Chapter 3- slide 1

Chapter Three

AnalyzingtheMarketing Environment

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Analyzing the Marketing Environment

TheCompanysMicroenvironment

TheCompanysMacroenvironment

RespondingtotheMarketingEnvironment

TopicOutline

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The Marketing Environment

Themarketingenvironmentincludesthe actorsandforcesoutsidemarketingthat

affectmarketingmanagementsabilityto buildandmaintainsuccessfulrelationships

withcustomers

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The Marketing Environment

Microenvironmentconsistsoftheactors closetothecompanythataffectitsability

toserveitscustomers,thecompany, suppliers,marketingintermediaries,

customermarkets,competitors,and publics

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The Companys Microenvironment

ActorsintheMicroenvironment

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The Companys Microenvironment

Topmanagement

Finance

R&D

Purchasing

Operations

Accounting

TheCompany

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The Companys Microenvironment

Providetheresourcestoproducegoods andservices

Treatedaspartnerstoprovidecustomer value

Suppliers

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The Companys Microenvironment

Helpthecompany topromote,selland

distributeits productstofinal

buyers

MarketingIntermediaries

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The Companys Microenvironment

TypesofMarketingIntermediaries

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The Companys Microenvironment

Firmsmustgainstrategicadvantageby positioningtheirofferingsagainst

competitors

offerings

Competitors

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The Companys Microenvironment

Publics

Anygroupthathasanactualor

potentialinterestinorimpacton anorganizationsabilityto

achieveitsobjectives

Financialpublics

Mediapublics

Governmentpublics

Citizenactionpublics

Localpublics

Generalpublic

Internalpublics

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The Companys Macroenvironment

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The Companys Macroenvironment

Demographyisthestudyofhumanpopulations intermsofsize,density,location,age,gender, race,occupation,andotherstatistics

Demographicenvironmentisimportant becauseitinvolvespeople,andpeoplemake

upmarkets

Demographictrendsincludeage,family

structure,geographicpopulationshifts, educationalcharacteristics,andpopulation

diversity

DemographicEnvironment

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The Companys Macroenvironment

Increasingpopulation

RapidgrowthinurbanpopulationinAsia

InIndia,urbanpopulationtoriseto523million by2025

DemographicEnvironment

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The Companys Macroenvironment

Agrowingmiddleclass

MGIhasdividedtheIndianpopulationinto5

economicclasses

Divisionbasedonrealannualdisposable

income

DemographicEnvironment

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The Companys Macroenvironment

Deprivedhouseholds

haveanannual disposableincomeoflessthanRs

90,000

Thepooresteconomicclass

Mostlyunskilledorsemiskilledworkerson dailywages

DemographicEnvironment

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The Companys Macroenvironment

Aspirershaveanannualdisposable incomeintherangeofRs

90,000toRs

200,000

Spendmostoftheirincomeonbasic

necessities Smalltimeretailers,smallfarmers,etc.

DemographicEnvironment

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The Companys Macroenvironment

Seekershaveanannualdisposableincome betweenRs

200,000andRs

500,000.

Mostlywhitecollaremployees,midlevel governmentofficials,newlyemployed

postgraduates,mediumscaletraders

DemographicEnvironment

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The Companys Macroenvironment

Strivers

haveanannualincomeranging fromRs

500,000toRs

1,000,000

Haveastableincomesourceandaccessto amenities

Mostlyprofessionalssuchaslawyers,CAs, seniorgovernmentofficials,richfarmers

DemographicEnvironment

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The Companys Macroenvironment

GlobalIndianshaveanannual disposableincomeinexcessofRs

1,000,000

Creamylayerinsociety

Globetrotterswithahighstandardofliving

DemographicEnvironment

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The Companys MacroenvironmentDemographicEnvironment

Growthintheruralpopulation

Achangingfamilysystem

Thechangingroleofwomen

Increasingdiversity

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The Companys Macroenvironment

Economicenvironmentconsistsoffactors thataffectconsumerpurchasingpowerand

spendingpatterns

Industrialeconomiesarerichermarkets

Subsistenceeconomiesconsumemostof theirownagricultureandindustrialoutput

EconomicEnvironment

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The Companys Macroenvironment

