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MM-EPMB XI 1
MARKETING MANAGEMENTEPBM XI
Dr. Prafulla Agnihotri,
Professor, Marketing Group,
IIM Calcutta
Office: NTB E 107; Ext. 529
[email protected]
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2
Session 2
The Marketing Environment
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3
There are three kinds of companies:
those who make things happen,
those who watch things happen, andthose who wonder what has
happened.
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MM-EPBM XI 4
Marketing Environment
It consists of the
larger societal forces
that affect themicroenvironment.
It consists of the
actors close to the
company that affectits ability to serve its
customers.
Macro Environment Micro Environment
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MM-EPBM XI 5
MAJOR ACTORS AND FORCES IN THE
COMPANYS MARKETING ENVIRONMENT
ECONOMIC
POLITICAL /
LEGAL
PHYSICAL
TECHNO-
LOGICAL
DEMOGRAPHIC
SOCIO /
CULTURAL
Competitors
Suppliers Company Marketing
intermediaries
Customers
Publics
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MM-EPBM XI 6
The Companys Macroenvironment
Demographic Environment
Natural Environment
Economic Environment Technological Environment
Competition
Political and Legal Environment, and Social and Cultural
Environment
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MM-EPBM XI 7
Actors in Microenvironment
The Company
Suppliers
Marketing Intermediaries Customers
Competitors, and
Publics
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8
Continuum of Environmental
Sensitivity
Insensitive Sensitive
Industrial
products
Basic
commodity-type
consumer
products
Consumer
products
that are
Linked toCultural
variables
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MM-EPBM XI 9
Evaluating Opportunities in the
Changing Marketing Environment
Objectives should set the firms course
Specific activity that should be socially useful(be a
do-gooder)
and economically meaningful (earn someprofit)
Develop an organisation to carry on the
business and implement its strategies Develop a mission
statement
Earn enoughprofit to survive and grow
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MM-EPBM XI 10
Evaluating a Portfolio of Opportunities
Industry Attractiveness
High Medium Low
Busine
ssstrengths
High
Medium
Low
Size
Growth
SharePosition
Profitability
Margins
Technology
positionStrengths/
weaknesses
Image
Pollution
People
Size
Market growth,
Market diversity
Competitive
structure
Industry
profitability
Technical roleSocial
environment
Legal
environment
Human factors
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MM-EPBM XI 11
Evaluating a Portfolio of Opportunities
Industry Attractiveness
High Medium Low
Busine
ssstrengths
High
Medium
Low
Size
Growth
SharePosition
Profitability
Margins
Technology
positionStrengths/
weaknesses
Image
Pollution
People
Size
Market growth,
Market diversity
Competitive
structure
Industry
profitability
Technical roleSocial
environment
Legal
environment
Human factors
Invest
Invest
Invest
Protect
Protect
Protect
Harvest
Harvest
Divest
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MM-EPBM XI 12
Four Basic Types of Opportunities
Market
Penetration
PresentProducts
NewProducts
Present
Customers
NewCustomers
Note: hybrid combinations are common
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MM-EPBM XI 14
Market
Penetration
PresentProducts
NewProducts
Present
Customers
New
Customers
Note: hybrid combinations are common
Market
Development
Product
Development
Four Basic Types of Opportunities
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MM-EPBM XI 16
Distinguishing Opportunities
Breakthrough
Opportunity
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MM-EPBM XI 17
Distinguishing Opportunities
Breakthrough
Opportunity
Competitive
Advantage
vs.
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MM-EPBM XI 18
The Marketing Management Process
Analysingmarketing
opportunities
Researchingand selecting
target markets
Designing
marketing
strategies
Planning
Marketing
programmes
Organising,
implementing, and
Controlling
marketing efforts
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MM-EPBM XI 19
Break
