UNI

T1-I
NTRODUCTI
ONTOMARKETI
NG

Uni
t1-I
ntr
oduct
ion

Mar
ket

Meani
ng

Thet
erm'
Mar
ket
'i
sder
ivedf
rom t
hel
ati
nwor
d'Mar
atus'
.Thi
smeansmer
chandi
se,
war
es,
traf
fi
ctr
adeorpl
aceofbusi
ness.

Accor
dingt
oAmer
icanMar
ket
ingAssoci
ati
on,
"Amar
keti
sanaggr
egat
edemandof
t
hepot
ent
ial
buy
ersf
orapr
oduct
/ser
vice.

Mar
ket
ing

Accor
dingt
otheAmer
icanMar
ket
ingAssoci
ati
on(
AMA)Boar
dofDi
rect
ors,
Mar
ket
ing
i
stheact
ivi
ty,
setofi
nst
it
uti
ons,
andpr
ocessesf
orcr
eat
ing,
communi
cat
ing,
del
i
ver
ing,
andexchangi
ngof
fer
ingst
hathav
eval
uef
orcust
omer
s,cl
i
ent
s,par
tner
s,andsoci
etyat
l
arge.

Concept
sofmar
ket
ingormar
ket
ingpr
ocess

1.Busi
nessent
erpr
ise:

Thest
art
ingpoi
ntofmar
ket
ingpr
ocessi
ffor
mul
ati
onofabusi
nessent
erpr
iseandt
he
pr
imeobj
ect
iveofbusi
nessi
stomakepr
ofi
tandav
oidl
oss.
prof
iti
sadr
ivi
ngf
orcei
n
under
taki
nganybusi
nessact
ivi
tybuti
tisnott
hesol
eobj
ect
iveofanybusi
ness.The
busi
nessoper
atesi
nacompet
it
iveenv
ironmentwher
ecust
omer
sar
ebecomi
ng
i
ncr
easi
ngl
ydemandi
ngandcompet
it
orsmor
eknowl
edge.Thewayabusi
nessmar
ket
s
i
t'
sbr
and,
product
sandser
vicescanmakeabi
gdi
ff
erencebet
weenbusi
nessori
ts
compet
it
ori
nget
ti
ngt
hesal
es.Thust
her
eisadi
rectr
elat
ionshi
pbet
weenef
fect
ive
mar
ket
ingandpr
ofi
tabi
l
ityoft
hebusi
nessent
erpr
ise.

2.Env
ironment
alscanni
ng:

Env
ironment
alscanni
ngher
eref
erst
ounder
standi
ngofmar
ket
,whi
chcanbedonewi
th

Af
iasul
tana
 UNI
T1-I
NTRODUCTI
ONTOMARKETI
NG

ef
fect
ivemar
ket
ingr
esear
ch.Thi
sinv
olv
esunder
standi
ngt
hedemogr
aphi
cs,
compet
it
orsanal
ysi
s,under
standi
ngcust
omerbehav
iour
.Thef
undament
alcor
efor
dev
elopmentofpr
oduct
sandmar
ket
ingpl
ani
senv
ironment
alanal
ysi
s.I
nor
dert
o
makemar
ket
ingef
fect
ive,
abusi
nessent
erpr
isemustcl
ear
lyshowt
hedi
ff
erence
bet
weeni
t'
spr
oduct
sandser
vicesf
rom i
tscompet
it
ors.

3.I
dent
if
yingneeds,
want
sanddemands

Needs,
want
sanddemandsest
abl
i
shest
hebasef
ormar
ket
ingpr
inci
ples.Ev
ent
hough
t
heyar
ever
ysi
mpl
eTer
minol
ogi
esy
ett
heypossessacompl
exmeani
ngbehi
ndt
hem.
Ther
efor
eiti
sver
ycar
eful
fort
hebusi
nessent
erpr
isest
ounder
standt
het
arget
mar
ket
'sneeds,
want
s,anddemands.

Needsar
ethebasi
chumannecessi
ti
es.Peopl
eneedf
ood,
air
,wat
er,
clot
hingand
shel
tert
osur
viv
e.

Thei
mpor
tanceanddegr
eeofneedsv
ari
esandneedsbecamewant
sbackedbya
st
rongdesi
reandobj
ect
ive.

E.
g.,
Aper
sont
rav
ell
i
ngf
rom Mumbai
toBangal
oreaneedsat
ranspor
t,nowmodeof
t
ranspor
tcomesi
ntopi
ctur
eandt
hisdependsondesi
reoft
heper
sonbackedby
v
ari
ousf
act
orssuchear
ningcapaci
ty,
impor
tanceofj
our
neyet
c.

Ont
heot
herhandwhent
hewant
sar
esuppor
tedbyt
hepur
chasi
ngpowerand
wi
l
li
ngnesst
opur
chasewant
sbecomedemands

4.Pr
oduct
sandser
vices:

I
ntoday
'scompet
it
ivemar
ketenv
ironment
,consumer
sdev
elopnewneedsandwant
s
whi
chneedt
obemetandsat
isf
ied.I
nor
dert
omeett
hese,
busi
nessf
ir
mshav
eto
l
aunchuni
quepr
oduct
sorser
vicesi
nthei
ref
for
ttor
emai
nvi
abl
eandcompet
it
ive.By
dev
elopi
ngnotj
ustpr
oduct
sandser
vicesbutauni
quev
aluepr
oposi
ti
onaf
ir
m can
cr
eat
east
rongdi
ff
erent
ial
from compet
it
orsandt
hiswi
l
lhel
pfi
rmsatat
tr
act
ingmor
e
consumer
sandachi
eveabet
terposi
ti
oni
nthecompet
it
ivemar
ket
.Pr
iort
o

Af
iasul
tana
 UNI
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NTRODUCTI
ONTOMARKETI
NG

dev
elopmentofpr
oduct
s/ser
vicesf
ir
msshoul
dassessasi
t'
saccept
abi
l
ity
,feasi
bil
i
ty
andsat
isf
act
orycapaci
tyt
oensur
eit
ssuccessi
nthemar
ket
.