Theglobalfinancialcrisisof 20072009hasaffectedthe consumptionandproduction ofmanyproducts

Valuemarketinginvolves waystoofferfinancially

cautiousbuyersgreater valuetherightcombination

ofqualityandserviceatafair price

EconomicEnvironment

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The Companys Macroenvironment

ErnstEngelEngelsLaw

Asincomerises:

Thepercentagespentonfooddeclines

Thepercentagespentonhousingremains constant

Thepercentagespentonsavingsincreases

EconomicEnvironmentChangesinConsumerSpendingPatterns

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The Companys Macroenvironment

Naturalenvironmentinvolvesthenatural resourcesthatareneededasinputsby

marketersorthatareaffectedbymarketing activities

Trends

Shortagesofrawmaterials

Increasedpollution

Increasegovernmentintervention

Environmentallysustainablestrategies

NaturalEnvironment

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The Companys Macroenvironment

TechnologicalEnvironment

Mostdramaticforce inchangingthe

marketplace

Createsnew

productsand opportunities

Safetyofnew productalwaysa

concern

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The Companys Macroenvironment

Politicalenvironmentconsistsoflaws, governmentagencies,andpressuregroups

thatinfluenceorlimitvariousorganizations andindividualsinagivensociety

PoliticalEnvironment

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The Companys Macroenvironment

Legislationregulatingbusiness

Increasedlegislation

Changinggovernmentagency

enforcement

Newformsofnontariff

barriersin

trade

Increasedemphasisonethics

Sociallyresponsiblebehavior

Causerelatedmarketing

PoliticalEnvironment

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The Companys Macroenvironment

Culturalenvironmentconsistsof institutionsandotherforcesthataffecta

societysbasicvalues,perceptions,and behaviors

CulturalEnvironment

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The Companys Macroenvironment

Corebeliefsandvaluesarepersistentandare passedonfromparentstochildrenandare

reinforcedbyschools,religiousinstitutions, businesses,andgovernment

Secondarybeliefsandvaluesaremoreopento changeandincludepeoplesviewsof

themselves,others,organization,society, nature,andtheuniverse

CulturalEnvironmentPersistenceofCulturalValues

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The Companys Macroenvironment

Peoplesviewofthemselves

Yankelovich

Monitorsconsumer

segments:

Doityourselfersrecentmovers

Adventurers

Peoplesviewofothers

Morecocooning

CulturalEnvironmentShiftsinSecondaryCulturalValues

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The Companys Macroenvironment

Peoplesviewoforganizations

Peoplesviewofsociety

Patriotsdefendit

Reformerswanttochangeit

Malcontentswanttoleaveit

CulturalEnvironmentShiftsinSecondaryCulturalValues

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The Companys Macroenvironment

CulturalEnvironmentShiftsinSecondaryCulturalValues

Peoplesviewofnature

Somefeelruledbyit

Somefeelinharmonywithit

Someseektomasterit

Peoplesviewoftheuniverse

Renewedinterestinspirituality

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Responding to the Marketing EnvironmentViewsonResponding

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Chapter ThreeAnalyzing the Marketing EnvironmentThe Marketing EnvironmentThe Marketing EnvironmentThe Companys MicroenvironmentThe Companys MicroenvironmentThe Companys MicroenvironmentThe Companys MicroenvironmentThe Companys MicroenvironmentThe Companys MicroenvironmentThe Companys MicroenvironmentThe Companys MacroenvironmentThe Companys MacroenvironmentThe Companys MacroenvironmentThe Companys MacroenvironmentThe Companys MacroenvironmentThe Companys MacroenvironmentThe Companys MacroenvironmentThe Companys MacroenvironmentThe Companys MacroenvironmentThe Companys MacroenvironmentThe Companys MacroenvironmentThe Companys MacroenvironmentThe Companys MacroenvironmentThe Companys MacroenvironmentThe Companys MacroenvironmentThe Companys MacroenvironmentThe Companys MacroenvironmentThe Companys MacroenvironmentThe Companys MacroenvironmentThe Companys MacroenvironmentThe Companys MacroenvironmentThe Companys MacroenvironmentResponding to the Marketing EnvironmentSlide Number 35