systems and culture may be possibly outdated. The marketing executives of the organization needs to be an opportunity seeker and trend tracker. The Marketers needs to gather Market Intelligence and browse the market for available and new information.

Marketing Executives spend more time with the customers in the market and in the Environment. By conducting systematic environmental scanning, markets are able to refine their strategies to suit the market thereby meet newer challenges and opportunities that arise from time to time.

ME consists of

Microenvironment

The forces close to the company that affect its ability to serve its customers the company, market channel firms, customer markets, competitors, and the publics. Macroenvironment The larger societal forces that affect the whole microenvironment demographic, economic, technological, political and cultural forces.

The Job of MM is to attract and build relationships with customers by creating customer value and satisfaction. This success depends both on internal and external factors Internal company support to the ME, support from service team, support from Marketing Intermediaries or channels etc.,

External

Other companies, customers, competitors and various publics. The Companys Microenvironment In designing marketing plan,s MM takes the confidence and concurrence of other company groups of the organization namely A, Top Management b, Finance c, R&D d, Purchasing e, Manufacturing & f, Accounting.

Suppliers

:: An important link in the companys overall Value Delivery System..

Supplier

issues can alter the equilibrium of demand and supply in the market. Also Labor unrest, general strike and sudden rise in demand can alter the balance and suppliers ensure support in maintaining stability in these areas.

Marketing Intermediaries ::-- Helps the company to promote, sell and distributes its goods to final buyers. They include Resellers, physical distribution firms, Market services agencies, and financial intermediaries.

Resellers

- eg., Pharma distributors, Tyres wholesalers, Service centres, Bank Intermediaries like marketing or commission agents etc., Physical Distribution Firms -- C& F agents, Super stockists), etc., Marketing Service Agencies Advertising Agencies, Market Research Firms, Media Firms etc.,

Financial Intermediaries :: Banks, Credit companies, Insurance Companies etc., Customers :: The company needs to study its customer markets closely. 5 types of customer markets are available. Consumer markets Individuals and housholds that buy goods and services for personal consumption.

Business Markets - Buys goods and services for further processing or using these for further production process. Eg., companies buying ancillaries for manu. Process. Reseller Market Buys goods and services to resell at a profit. Eg., Any wholesale or a Retail shop of any industry.

Government Markets - Government markets are made up of govt. agencies that buy goods and services in order to produce public services or transfer the goods and services to others who need them. International Markets Buyers from other countries, including consumers, producers, resellers, and governments.

Competitors For a company to be successful, it must provide greater customer value and satisfaction than its competitors. Marketers must ensure that they gain strategic advantage by positioning their offers strongly against the competitors offerings in the minds of the customer. Large firms develop unique strategies which smaller firms cannot afford.

Smaller firms can develop strategies that give them better rates of return than large firms enjoy. Publics A Public is any group (for eg., shareholder, stockholder, investment house, banks etc.) that has an actual or potential interest in or impact on an orgn. Ability to achieve its objectives.

Financial Publics Banks, Investment houses, stock holders etc., Media Publics Newspaper, magazines, Radio, TV, Internet , etc., Government Publics - A company management have to take due note of the developments in the government admn. And policies and also ensure safety and legal compliance of the firm in the society

Citizen-action Pu blic:: A companies activities or marketing decision may be questioned by consumer orgn., environmental groups, minority groups and others. Local Public Local residents who have a direct impact on the existence of the company in their territory. Need to address public concerns and grievances appropriately.

General Public -- Its attitude towards the companys products and services and their brand image with the public. Internal Public -- Board of Directors, workers, managers, volunteers etc.,

Demographic Environment Study of human population in terms of size, density, location, age, gender, race, occupation and other statistics. This study interests marketers, as this makes people who in turn make up the markets.

The different trends in the society, population boom, Structure of the population, change in age and family structures, geographic population shifts, educational characteristics and population diversity , change in consumer spending all the above factors needs greater depth of study and analysis before the companys makes its stake and investment in the said market.

Natural Environment Involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities. World concern grows over depletion of earths Ozone layer and the resulting Green House Effect a dangerous warming of the earth.

Other areas of concern are Shortage of Raw materials due to deforestation, conversion of agri land to urban development, Depletion of renewable resources like dwindling of forests have a cascading effect on the overall development. Newer technology, R& D efforts in exploring alternative resources to contain such drawbacks are only hope of savior in future.

Increased cost of energy escalation of cost of oil (non-renewable energy) is having greater impact on development of society. Increased Pollution Damages the quality of natural environment. Lack of fresh air in urban society, increase in human ailments and spread of various diseases is a classic example.

Government Intervention in Natural Resource Management -Environmental Protection Agency, Rio De Janero summit are classic examples of various govt. efforts to preserve environment.

Technology Environment -- Is the most dramatic force which is shaping our destiny and existence and way of living. These are forces that create new technologies, creating new product and market opportunities.

Fast Pace of Technological Change :: Advent of personal computers, CD players, upgraded Fax machines, Scanners, Miniature electronics, Robotics and material science. High R & D Budgets Spending by various govt. , both on technology dev. And service offerings and related R&D is very high and occupies most of their wealth. eg., big companies like Wipro, Infosys , IBM, Toyota etc.,

Political Environment :: a, Legislation Regulating Business -- Public policies, concerted effort to regulate flow of business in right direction. Ensures fair markets for goods and services. Almost every marketing activity is subjected to wide range of rules and regulations.

Trade Protection Act in India and foreign countries keeps or contains Institutions against malpractices . Protects consumers from unfair business practices, ensures product and quality in complaince with existing regulations. Media promotion kept under check with help of various agencies to contain transmission of wrong message to end customers.

Cultural Environment ::: Institutions and other forces that affect societys basic values, perceptions, preferences, and behaviors. Persistence of Cultural values. Core beliefs, cultures, traditions, way of life are passed on from parents to childrens.

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