Marketing Management

Session 3
Topic no. 2 Marketing Environment

Contents:
Definition of Marketing Environment Need for Environmental Analysis Importance of Environment Analysis Analyzing Needs and Trends Components of Micro Environment Components of Macro Environment Evaluation of Market Opportunities

Definition of Marketing Environment

The companys marketing environment is made up of the sectors and forces outside the firms marketing function which break upon the ability of marketing management to develop and maintain a successful relationship with the firms target audience. - Philip Kotler

Need for Environmental Analysis

Five Stages Of Environmental Analysis-

Audit of environment influences

Assessment of the nature of the environment

Identification of the key environmental forces

Identification of the opportunities and threat

Strategic position

Importance of Environmental Analysis

1) 2) 3) 4) 5) 6) 7) It creates general awareness. It guides with matters relating to Government. It helps in marketing analysis. It suggests improvements in diversification and resources. It helps firms to identify & capitalize opportunities. It provides a base of objective qualitative information. It provides a broad based education for executives.

Analyzing Needs and Trends

Need :
Needs are basic human requirements.

Fad :
A fad is unpredictable, short-lived and without social, economic and political significance.

Trends :
A trend is a direction or sequence of events that has some momentum and durability.

Megatrends :
Megatrends are being described as large social, economic, political and technological changes are slow to form and once in place they influence us for some time-between seven and ten years or longer.

Components of Micro Environment

Consumers Distributors Competitors Suppliers

Components of Macro Environment

Demographic factors Socio-Cultural factors Political factors Economic factors Technological factors Legal factors

Evaluation of Market Opportunities

The main forces operating to create opportunities in market are: 1. 2. 3. 4. 5. Changing customer demand Changing competition Changing technology Changing economic, government & legal policies Changing social & cultural changes

Thank You