2 Module - Mktg Environment

8/2/2019 2 Module - Mktg Environment

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4-1

Marketing Environment

and Evaluation of Marketopportunities

The Marketing Environment


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4-2

Marketing Environment- consists of the actors and forcesoutside marketing that affect marketing managementsability to develop and maintain successful relationshipswith its target customers.

Companies have to constantly reinvent their brands tokeep up with changing marketing environment.

Example Mattel Toys - Barbie Doll Jewish, Irish

Samsung Theft Proof Model

Includes:

Microenvironment - forces close to the company thataffect its ability to serve its customers.

Macroenvironment - larger societal forces that affectthe microenvironment.



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4-3

Identifying & responding to MacroenvironmentForces

These forces represent noncontrollables to which the

company must monitor and respond

Advancement of international transportation, communication& financial transactions, leading to rapid growth of worldtrade and investment.

Movement of manufacturing capacity and skills to lower costcountries.

Rising economic power of several Asian countries in worldmarkets.

Opening up of new markets, namely China and India.



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4-4

The Companys Macroenvironment


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The Companys MacroenvironmentDemographic

studies populations in terms of size, density,location, age, gender, race, occupation andother statistics.

Economic factors that affect consumer purchasing power

and spending patterns.Natural -

natural resources needed as inputs bymarketers or that are affected by marketing

activities.


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The Companys MacroenvironmentTechnological

Most dramatic force now shaping our destiny.

Political laws, government agencies, and pressuregroups that influence and limit organizationsand individuals in a given society.

Cultural institutions and other forces that affect asocietys basic values, perceptions, preferences,and behaviors.


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The Companys Macroenvironment

Demographic is the study of humanpopulations in terms of size, density, location,

age, gender, race, occupation, and otherstatisticsDemographic environment is important becauseit involves people, and people make up markets

Demographic trends include age, familystructure, geographic population shifts,educational characteristics, and populationdiversity


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Demographic Environment

A growing middle class

divided the Indian population into 5economic classes

Division based on real annual disposableincome


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Deprived households have an annual

disposable income of less than Rs90,000

The poorest economic class

Mostly unskilled or semi-skilledworkers on daily wages



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Aspirers have an annual disposableincome in the range of Rs 90,000 to

Rs 3,00,000

Spend most of their income on basicnecessities

Small-time retailers, small farmers,etc.



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Seekers have an annual disposableincome between Rs 3,00,000 and

Rs 6,00,000. Mostly white-collaremployees, mid-level governmentofficials, newly employed

postgraduates, medium-scale traders



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Strivers have an annual income

ranging from Rs 6,00,000 to Rs12,00,000

Have a stable income source andaccess to amenities

Mostly professionals such aslawyers, CAs, senior governmentofficials, rich farmers



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Global Indians have an annual

disposable income in excess of Rs12,00,000

Creamy layer in society

Globe-trotters with a high standardof living



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Growth in the rural population

A changing family systemThe changing role of women

Increasing diversity


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Ch

anging Age Structure

(78 million people born 1946-1964)One of the most powerful forces shaping themarketing environment, 28% of population

(45 million people born 1965-1976)More skeptical, savvy shoppers, respond to

honesty in advertising, share cultural concerns

(72 million people born 1977-1994)Fluent and comfortable with technology,

smart, aware, fair-minded (N-Gens)


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Changing Family Structure

58% of urbanwomen are workingor looking for a job.

Many marketers oftires, cars, insurance,

travel and financialservices target thesewomen.


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4-17

Economic Environment

Changes in Income1980s consumption

frenzy1990s squeezedconsumer

2000s value marketing

Income DistributionUpper class

Middle class

Working class

Underclass

Changing ConsumerSpending Patterns

Consumers atdifferent incomelevels have differentspending patterns


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Natural EnvironmentShortage of raw materials, Increased energy costs, Anti-pollution pressures, Changing Role of governments

The deterioration of the natural environment is majorglobal concern.Greenhouse gases

Depletion of ozone layer

Growing shortage of water etc

Environment related regulations will hit certain Industrieshard.Industries spewing hazardous fumes, disposing effluents in waterbodies.

Marketers need to be aware of the threats & opportunities

associated with four trends in the natural environment:


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Natural Environment 4 Trends

FactorsAffecting

the

NaturalEnvironment

Shortages ofRaw Materials

IncreasedPollution

Increased Government

Intervention

Cost of Energy


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Technological EnvironmentChanges rapidly

Creates new marketsand opportunitiesChallenge to makepractical, affordableproducts

Safety regulationsresult in higherresearch costs


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IncreasingLegislationIncreasingLegislation

ChangingGovernmentAgency

Enforcement

ChangingGovernmentAgency

Enforcement

Includes Laws, GovernmentAgencies, Etc. that Influence& Limit Organizations/Individuals in a Given Society

Increased

Emphasis onEthics &Socially

ResponsibleActions

Increased

Emphasis onEthics &Socially

ResponsibleActions

Political Environment


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Themselves Identify with

brands for self-

expressionOthers

Recent shift fromme to wesociety

Organizations Trend of decline in

trust and loyaltyto companies

Society Patriotism on the

rise

Nature lifestyles of health

and sustainability(LOHAS) consumersegment

Universe Includes religion

and spirituality

Cultural Environment Includes peoplesviews of


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Cultural EnvironmentViews of themselves

Views of others

Views of organizations

Views of society

Views of nature

Views of the universe


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ThemselvesThemselves

OthersOthers

OrganizationsOrganizations

SocietySociety

NatureNature

The UniverseThe Universe

Cultural Environment

Societys Major

Cultural Views AreExpressed in

Peoples View of:


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Companys Internal Environment


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Marketing mustconsider other parts ofthe organizationincluding finance, R&D,purchasing, operationsand accounting

Marketing decisions

must relate to broadercompany goals andstrategies

Microenvironment

ActorsActors

1. The company2. Suppliers

3. Marketingintermediaries

4. Customers

5. Competitors

6. Publics


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Marketers must watchsupply availability andpricing

Effective partnershiprelationshipmanagement withsuppliers is essential

Microenvironment

ActorsActors



4. Customers

5. Competitors

6. Publics


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Help to promote, sell anddistribute goods to finalbuyers

Include resellers, physicaldistribution firms,marketing servicesagencies and financialintermediaries

Effective partnerrelationship managementis essential

Microenvironment

ActorsActors



4. Customers

5. Competitors

6. Publics


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The five types ofcustomer markets

Consumer Business

Reseller

Government

International

Microenvironment

ActorsActors



4. Customers

5. Competitors

6. Publics


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Conducting competitoranalysis is critical forsuccess of the firm

A marketer mustmonitor its competitorsofferings to createstrategic advantage

Microenvironment

ActorsActors



4. Customers

5. Competitors

6. Publics


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A group that has an actualor potential interest in orimpact on an organization

Seven publics include: Financial

Media

Government

Citizen-action

Local

General

Internal

Microenvironment

ActorsActors



4. Customers

5. Competitors

6. Publics


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The Companys MicroenvironmentCompanys Internal Environment

areas inside a company; top management,

affect the marketing departments plans

Suppliers

provide resources needed to produce goods and

services

Marketing Intermediaries

help the company to promote, sell, and distribute

its goods to final buyers i.e. resellers


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R

esponding to th

eMarketing EnvironmentEnvironmental Management Perspective

Taking a proactive approach to managing the

microenvironment and themacroenvironment by taking proactive(rather than passive) actions to affect thepublics and forces in the marketingenvironment.

How? Hire lobbyists , run advertorials,press law suits, and form agreements.

Documents

2 Module - Mktg Environment