Amity Business School

Amity Business School

MBA (RM) 2013, 1st Semester Marketing Management Amanpreet Kang

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Write Notes on..

1. Relationship Marketing (aspects of relationship marketing and its importance)
Quote two examples

2. Social Marketing (need for social marketing and essentials of social marketing
Quote two examples

Notes should be handwritten and staples Books referred to be clearly mentioned Mention your names and class roll numbers on the notes
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Analyzing the Marketing Environment

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Introduction
Marketing environment forces outside marketing that affect the marketers ability to build and maintain successful relationship with the target customers. Some examples ??? Successful relationship ??? Disciplined methods:
Marketing research Marketing intelligence

Micro and macro environment.

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Micro and Macro environment

Microenvironment consists of forces close to the company that affect its ability to serve its customers. Factors can be controlled by the company by its own action and hence called controllable factors Macroenvironment consists of larger societal forces that affect the microenvironment.
These factors are larger societal forces that cannot be controlled by the company at-least in the short run and are also called uncontrollable factors.

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Companys Microenvironment
Relationship with customers by creating customer value and satisfaction. Internal - Company departments Suppliers Marketing intermediaries Competitors Public Customers

1. 2. 3. 4. 5. 6.

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Companys Microenvironment
1. Internal - Company departments internal marketing, think customer 2. Suppliers important link in value delivery system, control the quality and prices of the final goods that customers get
Big Bazaar, vendor satisfaction survey

3. Marketing intermediaries distribute, sell and promote products.

Resellers: wholesalers and retailers, fragmented vs. dominant Physical distribution firms: help move company goods from point of origin to their destination Marketing services agencies and Financial intermediaries
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Companys Microenvironment
4. Competitors; company must provide greater customer value than competitors 5. Public is a group that has actual or potential interest in/ impact on an organisations ability to achieve its objectives
Financial, media, government, citizen-action, local, general, internal

6. Customers 5 types of customer markets

Consumer, business, reseller, government, international

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Companys Macroenvironment
Includes forces that affect microenvironment and cannot be controlled. 6 forces are: Demographic environment Economic environment Natural environment Technological environment Political and social environment Cultural environment

1. 2. 3. 4. 5. 6.

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Demographic environment

Demography is the study of human population in terms of size, density, location, age, gender, race, occupation, etc.
Large and diverse population Large emperors and empresses, six-pocket syndrome Pampers in Pakistan Alliance in India

Asian subcontinent
Increasing population Growing middle class (Deprived .9; Aspirers .9 to 2; Seekers 2 to 5; Strivers 5 to 10 and Global 10 and over) Growth in rural population Changing family system (DINKs and DISKs) Changing ole of women Educated, white collared, professional population
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Economic environment
Economic environment consists of factors that affect purchasing power and spending patterns. Markets need buying power and people Level & distribution of income Industrial, subsistence and developing economies Global financial crisis Sub-prime crisis Changing income distribution and consumers spending patterns Engels laws
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Natural environment
Natural environment involves natural resources that are needed as inputs by marketers or that are affected by marketing activities. Industries cluster Growing shortage of raw material Increased pollution Increased government intervention Green movement, environmental sustainability, carbon credits
HP and its products
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Technological environment

Technological environment: socio-technographic

RFID (radio-frequency identification) New markets and opportunities

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Political and Social environment

Political environment consists of laws, govt. agencies and pressure groups that influence or limit various organisations and individuals in a society

1) Legislation regulating business

Increasing legislation protect companies (MRTP), protect customers, protect interests of society Changing government agency enforcement FDA, EPA New forms of Non-tariff barriers

2) Ethics and Socially responsible actions: do the right thing

Socially responsible behaviour: online privacy, Cause related marketing: P&G Pakistan (Khawbon se agey) Strategy for selling rather than strategy for giving
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Cultural environment
Cultural environment consists of institutions and forces that affect a societys basic values, perceptions, preferences ad behaviours. Persistence of cultural values: core and secondary values Shifts in secondary cultural values Peoples view of themselves Peoples view of others People view of organisations Peoples views of society Peoples views of nature Peoples views of universe

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Responding to Marketing Environment

Examples where companies responded well to micro as well as macro environmental changes Microenvironment: Infosys and recession in 2008/ 2009 Introduction of Disintermediation and reintermediation Case of CAT consumers in China Case of Chinese earthmoving machines as competition to CAT Macroenvironment: Introduction of new engines by CAT and rebuilding the old ones as per new market regulations Case where CAT moved out of Agriculture segment to focus on Infrastructure

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Thanks

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