Topic The Marketing Environment. 3-2 Sherlock Holmes asked Dr. Watson “ How many steps led up to baker street Apartment. He said I Don’t Know You see

Topic

The Marketing Environment

3-2

Sherlock Holmes asked Dr. Watson “ How many steps led up to baker street Apartment . He said I Don’t Know You see but you do not observe

Copyright 2007, Prentice Hall, Inc. 3-3

3-4

Marketing Environment

Includes:– Micro environment: 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.







Retail Stores




Low Cost carriers


Nissan Brings back Datsun with Go Car

http://www.usatoday.com/story/money/cars/2013/07/15/datsun-go-nissan-india/2518257/



http://www.cokesolutions.com/Pages/default.aspx






Actors in the Microenvironment

The Company’s Macroenvironment

Increasing population– Rapid growth in urban population in Asia– In India, urban population to rise to 523

million by 2025– A growing middle class– Division based on real annual disposable

income: Deprived households , Aspirers Seekers , Strivers , Global Indians

Demographic Environment

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Baby Boomers: post-WW-II.

– 78 million born between 1946 and 1964.– Equal 28% of population.– Earn more than 50% of all personal income.– Almost 25% belong to racial or ethnic minority.– Spend a lot on anti-aging products and services.– Are likely to postpone retirement.

the first two Baby Boomer presidents, Presidents William J. Clinton and George W. Bush, both born in the first year of the Baby Boom, 1946

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Generation X:– 45 million born between 1965 and 1976.– Defined by shared experiences:

• Increasing divorce rates.• More of their mothers employed.

– Cynical of frivolous marketing pitches.– Care about the environment.– Prize experience, not acquisition.

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Generation Y:– 72 million born between 1977 and 1994.– Have large amount of disposable income.– Comfortable with computer technology.– Tend to be impatient and “Now-Oriented.”– Many product lines targeted at those who are part of

Generation Y:• Teen and young adult games• Clothes, furniture, food

Titan introduced range of sunglasses – Fast track http://www.youtube.com/watch?v=YCpI2mX--RA

http://www.youtube.com/watch?v=NksWT1igTGU\

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– Role of woman – 50% of population , has changed which resulted into whole range of new products-ready to cook, ready-mixes, cooking range, chapatti-maker, washing machine, vacuum cleaner, iron, ready-to-eat cereal

– http://www.youtube.com/watch?v=H_R5D4cPmC0

– Top priority to the family, and families continue to maintain strong kinship bonds and ties.

Washing Machines , Kurkure , MDH Masala Ad’s giving total family picture and Love , e.g. the VicksVaporub story, Magi noodles – carry on Jaani, Yeh Mom Made

hai - Rasna (weaving core Indian values into marketing)http://www.youtube.com/watch?v=vKRSQx_HefQ&feature=fvwrel

- Young children more influential about choice ofhttp://www.youtube.com/watch?v=LEYlDGa6oN8

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Political Environment

Includes laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society.

Areas of concern:– Increasing legislation.– Changing government agency enforcement.– Increased emphasis on ethics and socially

responsible behavior.

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Political-Legal Environment

Govt. Intervention in the industry is reality

In India , food companies need approval to launch brands that duplicate what already exists in market, such as another cold drink , or a brand of rice .

It is mandatory all veg. Items carry green dot and non- veg carry red dot. In India all packaged products should have the maximum retail price or

MRP on the package. Auto Industries had to introduce expensive emission controls in the car –

Euro II compliance In India , Delhi the state Govt. Implemented the rule that public

transportation vehicles like auto rickshaws and buses use only compressed Natural Gas ( CNG) as a fuel instead of Diesel and petrol

RBI in India is in process of formulating guidelines to credit card companies , keeping in mind the interest of consumers

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Economic Environment

India’s economy has been showing vibrancy and growth from 1991 ever since the Govt. initiated programs to ease Govt. Controls on industry and commerce.

GDP- 5%-2009

Consists of factors that affect consumer purchasing power and spending patterns.

The global financial crisis of 2007–2009 has affected the consumption and production of many products-subprime housing loans

Value marketing involves ways to offer financially cautious buyers greater value—the right combination of quality and service at a fair price

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Economic Environment

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Changing consumption pattern of Indian consumer

Indian consumer going major transformation Lifestyle products Shopping basket has increasedTata Nano Captured India’s growing Middle classThe Marketing strategy for companies needs to be

focused on the opportunities that economic growth spins off .

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Natural Environment

Involves natural resources that are needed as inputs by marketers or that are affected by marketing activities.

Factors include:– Shortages of raw materials.– Increased pollution.– Increased government intervention.

– Environmentally sustainable strategies.

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Natural Environment

Companies into environmentally friendly products Green Marketing E.g Air (prevention and control of pollution) Act 1981 insists that “

Eco Marks” label in consumer products are environmental friendly

Tata-Green cars , green buildings Wal-Mart plans to work with suppliers to make products that are 25 percent

more energy-efficient over the next three years. GE Ecomagination to create products for better world

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Technological Environment

Most dramatic force shaping our destiny. Changes rapidly. Creates new markets and opportunities. Challenge is to make practical, affordable products. Safety regulations result in higher research costs and longer time between

conceptualization and introduction of product.

Accelerating pace of change – personal computers , digital wristwatches , video recorders , fax machines , internet

Unlimited opportunities of innovations-AID cures , happiness pills , painkillers , robotics , safe contraceptives , nonfattening foods , fantasy products like flying cars , 3-D TV’s

Dell , HP ,Apple and Microsoft with “smart” mobile phones Less risk innovations like freeze-dried coffee , combination shampoos , conditioners ,

antiperspirants and Deo’s

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Cultural Environment

The institutions and other forces that affect a society’s basic values, perceptions, preference, and behaviors.– Core beliefs and values are passed on from parents to

children and are reinforced by schools, churches, business, and government.

– Secondary beliefs and values are more open to change.• Marketers may be able to change secondary beliefs, but

NOT core beliefs.

People’s view of themselves– Yankelovich Monitor’s consumer segments:

• Do-it-yourselfers—recent movers• Adventurers – Master card “There are some things

money cant buy for everything else there is Master card” http://www.youtube.com/watch?v=Pe5XSmMmtP8

People’s view of others– More “cocooning” – going out less and staying home”

Cultural EnvironmentShifts in Secondary Cultural Values

People’s view of organizations People’s view of society – National emotions http://www.youtube.com/watch?v=scltYH13uEY http://www.youtube.com/watch?v=6ddJNRWJrMc

– Patriots defend it– Reformers want to change it– Malcontents want to leave it



People’s view of nature LOHAS (Lifestyle of health and sustainability)-41 million in US,

spends $215billion– Some feel ruled by it– Some feel in harmony with it– Some seek to master it– Global market by 2020 $102 million– GOI has earmarked Rs.1 billion for the promotion of

sustainable Agriculture in tenth five year plan (2002-2007) People’s view of the universe

– Renewed interest in spirituality: Channels like Aastha

Views on Responding

Documents

Topic The Marketing Environment. 3-2 Sherlock Holmes asked Dr. Watson “ How many steps led up to baker street Apartment. He said I Don’t Know You see