5.Val
ue,
costandsat
isf
act
ion

Themosti
mpor
tantcr
it
eri
aforacust
omert
obuyorsel
ectapr
oducti
ncl
udesv
alue
whi
cht
hecust
omerder
ivesbyusi
ngandbuy
ingt
hepr
oduct
,val
uei
sascer
tai
nedby
combi
ningqual
i
ty,
ser
viceandcost
.Fur
thercostandpr
ici
ngoft
hepr
oductbecomes
v
ital
int
hebuy
ingpr
ocess,
thepr
ici
ngofpr
oductorser
vicei
sakeyel
ementi
n
det
ermi
ningt
hepr
ofi
tabi
l
ityofbusi
ness.I
fthepr
icei
stoohi
gh,
demandwi
l
lreduceand
i
fpr
icei
stool
ow,
sal
esv
olumemaynotgener
ateenoughr
evenuet
ocov
ert
hecost
s
associ
atedwi
thbusi
ness.Themor
epr
icesensi
ti
vecust
omer
sar
e,t
hemor
eyouneed
t
omoni
tory
ourcompet
it
ionandt
hemar
kett
oensur
eyour
emai
nint
hecompet
it
ive
mar
ket
.Cust
omersat
isf
act
ioni
sameasur
eofhowpr
oduct
sandser
vicessol
dbya
busi
nessmeetorexceedscust
omerexpect
ati
on.I
fthepr
oductexceedscust
omer
sat
isf
act
ion,
cust
omeri
sdel
i
ght
ed.I
fitmat
chescust
omerexpect
ati
on,
cust
omeri
s
sat
isf
iedandi
fdoesn'
tmeet
stheexpect
ati
oncust
omerl
oosest
heconf
idencei
nthe
br
andandpr
oduct
.Ther
efor
eiti
simpor
tantt
oincor
por
atev
alue,
costandsat
isf
act
ion
i
nthemar
ket
ingst
rat
egy
.

6.Exchangepr
ocess

Exchangei
sapr
ocessoft
ransf
erofgoodsorser
vicesf
rom oneent
it
ytoanot
herby
of
fer
ingsomet
hingi
nret
urn.Aper
soncanmeethi
sneedsandwant
sbypr
oduci
ng
goodsonhi
sown,
steal
i
ngt
hem f
rom out
side,
for
cingot
her
sbyi
l
legal
meansor
t
hroughexchangewi
thot
herpeopl
ewhoar
ewi
l
li
ngt
oexchangegoodsorser
vicesby
of
fer
ingsomet
hingi
nret
urn.

7.Cust
omerr
elat
ionshi
pmanagement

Themoder
nconceptofmar
ket
ingnotonl
yfocusesonsal
esbutal
sol
aysst
rong
emphasi
sonunder
standi
ngt
hepostpur
chasebehav
iouroft
hecust
omer
.Iti
s
i
mpor
tantt
oassesswhet
hert
hecust
omeri
ssat
isf
iedwi
thpr
oductorser
vicesof
fer
ed

Af
iasul
tana
 UNI
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NTRODUCTI
ONTOMARKETI
NG

t
ohi
m,sot
hatmar
ket
ercanmakenecessar
yadj
ust
mentdependi
ngont
hef
eedback
pr
ovi
dedbyt
hecust
omer
.Thi
sappr
oachwi
l
lal
sopr
ovi
deancompet
it
iveedge.

8.Cust
omeror
ient
ati
onandbehav
iour

Cust
omeror
ient
ati
onr
efer
stocust
omer
-cent
ri
cbusi
ness.Thi
smodel
prov
idesa
per
sonal
i
zedcust
omerexper
iencet
hatf
ocusesonest
abl
i
shi
ngheal
thyr
elat
ionshi
ps
bet
weenser
vicepr
ovi
der
sandconsumer
sbyi
dent
if
yingcust
omer
'sneeds.Cust
omer
or
ient
ati
onhasbecomeani
mpor
tantel
ementofmar
ket
ingconceptasi
taddsv
aluet
o
t
hepr
oduct
sorser
vicespur
chasedbyt
hem.

Funct
ionsofmar
ket
ing

Themar
ket
ingact
ivi
ti
esl
i
nki
ngt
hepr
imar
ypr
oducerandt
heul
ti
mat
econsumeroruser
r
epr
esentt
hemov
ementorf
lowoft
hepr
oduct(
possessi
on)andt
het
it
le(
owner
shi
p)t
o
t
hepr
oduct
—fr
om t
hesel
l
ert
othebuy
er.Wemayhav
esev
eral
transact
ionsi
nvol
vi
ng
t
hef
lowofowner
shi
pandpossessi
on.Thef
lowofpr
oduct
sisachi
ev­edt
hrough
t
ranspor
tandst
orage.Thef
lowof
,owner
shi
pri
ght
sisachi
evedt
hroughsal
eor
pur
chasecont
ract
s.

I
nor
dert
obr
ingaboutsucht
winf
lowsofowner
shi
pandpossessi
on,
weneed
mi
ddl
emeni
nmar
ket
ing.Theycanof
ferspeci
ali
sedser
vicesorf
unct
ionssuchas
buy
ing,
sel
l
ing,
transpor
t,st
orage,
financi
ng,
riskbear
ingandsoon.Thesemi
ddl
emen’
s
f
unct
ionsar
eal
socal
l
edmar
ket
ingf
unct
ions.

Amar
ket
ingf
unct
ioni
saspeci
ali
sedact
ivi
typer
for
medi
nmar
ket
ing.Amar
ket
ing
f
unct
ioni
snecessar
ytot
akegoodsf
rom t
hepl
aceofor
igi
ntot
hepl
aceof
consumpt
ion.Thusi
tisanactoroper
ati
onorser
vicei
nor
dert
oli
nkt
heor
igi
nal
pr
oducerandt
heul
ti
mat
econsumer
.Themar
ket
ingf
unct
ionsar
ebui
l
tar
oundt
he
pr
ocessofmar
ket
ingi
nvol
vi
ngconcent
rat
ion,
equal
i
sat
ionanddi
sper
sion.

