Professional Documents
Culture Documents
Marketing
"the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. -AMA
Marketing Environment
Marketing Environment: The actors and forces influencing the companys ability to build and maintain successful relationships with target market & customers Microenvironment Includes the actors close to the company Macroenvironment Involves larger societal forces that affect the whole microenvironment
Cultural
Publics
Economic
Suppliers
Technological
The Microenvironment
Company
Publics
Suppliers
Competitors Customers
Intermediaries
Microenvironment
Actors
1. The company 2. Suppliers 3. Marketing intermediaries 4. Customers 5. Competitors 6. Publics
Marketing must consider other parts of the organization including finance, R&D, purchasing, operations and accounting Marketing decisions must relate to broader company goals and strategies
Microenvironment
Actors
1. The company 2. Suppliers 3. Marketing intermediaries 4. Customers 5. Competitors 6. Publics
Marketers must watch supply availability and pricing Effective partnership relationship management with suppliers is essential
Microenvironment
Actors
1. The company 2. Suppliers 3. Marketing intermediaries 4. Customers 5. Competitors 6. Publics
Help to promote, sell and distribute goods to final buyers Include resellers, physical distribution firms, marketing services agencies and financial intermediaries Effective partner relationship management is essential
Microenvironment
Actors
1. The company 2. Suppliers 3. Marketing intermediaries 4. Customers 5. Competitors 6. Publics
The five types of customer markets Consumer Business Reseller Government International
Microenvironment
Actors
1. The company 2. Suppliers 3. Marketing intermediaries 4. Customers 5. Competitors 6. Publics
Conducting competitor analysis is critical for success of the firm A marketer must monitor its competitors offerings to create strategic advantage
Microenvironment
Actors
1. The company 2. Suppliers 3. Marketing intermediaries 4. Customers 5. Competitors 6. Publics
A group that has an actual or potential interest in or impact on an organization Seven publics include: Financial Media Government Citizen-action Local General Internal
The Macroenvironment
Macroenvironmental Forces
Demographic Economic Natural Technological Political Cultural
The Macroenvironment
Demographic Cultural
Forces that Shape Opportunities and Pose Threats to a Company
Economic
Political Technological
Natural
Demographic Environment
Demographic Environment:
The study of human populations in terms of size, density, location, age, gender, race, occupation and other statistics
Indias largest urban agglomerate are Mumbai, Chennai, Kolkata, Delhi, Hyderabad & Bangalore. One of the largest middle class in the world, with rising income. Has one of the largest & youngest populations in the world with very high aspiration The total urban population in the country as per Census 2011 is more than 377 mn constituting 31.16% of the total population.
Population of children in the age group (06) is 158.8 million in Census 2011. In comparison to Census2001, the number of children in urban areas has increased by 10.32%, while in the rural areas it has decreased by 7.04%. Sex ratio (the number of females per thousand males) is 940 (947/926 inRA/UA). Child Sex Ratio is 914 (919/902 in RA/UA) The Literacy Rate is 74.04. (In RA the LR is 68.91 and in UAit is 84.98)
Young group attracted competitors in the area of motor bikes, readymade garments, mobile phones, soft drinks, fast food chains, Liquor 50% population is woman and their traditional roles have also changed, most women are self-confident and also educated and empowered. This shift has resulted in a whole range of new products like ready to cook, ready mixes, cooking range, washing machine, vacuum cleaner. More egalitarian relationship between husband & wife & also a move toward more shared decision making pattern between parents & children. Despite these changes the fact remains that most people continue to give more priority to the families & families continue to maintain strong kinship, bonds & ties. Examples : ads of washing machines, masalas, Cars , Wasing powders, insurance companies are giving total picture of family & love 3 - 17
factors that affect consumers buying power and patterns. 1. GNP/GDP 2. Per capita income. 3. Balance of payments position. 4. Industry life cycle and current phase through which the industry is passing .The different phases of this life cycle could be classified as recovery, boom, recession and depression. 5. Trends in the prices of goods and services specifically , whether the inflationary or deflationary trends are visible. 6. Fiscal policies and prime rate of interest charged by commercial banks.
Economic Environment
The economic environment is characterized by more consumer concern for value in shifting consumer spending patterns. Today's squeezed consumers are seeking greater value -- just the right combination of good quality and service at a fair price. The distribution of income also is shifting. The rich have grown richer, the middle class has shrunk, and the poor have remained for, leading to a two-tiered market. Many companies now tailor their marketing offers to two different markets-- the affluent and the less affluent.
Economic Environment
Natural Environment
Natural Environment:
Involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities
Trends
Shortages of raw materials Increased pollution Increased government intervention
Technological Environment
The most dramatic force shaping our destiny Rapidly changing force which creates many new marketing opportunities but also turns many existing products extinct
Political Environment
Consists of laws, government agencies and pressure groups that influence or limit various organizations and individuals in a given society
Legislation affecting businesses worldwide has increased Laws protect companies, consumers and the interests of society Increased emphasis on socially responsible actions
Cause-Related Marketing
Marketers create link between brand and charitable organization Demonstrates social responsibility Helps build positive brand image Examples include General Mills Box Tops for Education, Tang and Mothers Against Drunk Driving, Eddie Bauer and local schools
Cultural Environment
Made up of institutions and other forces that affect a societys basic values, perceptions, preferences and behaviors.
Society
Patriotism on the rise
Others
Recent shift from me to we society
Nature
lifestyles of health and sustainability (LOHAS) consumer segment
Organizations
Trend of decline in trust and loyalty to companies
Universe
Includes religion and spirituality
Thank You