Marketing

Environment
 Marketing
Environment
 The marketing environment consists of actors
and forces outside the organization that affect
management’s ability to build and maintain
relationships with target customers.
 Environment offers both opportunities and
threats.
 Marketing intelligence and research used to
collect information about the environment.
 Marketing
Environment
 Includes:

Micro-environment: actors close to the
company that affect its ability to serve its
customers.
 Macro-environment: larger societal forces that
affect the microenvironment.
• Considered to be beyond the control of the
organization.
 Actors in the
Microenvironment
 The Company
 Company’s Internal Environment:

Areas inside a company.

Affects the marketing department’s
planning strategies.
 All departments must “think consumer”

and work together to provide superior

customer value and satisfaction.
 The Suppliers
Suppliers:
Provide resources needed to
produce goods and services.
Important link in the “value delivery
system.”
Most marketers treat suppliers like
partners.
 Marketing
Intermediaries
 Help the company to promote, sell, and
distribute its goods to final buyers
• Resellers
• Physical distribution firms
• Marketing services agencies
• Financial intermediaries
 Customers
Customers:
Five types of markets that purchase a
company’s goods and services
 Consumer market
 Business market
 Reseller market
 Govt. market
 International market
 Competitors


Those who serve a target market with
products and services that are viewed by
consumers as being reasonable substitutes


Company must gain strategic advantage
against these organizations
 Publics
Any group that has an actual or potential interest in or
impact on an organization’s ability to achieve its
objectives.
 The Macro-
environment
The company and all of the other actors
operate in a larger macro-environment of
forces that shape opportunities and pose
threats to the company.

“ It
is useless to tell a river to stop running; the
best thing is to learn how to swim in the
direction it is flowing”
The Company’s Macro-
environmental Forces
 Demographic Environment
 Demographic Environment:

The study of human populations in
terms of size, density, location, age,
gender, race, occupation and other
statistics
 Demographic Environment
Worldwide
WorldwidePopulation
PopulationGrowth
Growth

Population
PopulationAge
Age Mix
Mix
Literacy
LiteracyLevel
Level of
of Population
Population
Household
Household Patterns
Patterns
Geographical
Geographical Shifts
Shiftsin
inPopulation
Population
Shift
Shift from
from Mass
MassMarket
Marketto
toMicromarket
Micromarket
 Economic Environment

Income
Income Distribution
Distribution
Savings,
Savings, Debt,
Debt, & &
Credit
Credit Availability
Availability
 Natural Environment

Shortages of Raw Materials

Increased Pollution

Increased Government Intervention

Environmentally Sustainable Strategies

 Technological Environment

Accelerating
Accelerating Pace
Pace Unlimited
Unlimited Opportunities
Opportunities
of
of Change
Change for
for Innovation
Innovation

Issues
Issues in
in the
the Technological
Technological
Environment
Environment

Varying
Varying Increased
Increased
R
R&&DD Budgets
Budgets Regulation
Regulation
 Political-Legal Environment
 Increase in business legislation
 Protecting the welfare of consumers
Under Consumer Protection Act,1986, six rights of
the consumers are recognised:
 Safety
 Information
 Choice
 Representation
 Redressal
 Consumer education
 Socio-Cultural Environment
 The institutions and other forces that affect a
society’s basic values, perceptions,
preference, and behaviors.
 Core beliefs and values are passed on from
parents to children and are reinforced by
schools, churches, business, and government.
•
 Secondary beliefs and values are more open
to change.
 INDIAN MARKETING
ENVIRONMENT
Few Examples…………
 How some of the industry leaders lost their
competitive advantage because they failed to
perceive the environmental changes….?
 The decade of 1980s saw many of the
industry titans losing their competitive
advantage to relatively new entrants……..
(Contd..)
 Few Examples…………
 Hindustan Motors and Premier
Automobiles lost their pre-eminent
position in the Indian market to Maruti
Udyog’s Maruti 800.
 Mahindra and Mahindra were shaken up
by Maruti Udyog’s Gypsy.
 Titan watches heralded a new era of
watches and shook the giant HMT.
 Hindustan UniLevers Surf was cornered
by Nirma.
 Few Examples…………
 Television giants like NELCO, Crown,
Weston, Salora, Bush etc. lost out to
absolutely new firms and brands like LG
and Samsung.
 Videocon launched its washing machine
in1998 and suddenly thereafter, one saw
an explosion in the market with about
half-a-dozen brands.
 Environmental scanning
 Monitor: trends, issues and events
 Identify: trends, issues, events that are
significant to the organization
 Evaluate: the impact of trends, issues and
events upon the organization in the current
market
 Forecast: Examine the threats & opportunities
they are likely to bring in future
 Evaluate: Impact of threats and opportunities on
the firm’s long term strategy