Cl
arkandCl
arkcl
assi
fi
edmar
ket
ingf
unct
ionsi
ntot
hreemai
ndi
vi
sions:

1.Mar
ket
ingf
unct
ionsi
nvol
vi
ngexchange,
e.g.
,sel
l
ingandbuy
ing.

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iasul
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 UNI
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NTRODUCTI
ONTOMARKETI
NG

2.Mar
ket
ingf
unct
ionsi
nvol
vi
ngphy
sical
suppl
y,e.
g.,
stor
ageandwar
ehousi
ng,
and
t
ranspor
tat
ion.

3.Mar
ket
ingf
unc­t
ionsact
ingasai
dst
othef
unct
ionsofexchangeandf
unct
ionsof
phy
sical
suppl
y,e.
g.,
risk-
bear
ingori
nsur
ance,
financi
ng,
standar
di­sat
ionandgr
adi
ng,
andmar
ket
ingr
esear
chandi
nfor
mat
ion.

Mar
ket
ingi
nvol
vest
hreebasi
cact
ivi
ti
es,
viz.1.Concent
ra­t
ion,
2.Di
sper
sion,
3.
Equal
i
sat
ion.Thesef
unct
ionsar
eper
for
medbymi
ddl
emensuchasmer
chant
sand
mer
cant
il
eagent
s.

Funct
ion#1.Exchange(
Inv
olv
ingTr
ansf
erofTi
tl
e):

Tr
ansf
erofowner
shi
pist
hepr
imar
yobj
ect
iveoft
hemar
ket
­ingpr
ocess.Hence,
per
for
manceofbuy
ingandsel
l
ingf
unct
ionsassumesauni
quei
mpor
tance.Letus
descr
ibebr
ief
lymer
chandi
sing,
buy
ingandsel
l
ingf
unct
ions.

a.Mer
chandi
sing:

Mer
chandi
singcov
erst
heact
ivi
ti
esi
nvol
vedi
npl
anni
ngandsuper
visi
ngt
headj
ust
ment
ofapr
oductl
i
net
ocust
omerwant
sandneeds.I
tisessent
ial
inwhol
esal
eandr
etai
l
t
rade.Whati
sboughthast
ober
esol
datapr
ofi
t.Mer
chandi
singf
unct
iont
ri
est
o
anal
yset
hemar
ketandt
hepr
oduct
stobesol
d.

Ont
hebasi
soft
hisanal
ysi
sofdemand,
mar
ket
erev
olv
est
hebestcombi
nat
ionof
r
esour
cesandmet
hodsi
nor
dert
oachi
evemaxi
mum pr
ofi
tabl
esal
es.Mer
chandi
s­i
ng
f
unct
ional
onecanassur
ether
ightpr
oduct
,att
her
ightt
ime,
att
her
ightpl
ace,
att
he
r
ightpr
ice,
wit
hther
ightamountofgoodst
other
ightcust
omer
s.

Mer
chandi
singi
sthatpar
toft
hemar
ket
ingpr
ocesswhi
chenabl
esust
otakedeci
sions
onwhatt
opr
oduceorpr
ocur
e,whatpr
oducti
stobeaddedt
oordel
etedf
rom t
he
pr
esentpr
oductl
i
ne.I
tenabl
espr
operco-
ordi
nat
ionofsuppl
ywi
thdemand.

b.Buy
ing(
Assembl
i
ng)
:

Af
iasul
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 UNI
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NTRODUCTI
ONTOMARKETI
NG

Buy
ingi
sonesi
deoft
heequat
ionofexchange—t
hecount
er­par
tofsel
l
ingt
heot
her
si
deofexchange.I
tiscar
ri
edoutbyal
lmar
ket
ers-
themanuf
act
urer
,thewhol
esal
er
andt
her
etai
l
er.Thebuy
ingf
unct
ioni
nvol
vespl
anni
ngofpur
chases,
sel
ect
ionofpr
oper
sour
cesofsuppl
y,sel
ect
ionofgoodst
obesol
d,ort
obeusedi
nbusi
ness,
assembl
i
ng
ofgoodsi
nri
ghtquant
it
y,att
her
ightpl
aceandt
imeandatt
her
ightpr
ice.I
naf
ormal
exchange,
buy
erhast
onegot
iat
ethet
ermsofpr
ice,
pay
ment
,del
i
ver
y,et
c.,
andsecur
e
nor
mal
transf
eroft
it
lei
nhi
sfav
ourt
hroughacont
ractofpur
chase.

Thepr
imar
ypur
poseofbuy
ingi
stoassembl
egoodsupondemand,
forr
esal
eorusei
n
pr
oduct
ionorper
sonal
consumpt
ion.Thebuy
ingf
unct
ionpl
aysav
eryi
mpor
tantr
ole
whenf
ashi
onorst
ylei
sdomi
nanti
nmar
ket
ing.Buy
ingski
l
lisessent
ial
notonl
yin
anal
ysi
ngt
hemar
ketdemandbutal
soi
nbuy
ingt
her
equi
sit
esuppl
i
es.

c.Sel
l
ing:

Sel
l
ingandbuy
ingmustcompl
ementeachot
her
.Theyar
ethet
wosi
desoft
heequat
ion
oft
heexchange.Al
lmar
ket
ingef
for
tsr
evol
vear
oundt
hesel
l
ingandbuy
ingf
unct
ions.
Thesel
l
ingf
unc­t
ioni
smosti
mpor
tanti
nanybusi
ness.Thepr
imar
yobj
ect
ivei
n
mar
ket
ingi
stosel
lgoodsorser
vicesatapr
ofi
t.

Thesel
l
ingf
unct
ioni
nvol
vesanumberofsubsi
diar
yact
ivi
ti
es-(
a)pr
oductpl
anni
ngand
dev
elopmenti
.e.
,mer
chandi
sing,
(b)sear
chofbuy
ers,
(c)cr
eat
ionofdemandt
hrough
al
lmeansofpr
omot
ion,
(d)negot
iat
ionoft
ermsofsal
esuchasqual
i
ty,
quant
it
yand
pr
iceand(
e)sal
econt
ractl
eadi
ngt
otr
ansf
eroft
it
leandpossessi
onofgoods.

