Marketing management

MARKETING MANAGEMENT

THE MARKETING ENVIRONMENT

BNMIT MBA

Marketing Environment

The marketing environment consists of actors and forces outside the organization that affect management’s ability to build and maintain relationships with target customers.

Environment offers both opportunities and threats.

Marketing intelligence and research is used to collect information about the environment.

Marketing EnvironmentMicroenvironment: 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

The Company’s Microenvironment

Company’s Internal Environment: Areas inside a company. Affects the marketing department’s

planning strategies. All departments must “think

consumer” and work together to provide superior customer value and satisfaction.

Actors in the Microenvironment

MarketingThe company

Suppliers

Marketing intermediari

es

Customers

Competitors

Publics

The company's MicroenvironmentThe CompanyIt consists of the company’s

Internal Environment: Areas inside a company affects the marketing department’s planning strategies.

All departments must “think consumer” and work together to provide superior customer value and satisfaction.


Suppliers Provide resources needed to produce

goods and services. Important link in the “value delivery

system.” Most marketers treat suppliers like

partners.


Marketing Intermediaries Help the company to promote, sell,

and distribute its goods to final buyers Resellers Physical distribution firms Marketing services agencies Financial intermediaries

Suppliers must partner effectively with marketing intermediaries to optimize the performance of the entire system.

Example: Coca-cola and Mc Donalds

The Company’s MicroenvironmentCustomers:

Five types of markets that purchase a company’s goods and services

Markets Include:ConsumerBusinessResellerGovernmentInternational


CompetitorsThose who serve a target

market with products and services that are viewed by consumers as being reasonable substitutes

Company must gain strategic advantage against these organizations

The Company's Microenvironment

Publics:Group that has an interest in or

impact on an organization & posses ability to achieve its objectives

There are mainly five types of publics

FinancialMediaGovernmentCitizen-ActionLocalGeneralInternal

The Company’s MicroenvironmentPublics

PUBLICSFinancial

Media

Government

Citizen-action

Local

General

Internal

The Company's Macro-environmentThe company and all of the other

actors operate in a larger macro environment of forces that shape opportunities and pose threats to the company.

There are mainly six major forces in the company's microenvironment.

The Company's Macro-environment

CompanyDemographic forces

Economic Forces

Natural Forces

Technical Forces

Political Forces

Cultural Forces

The Company's Macro-environmentDemographic:

The study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics.

Marketers track changing age and family structures, geographic population shifts, educational characteristics, and population diversity.


Age group dominates the choices.

Studying the age group will decide the optimal marketing mix.

Today 72% of the Indian population is young considering of people of 5-44 yrs.

36% of the indian population is below the age of 25yrs.


29.7

62.5

8.9

Sales

0-13yrs15-59yrs60+

The Company's Macro-environmentInteractive

assignment(demographics)Pair with another student to

discuss the following questions: In what ways does the buying

behavior of you and your parents differ?

In what ways does the buying behavior of you and your grandparents differ?

What selling strategies would work best for: You Your parents Your grandparents

The Company's Macro environmentThe New Urban Family

(Demographics)Household makeup:

New Urban woman Major role player , informed ,

independent , enterprising New Urban Man

Caring , concerned , sensitive ,high self esteem, ambitious

New Urban Child Responsible , Disciplined , career

Minded , Conscious of family values ,environmental issues are important.

The Company's Macro-environmentGeographic Shifts in

Population(demographics)15% of Indian residents move each yearIn India people constantly shift towards

the urban areas.General shift toward the Sunbelt statesCity to suburb migration continues as the

price of living is higher in the city/downtown.

Also as the percentage of educated people is increasing the demand for quality products, travel products, internet services etc.65% of Indians are literate.

In general there is an increase in there is an increase in the number of professional workers than manufacturing.

The Company's Macro-environmentIncreasing

diversity(Demographics) -We vary in our ethnic and racial

make up -Marketers are facing

increasingly diverse markets -International as well as local

brands have to plan an adaptive marketing strategy.

- To be a successful marketer we have to diversify the marketing programs and take advantage of opportunities in the fast growing segment.


Economic EnvironmentConsists of factors that affect

consumer purchasing power and spending patterns.

Changes in Income Current income Prices Savings debt

Income Distribution Upper class Middle class Working class Underclass

The Company's Macro-environmentNatural EnvironmentInvolves the natural resources

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

Factors Impacting the natural environment are

-Shortages of Raw Materials- Increased Pollution -Increased Government

Intervention-Environmentally Sustainable

Strategies

The Company's Macro-environmentThe Technical Environment

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.

Most dramatic force now shaping our destiny.

The Company's Macro-environmentThese developments are greatly

influenced by government policies and industry response in term of research and development.

All these technological innovations have lead to shortening of the product life cycle and leads to a higher set of expectations.

Electronics his highly affected by these changes but steel,coal,textiles are relatively stable.

The Company's Macro-environmentPolitical ForcesIt includes Laws, Government Agencies,

and Pressure Groups that Influence or Limit Various Organizations and Individuals in a Given Society.

Increasing Legislation Changing Government Agency Enforcement Increased Emphasis on Ethics & Socially Responsibility.

Indian government consists of several regulatory bodies like telecom regulatory board, Securities exchange board, censor board etc.

A marketer needs to study these policies and also the ideologies of influential political groups and individuals.


Cultural ForcesThe institutions and other forces that affect

a society’s basic values, perceptions, preference, and behaviors.

Society’s cultural views

Nature

Others

Organizations

Society

REVIEW What factors would influence the willingness and

ability of consumers to buy each of the following products?

-Micro wave-Home entertainment system-Motorcycle-Wrist watch If you were to market Toyota Lexus in India what

marketing environments would paly a vey important role and how?