LOOKING AT THE WOODS: MACRO ENVIRONMENT &

ANALYSIS- I

IMT-N-I-12-MM1

Marketing Management 1

Session XI

Learning Objectives

Opportunity Analysis

1. Environmental Forces

1. Marketing Environment

1. Micro Environment

2. Macro Environment

2. Marketing Information System

1. Components of Marketing Information System

3. Key Methods: Tracking & Identifying Opportunities

2

Marketing Environment

Internal Environment

Micro Environment

Task Environment

External Environment

Macro Environment

Broad Environment

Company & Employees Financers & Bankers Research & Development Material Suppliers Service Suppliers Channel Partners Consumers

Political-Legal Envt. Economic Envt Socio-Cultural Envt. Technological Envt. Demographic Envt. Natural Envt.

Mega Environment

Marketing Environment

Micro Environment

Forces Close to Company

Macro Environment

Larger Societal Forces

Company Suppliers Intermediaries Customers Competitors Publics

Financial Media Government Local

Political-Legal Economic Socio-Cultural Technological Demographic Natural

Micro Environmental Forces

Company Employees, Departments, TLM, Strategies

Suppliers Material/ Service suppliers, Costs & Timely supplies

Intermediaries Promote, sell & distribute products

Customers Consumer, Business, Reseller, Government, International

Competitors Competition, Competitive advantage, Winning strategies

Publics Financial bodies, Media, Government, Local, NGO’s

Macro Environmental Forces

Demographic

EconomicPolitical-Legal

Socio-CulturalTechnological

Natural

Demographic Environment

Population growth India has 17% of world population & 2.4% of area 1/3rd of villages have no shops

Population age mix Nation of youngsters- 24 yrs average age

Educational groups 65% Literacy

Household patterns Shifts to nuclear family, Working couples

Geographical shifts Migrations, repatriation

Economic Environment

Income Distribution Savings, Debt and Credit

Levi’s has responded to changes in income distribution by offering an upscale line and a mass market line

Socio Cultural Environment

Persistent cultural Values Core beliefs, values & customs

○ Individualism Vs Collectivism○ Views on family, religion & caste

Cultural Shifts Secondary cultural values

○ Changes in income & consumption From Earn now -spend later To Earn now- spend now

○ Changes in worldview

Natural Environment

Shortage of raw materials

Increasedenergy costs

Anti-pollutionpressures

Governmentinitiatives

Technological Environment

Pace of changeRate of adoption fastest

Moore’s law

Opportunities for innovationPeople open to changes

Global R&D for innovations

Increased regulationof change

TM, Patents, drug trials

Political-Legal Environment

Increase in business legislation

Growth of specialinterest groups

Trends Shaping the Business Landscape

Macro economic Trends Profound shifts in centers of economic activity Increases in public-sector activity Change in consumer landscape

Social & Envtl. Trends Technological connectivity Scarcity of well-trained talent Increase in demand for natural resources Increase in scrutiny of big business practices

Business & Industry Trends Emergence of new global

industry structures Ubiquitous access to information `Management shifts from art to

science

Fad, Trend, Mega trend

“Ten trends to watch in 2006” McKinsey Quarterly Jan.2006

Marketing Information system

External data

Internal data

Requested information

Marketing Research

division

MarketingInformation

system

Marketing Managers

Division

Marketing Plan Assignment Individual Submission

Due on 15th session- August 22nd -23rd Handwritten, 2500 words- 10 pages maximum Broad openings:

○ Executive Summary○ Situation Analysis (5 C’s)○ Marketing Strategy (STP)○ Objectives & Projections○ Tactical plans (4 P’s)○ Implementation & Control

About any product- existing or new Write a marketing plan

Observe trends in last one year Make projections for next one year Make use of tools covered

Leads Sttgy slide + Tivo case + Ppts at handout folder + ‘Mithila food’ exhibit chapter 2