Funct
ion#2.Phy
sical
Suppl
ya

a.Tr
anspor
tat
ion:

Thef
unct
ionsofexchange,
viz.
,buy
ingandsel
l
ingf
unct
ionspr
ovi
deonl
ytr
ansf
erof
t
it
leorowner
shi
pri
ghtf
rom asel
l
ert
oabuy
er.Changeofowner
shi
pisusual
l
y
accompani
edbychangeofpossessi
on.Tr
anspor
tof
fer
sthi
spar
ti
cul
arser
viceanda
buy
ercanenj
oyt
hephy
sical
possessi
ononl
ywhent
hegoodsboughtar
edul
y

Af
iasul
tana
 UNI
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NTRODUCTI
ONTOMARKETI
NG

t
ranspor
tedf
rom asel
l
ert
oabuy
er.

Tr
anspor
tat
ioni
sthemov
ementofpr
oduct
sfr
om t
hecent
resofpr
oduct
iont
ocent
res
ofpr
ocessi
ngormanuf
act
uri
ngandt
henf
rom t
hef
act
ori
est
othemar
ket
s(r
ightupt
o
consumer
s’r
esi
­dences)
.Thusi
tisanessent
ial
mar
ket
ingser
viceatev
eryst
agei
n
t
hef
lowofgoodsdur
ingconcent
rat
ionaswel
lasdi
sper
sioni
nthepr
ocessof
mar
ket
ing.

b.St
orage:

St
oragecr
eat
est
imeut
il
it
ybyhol
dingandpr
eser
vingst
ockofgoodsf
ordi
ff
erent
per
iodsoft
imedur
ingt
hemar
ket
ingpr
ocess.St
orageenabl
esequal
i
sat
ionpr
ocess
ov
erper
iodoft
ime,
wher
east
ranspor
tenabl
esequal
i
sat
ionofsuppl
i
espl
ace-
wise.
Hence,
trans­por
tandst
oragef
aci
l
itat
ethef
unct
ionofphy
sical
dist
ri
but
ion.Al
mostal
l
goodsent
eri
ngt
hemar
ketmustbest
oredatnumer
ouspoi
ntsi
nthej
our
neyofgoods
f
rom t
hepr
imar
ypr
oducert
otheul
ti
mat
econsumer
.St
oragei
sessent
ial
inbot
h
agr
icul
tur
almar
ket
ingandmar
ket
ingofmanuf
act
uredpr
oduct
s.Mar
ket
erscaneasi
l
y
adj
ustsuppl
ywi
thdemand(
place-
wiseandt
ime-
wise)wi
tht
hehel
poft
ranspor
tand
war
ehousi
ngandt
her
ebyconsumer
scanhav
epr
icest
abi
l
ityi
nal
lmar
ket
sandatal
l
t
imes.Howev
er,
costoft
ranspor
tandwar
ehousi
ngpl
aysasi
gni
fi
cantr
olei
nthet
otal
mar
ket
ingcost
.Hence,
phy
sical
dist
ri
but
ionhasassumedgr
eati
mpor
tancei
nthe
pr
ocessofmar
ket
ing.

Funct
ion#3.Faci
l
itat
ingMar
ket
ingFunct
ions:

I
nthepr
ocessofmar
ket
ingatev
eryst
agei
nthemachi
ner
yofdi
str
ibut
ion/
assembl
i
ng
weneedanumberofauxi
l
iar
yorf
aci
l
itat
ingf
unct
ionst
oensur
ethesmoot
hfl
owof
goods.Thesef
unct
ionshel
pthepr
imar
yfunct
ionsofbuy
ing,
sel
l
ing,
transpor
tand
st
orage.

Thei
mpor
tantf
aci
l
itat
ingf
unct
ionssmoot
heni
ngt
hemar
ket
ingpr
ocessar
e:

1.St
andar
disat
ion,

Af
iasul
tana
 UNI
T1-I
NTRODUCTI
ONTOMARKETI
NG

2.Fi
nanci
ng,

3.Ri
skmanagement
,

4.Mar
keti
nfor
mat
ion,

5.Pr
omot
iondev
icessuchas-per
sonal
sel
l
ing,
adv
ert
isi
ng,
packagi
ng,
brandi
ngand
af
ter
-sal
eser
vices.

1.St
andar
disat
ionandGr
adi
ng:

St
andar
disat
ionmeanspr
escr
ibi
ngbasi
cli
mit
sorgr
adesont
hebasi
sofwhi
ch
pr
oduct
smaybesor
tedandt
owhi
chpr
oducerofgoodsmustconf
orm.Gr
adi
ngi
sthe
act
ual
sor
ti
ngofasuppl
yofagi
vencommodi
tyasperspeci
fi
edorf
ixednor
msor
st
andar
ds.Pl
easenot
ethatst
andar
disat
ionpr
ecedesgr
adi
ngandbot
har
ecl
osel
y
r
elat
edact
ivi
ti
es.

St
andar
disat
ioni
snecessar
yinagr
icul
tur
alaswel
lasmanuf
act
uredpr
oduct
s.
St
andar
disat
ionandgr
adi
ngar
eimpor
tantmar
ket
ingf
unct
ionsast
heyenabl
ewi
deni
ng
ofmar
ket
s.Buy
ingandsel
l
ingbecomeeasi
er.Consumerconf
idencecanbesecur
ed.
Wecanhav
euni
for
m qual
i
ty,
size,
type,
etc.Mar
ket
ingcost
sal
socanber
educed
consi
der
abl
y.

2.Fi
nanci
ng:

Fi
nanci
ngi
sthesel
f-
bloodofi
ndust
ry.I
tisr
equi
redf
orpr
oduct
ionaswel
lasf
or
mar
ket
ing.I
nthemoder
nmar
ket
,exchangeoper
ati
onsar
ebasedonmoneyandcr
edi
t.
Ther
eisacer
tai
nti
mei
nter
val
bet
weent
hepur
chaseofr
awmat
eri
alsandt
he
manuf
act
uri
ngoff
ini
shedpr
oduct
sandf
rom t
het
imegoodsar
emadet
il
ltheconsumer
pay
sfort
hem.

