MARKETING ENVIRONMENT

GRADE 10

SOURCES OF PRESENTATION

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THE MARKETING ENVIRONMENT

•T

he Marketing Environment can be defined all the Internal and External

Factors and Forces that affect a firm’s ability to develop and maintain

successful transactions and relationships with the target customers.

•T

hus, Marketing Environment includes all forces that affect Marketing

Policies, Decisions and Operations of a company

COMPONENTS OF MARKETING

ENVIRONMENT

Internal environment : Forces and actions inside the firm that affect

the marketing operation composed of internal stake holders and the

other functional areas within the business organization.

External environment• Micro environment • Macro environment

In micro environment:

a) Suppliersb) Market Intermediariesc) Customersd) Competitorse) Public

A – Grab the ATTENTIONI – Generate the INTERESTD – Arose DESIREA – Lead to ACTION

SWOT ANALYSIS:

S – STRENGTHW – WEAKNESSO – OPPORTUNITIEST – THREATS

MACRO ENVIRONMENT : [ EXTERNEL ENVIRONMENT]

Factors

of macro environment:

a)E

conomic

b)P

olitical

c)L

egal

d)S

ocio – culture

e)T

echnical / Technological

f)P

hysical / Natural environment

g)G

lobal

h)D

emo – graphic environment

FACTORS AFFECTING MARKETING ENVIRONMENT

1. POLITICAL FORCES

2. ECONOMIC FORCES

3. SOCIAL AND CULTURAL FORCES

4. NATURAL FORCES

5. TECHNOLOGICAL FORCES

6. DEMOGRAPHIC FORCES

II. POLITICAL:

• Stable government.• Cyclical changes.• Role of private sector in the economy.• Government procedures & changes in

government policy.• Type of government.• Role of small scale industries in the

economy.• Role of service sector in the economy.

I. Economic environment:

a) General economic conditions:

• Agriculture• Industrial output trends• Per – capita income [ income per head]• Income distribution• Savings & Expenditure• Price levels• Employment trends• Impact of government policies• Economic systems

ECONOMIC ENVIRONMENT

The economic environment consists of factors that affect consumers purchasing and spending power.

Under economic environment manager generally studies

1. Trends of gross national product

2. Patterns of real growth in income

3. Variations in geographical income distribution.

4. Borrowing pattern ,trends and governmental and legal

restrictions.

5. Major economic variables

C) State of supply of resources for production:

• Land

• Labor

• Capital

• Machinery

• Managers [ organization ]

b) Industrial conditions:

• Market growth of the industry• Demand patterns of the industry• It’s stage in PLC [ Product life cycle]INTRODUCTION

GROWTH

MATURITY

DECLINE

CULTURALC

onsist of institutions and other forces that affect a society’s

basic values, perceptions, preferences and behaviors.

T

he major cultural values of a society are expressed in people

view’s of: Themselves : people vary in their emphasis on serving

themselves versus serving other. Others : people’s attitudes towards and interactions with others

shift over time. Organizations: people vary their attitudes towards coorperations,

government agencies, trade unions, universities and other organization.

VIII.DEMOGRAPHIC ENVIRONMENT: Population or individual:• Age• Gender• Religion• Caste• Income level• Literacy• Marital status• Family size• Educational background• Life style• Nationality• Language

1. CHANGE THE AGE STRUCTURE

Baby boomers (Born between 1946-1964)

Most powerful forces shaping the marketing

environment.

Rethinking the purpose and value of their work,

responsibilities and relationships.

Reach their peak earning and spending years.

Constitute a lucrative market for marketers

Generation X ( born between 1965 and 1976) Less materialistic than the other group. More sceptical bunch. Most educated generation to date Posses hefty annual purchasing power

Generation Y/ Millennial ( born between 1977

and 2000) Most financially strapped generation Facing higher unemployment Saddled with more debt Yuppies Nearly bankrupt Utter fluency and comfort with digital technology

2. FAMILY STRUCTUREST

he traditional household consist of husband, wife and

children (also grandparents)

T

he changes of family institution structures also consist of non-

traditional household: Married couples without children Single living alone/ adults of one Divorcing or separating Not to marry Marrying later Marrying without attending to have children

TECHNOLOGICAL ENVIRONMENT

M

ost dramatic force now shaping our destiny.

C

hanges rapidly.

C

reates new markets and opportunities

C

hallenge is to make practical, affordable products.

S

afety regulations result in higher research costs and longer time

between conceptualization and introduction of product.

NATURAL FORCES

I

nvolves the natural resources that are needed as inputs by

marketers or that are affected by marketing activities.

INTERNATIONAL MARKETING

Factors influencing international marketing environment:

I.Social factors:

a.National legal regimeb.Political situationc.Financial systemd.Marketing infra – structuree.Culturef.Languageg.Climate

II. Economic factors:a.Commercial policies variablesb.Tariffsc.Quota’sd.Licensing, non- tariffs barrierse.Currency restrictionsf.Internal demand management policies and instruments

III. Competition:•Producers in the importing country•Exporters from the competing countries•Other exporters from one’s own country

IV. Logistics:• Availability of required type of transport• Cost of transportation

V. Risk:• Political & commercial risk• Acts of god / natural calamities• Acts of enemies, pirates• Thief's

SCOPE OF INTERNATIONAL MARKETING:

1.Opening a branch / subsidiary abroad

2.Negotiating / licensing/ franchising / patent’s arrangements

3.Establishing joint ventures in foreign countries for manufacturing or marketing

4.Sub- contracting

5.Importing for export production

RESPONDING TO THE MARKETING ENVIRONMENT

T

hose who make things happen: Take aggressive actions to affect the publics and forces in

their marketing environment Develop strategies to change the environment

T

hose who watch things happen: Passively accept the marketing environment. Do not try to change it.

T

hose who wonder what’s happened: Confused to do an actions and failed to identify the problem

because of the environment changes

REFERENCE

singhbhullar, Y, Dec 10, 2013, marketing-environment-

Varma, J, Feb 28, 2014, badruka college, marketing-

environment

Noah, I, Dec 23, 2013, The-marketing-environment-

THANK YOU