K.J. Somaiya College of Science and Commerce(Autonomous)

Reaccredited by NAAC with Grade”A”

Project on MARKETING ENVIRONMENT

Bachelor of Management StudiesSemester III2014-2015

 By

Aftab ManiharSeat number :15-8525

Project guide : PROF CETAN JIWANI

MARKETING ENVIRONMENT

• PRESENTED BY:• AFTAB MANIHAR• SYBMS (MARKETING)

“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.”

(1)Marketing Environment Includes:• Microenvironment: 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.

(2)Components of Marketing Environment

MICRO ENVIRONMENT

MACRO ENVIRONMENT

(A)Micro Environment

• The micro-environment affects the organization directly. It refers to the environment that most closely linked to the firm

• This environment is not also under the full control of business.

• The business is influence by this environment.

Microenvironment

Components

Customer

Supplier

Intermediaries

Competitor

Public

Company

(a)The company

• Company organization consists of Board of Directors and functional managers.

• Marketing plans are drawn up as per the philosophy of Top management.

• Marketing decisions like new products, expansion, etc depend on the support of top management. It depends upon finance, managerial skills, organization’s strengths and weaknesses.

(b)Suppliers

• Provide resources needed to produce goods and services.

• Important link in the “value delivery system.”

• Most marketers treat suppliers like partners.

• Marketers must watch supply availability and pricing

(c)Intermediaries

(d)Customer

• Purchase requirements vary from customer to customer

• influenced by cultural, social and psychological factors

• They are large in number

(e)Competitors

• To be successful, a company must satisfy needs and wants of consumers better than competitors• A company should monitor three variables when analyzing each of

its competitors 1. Share of Market2. Share of Mind3. Share of Heart

• One Must understand competitor’s strengths Must differentiate firm’s products and offerings from those of competitors.

(f)Publics

• A group that has an actual or potential interest in or impact on an organization• Seven publics include:1. Financial2. Media3. Government4. Citizen-action5. Local6. General7. Internal

(B)Macro Environment

• The major external and uncontrollable factors that influence an organization's decision making, and affect its performance and strategies. These factors include the economic factors, demographics, legal, political, and social conditions, technological changes, and natural forces.• Specific examples of macro environment influences

include competitors, changes in interest rates, changes in cultural tastes, disastrous weather, or government regulations.

MacroEnvironment

company

Demographicforces

Economic forces

Technological forces

Political forces

Cultural forces

Natural forces

(a)Demographic Environment• Demography is the study of

human populations

• Demographic Environment is a major interest to marketers

(b)Economic Environment

• The economic environment consist of factors affecting consumers purchasing power and spending patterns both across and within their world markets.

(c)Natural Environment

• The natural environment involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities.

• Topographical factors may affect the demand pattern.

• Ecological factors have recently assumed great importance

(d)Technological Environment

• The technological environment is perhaps the most dramatic force now shaping our destiny.

• Forces that create new technologies, create new product and market opportunities.

• Technological Innovation.

• Role of research and development.

(e)Political Environment

• The political environment consist of laws, government agencies, and pressure groups that influence and limit various organizations and individuals in the given society.

• Has close relationship with the economic system and economic policy.

(f)Cultural Environment• Cultural Environment of a

nation determines the value system of the society which in turn affects the functioning of the Business.

• Sociological factors

• Include factors

(3)Environmental Scanning• Environmental Scanning is the

monitoring , evaluating and disseminating of information from the External and Internal environments to key people within the corporation.

• Corporation uses this tool to avoid strategic surprise.

(4)Technique for Environmental Scanning

• Involves two phases: Information gathering and Evaluating.

• Verbal and Written Information

• Search and Scanning

• Spying

• Forecasting

THANK YOU