Thef
inanci
ngf
unct
ioni
nmar
ket
ingi
nvol
vest
heuseofcapi
tal
tof
inancet
hemar
ket
ing
agenci
es(
whol
esal
ersandr
etai
l
ers)i
nthei
rvar
iousact
ivi
ti
es,
plust
hef
inanci
ngof
goodsmov
ingi
ntoandt
hrought
hechannel
sofdi
str
ibut
ion.

Af
iasul
tana
 UNI
T1-I
NTRODUCTI
ONTOMARKETI
NG

3.Ri
skManagement
:

I
nmar
ket
ingasi
not
herf
iel
dsofbusi
nesst
her
ear
enumer
ousr
isksort
hechancesof
l
ossordamage.Wehav
ethr
eemaj
ormar
ket
ingr
isks-(
i)Phy
sical
lossordamageof
goods,
(ii
)Economi
cJossofv
aluesi
ngoods,
(ii
i
)Cr
edi
tlosses.Mar
ket
erscansecur
e
r
egul
ari
nsur
ancef
aci
l
iti
est
opr
otectt
hemsel
vesagai
nstphy
sical
lossandcr
edi
tloss.
Thought
her
iskofl
osscannotbeel
i
minat
ed,
itcanatl
eastbet
ransf
err
edt
oinsur
ance
compani
esbyi
nsur
ancepol
i
cies.

4.Mar
ket
ingI
nfor
mat
ion:

Mar
ket
ingdeci
si
onsar
enobet
tert
hant
hef
act
suponwhi
cht
heyar
ebased.
I
nfor
mat
ioni
sav
ital
resour
cei
nanybusi
ness.I
thast
obecol
l
ect
ed,
processedand
i
nter
pret
ed.Deci
si
onsar
ebasedonf
act
sandf
igur
es.Mar
keti
ntel
l
igencemeans
spr
eadi
ngofmar
keti
nfor
mat
ionamongbuy
ersandsel
l
ers.

Asmar
ket
ingcondi
ti
onsar
edy
nami
candt
heymayaf
fecti
ndust
ryi
nanywayandt
o
anydegr
ee,
producer
sar
eint
erest
edi
nsecur
ingup-
to-
dat
einf
ormat
iononchang­i
ng
condi
ti
onsofsuppl
y,demandandpr
icesr
uli
ngi
nthemar
ket
s.

5.Pr
omot
ion(
Mar
ket
ingCommuni
cat
ions)
:

Theul
ti
mat
epur
poseofmar
ket
ingi
stomakesal
es.Al
lty
pesofmar
ket
ing
communi
cat
ionsar
eessent
ial
toest
abl
i
shaf
lowofunder
standi
ngorcommuni
cat
ion
bet
weensel
l
ersandbuy
ers.Pr
o­mot
ional
act
ivi
ti
escanbegr
oupedi
ntot
hreebasi
c
cat
egor
ies-(
i)per
sonal
sel
l
ing,
(ii
)adv
ert
isi
ngandpubl
i
cit
yand(
ii
i)speci
ali
sedsal
es
pr
omot
ion.Moder
nmar
ket
ingent
ir
elydependsupont
hesef
ormsofmar
ket
ing
communi
cat
ions.

pr
omot
ioni
sani
ntegr
alpar
tofsel
l
ingf
unct
ion.Atpr
esenti
thasassumedauni
que
i
mpor
tancei
nmar
ket
ing.I
tisal
sor
egar
dedasat
ool
ofnon-
pri
cecompet
it
ion.Br
andi
ng
andpackagi
ngar
epower
ful
meansofadv
er­t
isi
ngormar
ket
ingcommuni
cat
ion.Buy
er
behav
iourcanbef
avour
a­bl
yinf
luencedonl
ythr
oughpr
omot
ion.Mar
ket
erscan

Af
iasul
tana
 UNI
T1-I
NTRODUCTI
ONTOMARKETI
NG

i
ncr
easeandmai
ntai
nthei
rmar
ketshar
eonl
ythr
oughef
fect
ivepr
omot
ionor
per
suasi
vecommuni
cat
ion.

I
mpor
tanceofMar
ket
ing–I
nDev
elopi
ngCount
ri
es

Themaj
ori
mpor
tanceofmar
ket
ingi
ndev
elopi
ngcount
ri
esar
egi
venasunder
:

1.I
mpr
ovedQual
i
tyofLi
fe:

Theact
ivi
ti
est
hatmar
ket
ersandot
her
sint
heeconomyofmostcount
ri
esper
for
ms,
pr
eci
sel
ydev
elopedones,
hel
ptoi
dent
if
yandsat
isf
yconsumer
s’needs.Thi
sis
becausemostconsumer
scanal
way
str
acet
hei
rknowl
edgeandper
suasi
ont
o
pat
roni
set
hepr
oduct
stheyf
eel
muchdependentonsuchmar
ket
ingdomi
nat
edst
imul
i
asadv
ert
isi
ng,
per
sonal
sel
l
ing,
sal
espr
omot
ion,
etc.

2.Dev
elopmentofSmal
l
-Scal
eIndust
ri
es:

Expansi
onandgr
owt
hofsmal
l
-scal
eindust
ri
esi
nadev
elopi
ngcount
ryl
i
keI
ndi
aleads
t
othegr
owt
hoft
heeconomyasawhol
e.Mar
ket
inghel
pst
ofi
nd-
outt
heneedoft
he
peopl
eandt
hisneedcanbeconv
ert
edi
ntopr
oductorser
vice.

3.Dev
elopmentofManager
sandEnt
repr
eneur
s:

Thedev
elopmentofmanager
sandent
repr
eneur
sint
hesoci
etyi
sleadbydev
elopment
i
nmar
ket
ingsect
or,
indi
rect
ly.Thel
atentt
alentoft
hepeopl
eint
hesoci
etycomes-
out
i
nmar
ket
ing.I
nadev
elopi
ngcount
ryl
i
keI
ndi
a,t
hist
ypeofl
atentt
alentofy
oungpeopl
e
i
srequi
redt
obebr
oughtoutf
ort
hegr
owt
hofcount
ryasawhol
e.

