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M D01

Marketing Management

Session 6

Deepak Sundrani
Marketing environment
The actors and forces outside marketing
that affect marketing managements ability
to build and maintain successful
relationship with target customers.
Marketing Environment
Micro-Environment Macro-Environment
- The company - Demographic
- The suppliers - Economic
- Marketing - Natural
Intermediaries - Technological
- Customers - Political
- Competitors - Cultural
- Publics
Marketing Environment
1) The Company

Top Management
Finance Department
R&D Department
Purchasing Department
Operations Department
Accounting Department
2) Suppliers

They provide the resources (inputs)

Raw materials
Finance (Banks, etc.)
Spare parts, machinery,etc
3) Marketing Intermediaries

Help the company to promote, sell, and distribute

its products to final buyers.

Wholesalers, retailers,
Ad agencies
Banks, Insurance companies, etc.
4) Customers

Consumer markets
Business Markets
Reseller markets
Government markets
International markets
5) Competitors

Co. should provide provide greater

customer value and satisfaction than its
competitors do.
6) Publics
is any group that has an actual or potential
interest in or impact on an organisations
ability to achieve its objectives.

Financial publics, Media publics,

Government publics, citizen action publics,
local publics, general public, internal
Companys Macro-environment
1) Demographic environment (Population)

Population growth *
Population age mix
Ethnic market
Educational groups
Household patterns
Geographical shifts in population rural to urban to
Quad bike
Companys Macro-environment
1) Demographic environment (Population)

Population growth
Population age mix
Ethnic market
Educational groups
Household patterns
Geographical shifts in population rural to urban to
2) Economic environment
Income distribution
Savings, debt and credit availability
3) Natural Environment
Shortage of raw material
Increased energy costs petroleum
Anti-pollution pressures
Changing role of governments clean environment
4) Technological environment
Accelerating pace of change
Unlimited opportunities for innovation
Varying R & D Budgets
Increased regulation of Technological change
5) Political legal environment
Legislation regulating business
Growth of special-interest groups Consumer groups
6) Socio-cultural environment
High persistence of core cultural values
Existence of sub-cultures ( eg teenagers)
Shifts of secondary cultural values through time
From internal Environment Analysis the
company comes to know of its strengths and
weaknesses (SW)

From External environment the company gets

Opportunities and Threats (OT)

By doing SWOT Analysis, the Company can

then form a marketing strategy
Environmental Scanning
Process by which the organisations
monitor their relevant environment to
identify opportunities and threats affecting
their businesses for the purpose of taking
strategic decisions
General versus
Relevant Environment



General Environment
Factors to be Considered for
Environmental Scanning
1) Events specific occurrences
2) Trends general tendencies
3) Issues concerns
4) Expectations - demands
Sources of information
for Environmental Scanning
1) Secondary sources (Documents)
2) Mass media
3) Internal sources
4) External agencies
5) Formal studies
6) Spying and surveillance
Gathering Information
and Measuring Market
Why companies need information ?

To produce superior customer value and


Good products and marketing programs

begin with solid information on consumer
needs and wants.
Companies have a lot of information, but
fail to manage and use it well.

Right information
in the right form
at the right time,
to help them make better marketing
Marketing Information system
Consists of people, equipment, and


gather, sort, analyze, evaluate, and

distribute needed, timely and accurate
information to marketing decision makers

Internal Marketing Marketing

Data intelligence Research
1) Internal Data
Sources : Accounts department, operations,
marketing, customer service,
sales force reports.

Can be accessed more quickly and

cheaply than other sources.
2) The Marketing intelligence system
Systematic collection and analysis of
publicly available information about
competitors and developments in the
market place.

Goal is to improve strategic decision

making, assess and track competitors
actions, and provide early warning of
opportunities and threats.
The Marketing intelligence system
Sources of information :
1) Own Sales force
2) Suppliers, dealers, customers
3) Monitor published info about competitors,
4) Purchase competitors products, etc
5) Annual reports of competitors, business publications,
trade show exhibits, press releases, advertisements,
6) Job postings of competitors
7) Purchase Online databases
8) Spies as drivers of cars in which senior managers travel