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The Marketing Environment

3. The Marketing Environment. Marketing Environment. Includes: Microenvironment: actors close to the company that affect its ability to serve its customers. Macroenvironment: larger societal forces that affect the microenvironment. Considered to be beyond the control of the organization.

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The Marketing Environment

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  1. 3 The Marketing Environment

  2. Marketing Environment • Includes: • Microenvironment: actors close to the company that affect its ability to serve its customers. • Macroenvironment: larger societal forces that affect the microenvironment. • Considered to be beyond the control of the organization.

  3. Actors in the Microenvironment

  4. The Company’s Microenvironment • Suppliers: • Provide resources needed to produce goods and services. • Important link in the “value delivery system.” • Most marketers treat suppliers like partners.

  5. The Company’s Microenvironment • Marketing Intermediaries: • Help the company to promote, sell, and distribute its goods to final buyers • Resellers • Physical distribution firms • Marketing services agencies • Financial intermediaries

  6. 5 Types of Customers • Consumer markets • Business markets (B to B) • Reseller markets • Government markets • International markets

  7. Competitors • Must understand competitor’s strengths • Must differentiate firm’s products and offerings from those of competitors • Competitive strategies should emphasize firm’s distinctive competitive advantage in marketplace

  8. Types of Publics

  9. The Macroenvironment • The company and all of the other actors operate in a larger macroenvironment of forces that shape opportunities and pose threats to the company.

  10. The Company’s Macroenvironment

  11. Demographic Environment • Consumer Groups- 1. Infants 7. Singles 2.Children 8.Occupation and Literacy 3.Young Adults(19-30 years) Location 4.Adult (35-50) 5.Senior Citizens 6.Women

  12. The Seven U.S. Generations

  13. Changing American Family • Household makeup: • Married couples with children = 34%, and falling • Married couples and people living with other relatives = 22% • Single parents = 12% • Single persons and adult “live-togethers” = 32%

  14. Better Educated Population • 1980: • 69% of people over age 25 completed high school • 17% had completed college • 2002: • 84% of people over age 25 completed high school • 27% had completed college • Currently, ⅔ of high school grads start college

  15. Economic Environment • GDP-Gross Domestic Product. A measure of the value of goods and services produced in a year • Purchasing Power Parity:An economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power.

  16. .General Economy Business Cycle: Growth/Prosperity:Employment rate is High,Interest rate is low,Inflation is low and Income is high. Recession:Employment rate is low/Spending of people get lower.

  17. . • Depression:The rate of unemployment is high,wages are very low,Gross National Product Drops,Customers lack confidence in the economy. • Recovery: High unemployment Rate begins to decline,purchasing power increases.

  18. Buying Power • Income-Disposable income/Discretionary income. • Credit- • Wealth

  19. Willingness to Spend • Willingness of a customer to spend depends on his buying power and the prevailing and expected economic conditions.

  20. Income Inflation Recession Exchange rate Income Distribution Upper class Middle class Working class Underclass Economic Environment Consists of factors that affect consumer purchasing power and spending patterns.

  21. Natural Environment • Involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities.

  22. Natural Environment • Maintain Ecological Balance • Technological Developments have led to ecological imbalances. • Resources:De-marketing their Products-IOC “SAVE OIL-SAVE INDIA” • Weather,pollution(CFC,PVC,Polyethylene bags). • Government Interventions.

  23. Technological Environment • Most dramatic force now shaping our destiny.

  24. Impact of technology Let us discuss using 4PS.

  25. Socio-Cultural Environment • The institutions and other forces that affect a society’s basic values, perceptions, preference, and behaviors.

  26. Socio-Cultural • Life style • Emergence of shopping malls,supermarkets and Hypermarkets(Both husband & Wife Earning). • Average income level • Food habits. • Multiple Life styles • The changing structure of families.

  27. Political Environment 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 Responsible Actions

  28. Political Environment • Coke moved out of India in 1977. • Domestic Politics • International Politics

  29. Legal Environment • Prevention of food and adulteration act 1954. • Drugs control Act-1954. • Company Act-1956 • Standard Weights and measurement Act-1956. • MRTP-Monopoly and restrictive Trade Practices-1969

  30. Legal Environment • Display of price order-1963 • Indian Patents Act. • Packaged Commodities (Regulation)Order-1975. • Consumer Protection Act-1986. • Water(Prevention and control of pollution) Act-1981.

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