4.I
ndust
ri
alDev
elopment
:

Themoder
nconceptofmar
ket
ingmeantt
hat
,goodsshoul
dbepr
oducedkeepi
ngi
n
mi
ndt
heneedsoft
heconsumer
s.Thosecount
ri
eswhoadoptt
hismoder
nconceptof
pr
oduci
ngt
hosegoodsandser
viceswhi
char
eneededbyt
heul
ti
mat
econsumer
sor
cust
omer
swi
l
lsucceed.I
nIndi
a,wher
ether
esour
cesar
escar
cei
tshoul
dbel
ooked
t
hatt
heser
esour
cesar
enotwast
edandar
eputt
oabet
teruse.

Af
iasul
tana
 UNI
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NTRODUCTI
ONTOMARKETI
NG

5.Pr
ovi
deJobOppor
tuni
ti
es:

Mostwel
li
ndust
ri
ali
sedcount
ri
esandemer
gingmar
ket
spr
ovi
dev
astoppor
tuni
ti
esof
j
ob/
wor
ktomi
l
li
onsofpeopl
eal
lov
ert
hewor
ld.I
nvest
orsaswel
lasent
repr
eneur
s
hav
evastoppor
tuni
tyt
oexpandt
hroughpr
ivat
eendeav
our
sinsuchcount
ri
es.

6.Mar
ket
ingI
mpactonPeopl
e:

Bey
ondadoubt
,al
lov
ert
hewor
ldmar
ket
ingact
ivi
ti
esar
eaf
fect
edbypeopl
e’
sbel
i
efs,
at
ti
tudes,
li
fest
yles,
consumpt
ionpat
ter
n,pur
chasebehav
iour
,income,
etc.Mar
ket
ers
hel
por
gani
sat
ionsandbusi
nessest
odev
eloppr
oduct
s,pr
omot
e,pr
iceanddi
str
ibut
e
t
hem.

7.Accel
erat
ionofEconomi
cGr
owt
h:

Consumpt
ioni
sencour
agedbymot
ivat
ingpeopl
einacount
ryt
opat
roni
segoods
pr
oducedt
omeett
hei
rident
if
iedneeds.Whenpeopl
ebuygoodst
hatar
epr
oducedi
na
count
ry,
ther
eist
het
endencyt
hatpr
oducer
swi
l
lequal
l
yincr
easepr
oduct
iont
omeet
-up
wi
thf
utur
edemands.

8.Cont
ri
but
etoGr
ossNat
ional
Product
:

Thest
rengt
hofanyeconomyi
sdet
ermi
nedbyi
tsabi
l
ityt
ogener
atet
her
equi
red
i
ncomewi
thi
nagi
venf
iscal
yearorper
iod.Thus,
suchacount
ry’
sGNPmustappr
eci
ate
ov
ert
ime.Mar
ket
ingi
sthepi
votandl
i
fe-
wir
eofanyeconomy
,becauseal
lot
her
act
ivi
ti
esofanor
gani
sat
iongener
atecost
s,andonl
ymar
ket
ingact
ivi
ti
esbr
ingi
nthe
muchneededr
evenues.

9.I
mpr
ovedQual
i
tyofPr
oduct
:

Thei
mpor
tanceofmar
ket
ingi
snotbei
ngov
er-
emphasi
zed,
becausecont
empor
ary
f
ir
msandmul
ti
nat
ional
shav
enowseent
heneedt
opr
oducequal
i
typr
oduct
s.Thi
sis
becauset
heyhav
ereal
l
ycapi
tal
i
sedonqual
i
tyi
mpr
ovementi
npr
oduct
stoenhancet
he
dy
nami
cconsumer
s’questf
orgoodsandser
vices.

Af
iasul
tana
 UNI
T1-I
NTRODUCTI
ONTOMARKETI
NG

10.Lar
ge-
Scal
eConsumpt
ions:

Consumpt
ionofgoodsonal
argescal
eisi
mpor
tantf
orr
api
deconomi
cdev
elopment
.
Thatconsumpt
ioncanber
aisedt
hroughmar
ket
ing.Dr
uckercoi
nedt
hewor
d‘mul
ti
pli
er
ef
fect
’thatmeans.I
fconsumpt
ioncanber
aisedt
hroughmar
ket
ing,
lar
ge-
scal
e
i
ndust
ri
eswi
l
lcome-
uppr
oduci
nggoodsi
nbul
k.

Nat
ureofmar
ket
ing

1.I
tisanEconomi
cFunct
ion:
Itembr
acesal
lthebusi
nessact
ivi
ti
esi
nvol
vedi
nget
ti
ng
goodsandser
vices,
from t
hehandsofpr
oducer
sint
othehandsoff
inal
consumer
s.
Thebusi
nessst
epst
hroughwhi
chgoodspr
ogr
essont
hei
rwayt
ofi
nal
consumer
sis
t
heconcer
nofmar
ket
ing.

2.I
tisCust
omerOr
ient
ed:
Itexi
stst
oident
if
yandsat
isf
ythewant
sofpr
esentand
pot
ent
ial
consumer
s.Cust
omeri
sthef
ocusofal
lmar
ket
ingact
ivi
ti
es.

3.I
tisaManager
ial
funct
ion:
Accor
dingt
omanager
ial
orsy
stemsappr
oach–“
Iti
sthe
combi
nat
ionofact
ivi
ti
esdesi
gnedt
opr
oducepr
ofi
tthr
oughascer
tai
ning,
creat
ing,
st
imul
ati
ng,
andsat
isf
yingt
heneedsand/
orwant
sofasel
ect
edsegmentoft
he
mar
ket
.”

4.I
tisaSy
stem:
Anot
heri
mpor
tantchar
act
eri
sti
cofmar
ket
ingi
sit
sfunct
ionasa
sy
stem.I
tisasy
stem compr
isi
ngsev
eral
sub-
syst
ems.Undermar
ket
ingi
nput
sar
e
dr
awnf
rom t
hesoci
etyandconv
ert
edi
ntoout
put
swhi
char
esuppl
i
edt
othesoci
ety
.

5.Mar
ket
ingi
sCr
eat
ive:
Itcr
eat
est
ime,
placeandpossessi
onut
il
it
ies.Ti
meut
il
it
yis
cr
eat
edbypr
eser
vinggoodsf
orusei
nfut
ure.Pl
aceut
il
it
yiscr
eat
edbycar
ryi
nggoods
t
opl
acewher
etheyar
eneededt
hemost
.Itcr
eat
espossessi
onut
il
it
ybyt
ransf
err
ing
pr
oduct
sandser
vicesf
rom pr
oducert
ocust
omer
.Exchangepr
ocessbet
weenbuy
er
andsel
l
eri
stheessent
ial
elementi
nmar
ket
ing.

6.I
tisaCont
inuousPr
ocess:
Iti
snotani
sol
ated,
stat
icpr
ocessbuti
sacompl
ex,
cont
inuousandi
nter
rel
atedpr
ocess.I
tinv
olv
escont
inuouspl
anni
ng,
impl
ement
ati
on

Af
iasul
tana
 UNI
T1-I
NTRODUCTI
ONTOMARKETI
NG

andcont
rol
.Iti
sani
mpor
tantf
unct
ional
areaoft
hemanagement
.

ScopeofMar
ket
ing:

1.St
udyofConsumerWant
sandNeeds

Goodsar
epr
oducedt
osat
isf
yconsumerwant
s.Ther
efor
est
udyi
sdonet
oident
if
y
consumerneedsandwant
s.Theseneedsandwant
smot
ivat
esconsumert
opur
chase.

2.St
udyofConsumerbehav
iour

Mar
ket
ersper
for
msst
udyofconsumerbehav
iour
.Anal
ysi
sofbuy
erbehav
iourhel
ps
mar
ket
eri
nmar
ketsegment
ati
onandt
arget
ing.

3.Pr
oduct
ionpl
anni
nganddev
elopment

Pr
oductpl
anni
nganddev
elopmentst
art
swi
tht
hegener
ati
onofpr
oducti
deaandends
wi
tht
hepr
oductdev
elopmentandcommer
cial
i
sat
ion.Pr
oductpl
anni
ngi
ncl
udes
ev
ery
thi
ngf
rom br
andi
ngandpackagi
ngt
opr
oductl
i
neexpansi
onandcont
ract
ion.

4.Pr
ici
ngPol
i
cies

Mar
ket
erhast
odet
ermi
nepr
ici
ngpol
i
ciesf
ort
hei
rpr
oduct
s.Pr
ici
ngpol
i
ciesdi
ff
ers
f
orm pr
oductt
opr
oduct
.Itdependsont
hel
evel
ofcompet
it
ion,
productl
i
fecy
cle,
mar
ket
inggoal
sandobj
ect
ives,
etc.

5.Di
str
ibut
ion

St
udyofdi
str
ibut
ionchannel
isi
mpor
tanti
nmar
ket
ing.Formaxi
mum sal
esandpr
ofi
t
goodsar
erequi
redt
obedi
str
ibut
edt
othemaxi
mum consumer
satmi
nimum cost
.

6.Pr
omot
ion

Pr
omot
ioni
ncl
udesper
sonal
sel
l
ing,
sal
espr
omot
ion,
andadv
ert
isi
ng.Ri
ghtpr
omot
ion
mi
xiscr
uci
ali
naccompl
i
shmentofmar
ket
inggoal
s.

7.ConsumerSat
isf
act
ion

Af
iasul
tana
 UNI
T1-I
NTRODUCTI
ONTOMARKETI
NG

Thepr
oductorser
viceof
fer
edmustsat
isf
yconsumer
.Consumersat
isf
act
ioni
sthe
maj
orobj
ect
iveofmar
ket
ing.

8.Mar
ket
ingCont
rol

Mar
ket
ingaudi
tisdonet
ocont
rol
themar
ket
ingact
ivi
ti
es.

MARKETI
NGENVI
RONMENT

Mar
ket
ingenv
ironmentmeanst
hemar
ketsi
tuat
ion/
atmospher
ewi
thi
nwhi
cha
busi
nessent
erpr
isehast
ooper
ate.

Accor
dingt
oPhi
l
ipKot
ler
,―t
hecompany
‘smar
ket
ingenv
ironmenti
smadeupoft
he
sect
orsandf
orcesout
sidet
hef
ir
m‘smar
ket
ingf
unct
ionwhi
chi
nfr
ingeupont
heabi
l
ity
ofmar
ket
ingmanagementt
odev
elopandmai
ntai
nasuccessf
ulr
elat
ionshi
pwi
tht
he
f
ir
m‘st
argetaudi
ence.

Mar
ket
ingenv
ironmenti
sthesum t
otal
ofpol
i
tical
,economi
c,soci
al,
technol
ogi
cal
and
ot
herf
orceswhi
chmov
ear
oundt
hebusi
nessent
erpr
ise.

FACTORSAFFECTI
NGMARKETI
NGENVI
RONMENT

THEMI
CROENVI
RONMENT

Mi
croenv
ironmentconsi
stsoft
heact
orscl
oset
othecompanyt
hataf
fecti
tsabi
l
ityt
o
ser
vet
hecompany
,suppl
i
ers,
mar
ket
ingi
nter
medi
ari
es,
cust
omermar
ket
s,compet
it
ors,
andpubl
i
csandi
tscust
omer
s,.Thesefact
orsar
eshowni
ndi
agr
am bel
ow:

1.Company

2.Suppl
i
ers

3.I
nter
medi
ari
es

4.Compet
it
ion

5.Publ
i
cs

Af
iasul
tana
 UNI
T1-I
NTRODUCTI
ONTOMARKETI
NG

6.Cust
omer
s

1.TheCompany

I
ndesi
gni
ngmar
ket
ingst
rat
egi
es,
mar
ket
ingdi
vi
si
onmustt
akeot
hercompany
’s
di
vi
sionsi
ntoaccount
.(R&D,
Pur
chasi
ng,
oper
ati
ons,
finance,
product
ionet
c.)
.Al
lof
t
hesei
nter
rel
atedgr
oupsf
ormt
hei
nter
nal
env
ironment
.Al
lgr
oupsshoul
dwor
kin
har
monyt
opr
ovi
desuper
iorcust
omerv
alueandr
elat
ionshi
ps.

2.Suppl
i
ers

Suppl
i
ersar
eot
herbusi
nessor
gani
sat
ionsandi
ndi
vi
dual
swhopr
ovi
det
heor
gani
sat
ion
wi
thr
awmat
eri
als,
par
ts,
component
s,suppl
i
esorser
vicesr
equi
redt
opr
oduceand
suppl
ypr
oduct
stocust
omer
s.Suppl
i
ersf
orm ani
mpor
tantl
i
nki
ntheor
gani
sat
ions
ov
eral
lcust
omerv
aluedel
i
ver
ysy
stem.Suppl
i
erpr
obl
emscanser
iousl
yaf
fect
mar
ket
ing.Mar
ket
ingmanager
smustwat
chsuppl
yav
ail
abi
l
ity
—suppl
yshor
tagesor
del
ays,
laborst
ri
kes,
andot
herev
ent
scancostsal
esi
ntheshor
trunanddamage
cust
omersat
isf
act
ioni
nthel
ongr
un.

3.
Int
ermedi
ari
es

Manyor
gani
sat
ionsr
elyonmar
ket
ingi
nter
medi
ari
est
oensur
ethatt
hei
rpr
oduct
sreach
t
hef
inal
consumer
.Mar
ket
ingi
nter
medi
ari
eshel
pthecompanyt
opr
omot
e,sel
l
,and
di
str
ibut
eit
spr
oduct
stof
inal
buy
ers.Someor
gani
sat
ionssuppl
ydi
rect
lyt
other
etai
l
er
whi
l
stot
her
suseacompl
ex“
chai
n”i
ncl
udi
ngi
nter
medi
ari
essuchaswhol
esal
ers,
agent
sanddi
str
ibut
ors.

Mar
ket
ersr
ecogni
zet
hei
mpor
tanceofwor
kingwi
tht
hei
rint
ermedi
ari
esaspar
tner
s
r
athert
hansi
mpl
yaschannel
sthr
oughwhi
cht
heysel
lthei
rpr
oduct
s.I
tmustpar
tner
ef
fect
ivel
ywi
thmar
ket
ingi
nter
medi
ari
est
oopt
imi
zet
heper
for
manceoft
het
otal
sy
stem.Li
kesuppl
i
ers,
mar
ket
ingi
nter
medi
ari
esf
orm ani
mpor
tantcomponentoft
he
or
gani
sat
ionov
eral
lval
uedel
i
ver
ysy
stem.

Af
iasul
tana
 UNI
T1-I
NTRODUCTI
ONTOMARKETI
NG

4.Compet
it
ion

Themar
ket
ingconceptst
atest
hatt
obesuccessf
ul,
anor
gani
sat
ionmustpr
ovi
de
gr
eat
ercust
omerv
alueandsat
isf
act
iont
hani
tscompet
it
ors.Mar
ket
ersmustgai
n
st
rat
egi
cadv
ant
agebyposi
ti
oni
ngt
hei
rof
fer
ingsst
rongl
yagai
nstcompet
it
ors’
of
fer
ingsi
nthemi
ndsofconsumer
s.

5.Publ
i
csTheor
gani
sat
ion’
smi
croenv
ironmental
soi
ncl
udesv
ari
ouspubl
i
cs.Apubl
i
c
i
sanygr
oupt
hathasanact
ual
orpot
ent
ial
impactonanor
gani
sat
ion’
sabi
l
ityt
o
achi
evei
tsobj
ect
ives.Ther
angeofpubl
i
cisasf
oll
ows:

Fi
nanci
alpubl
i
cs-i
nfl
uencet
hecompany
’sabi
l
ityt
oobt
ainf
unds.

Medi
apubl
i
cs-car
rynews,
feat
ures,
andedi
tor
ial
opi
nion.

Gov
ernmentpubl
i
cs-Managementmustt
akegov
ernmentdev
elopment
sint
oaccount
.

Ci
ti
zen-
act
ionpubl
i
cs-Acompany
’smar
ket
ingdeci
sionsmaybequest
ionedby
consumeror
gani
zat
ions,
env
ironment
algr
oups,
etc.

Local
publ
i
cs-i
ncl
udenei
ghbor
hoodr
esi
dent
sandcommuni
tyor
gani
zat
ions.

Gener
alpubl
i
c-Thegener
alpubl
i
c’si
mageoft
hecompanyaf
fect
sit
sbuy
ing.

I
nter
nal
publ
i
cs-i
ncl
udewor
ker
s,manager
s,v
olunt
eer
s,andt
heboar
dofdi
rect
ors.

5.Cust
omer
s

Asdi
scussedpr
evi
ousl
y,Cust
omer
sar
ecr
uci
alandmosti
mpor
tantact
orsi
nthe
or
gani
sat
ion’
smi
croenv
ironment
.Inacommer
cial
env
ironment
,nocust
omer
smeans
nobusi
ness.Anor
gani
sat
ionshoul
dbeconcer
nedaboutt
heconst
ant
lychangi
ng
r
equi
rement
sofi
tscust
omer
sandshoul
dkeepi
ntouchwi
tht
hesechangi
ngneedsby
desi
gni
ngandi
mpl
ement
inganappr
opr
iat
einf
ormat
iongat
her
ingsy
stem.

Theor
gani
sat
ioncanonl
yinf
luencet
hei
rdeci
sionsbyof
fer
ingpr
oduct
sandser
vices
t
hatwoul
ddel
i
ghtt
hem.Thus,
ident
if
ying,
ant
ici
pat
ingandsat
isf
ying/
del
i
ght
ingt
hei
r

Af
iasul
tana
 UNI
T1-I
NTRODUCTI
ONTOMARKETI
NG

r
equi
rement
sar
eacr
uci
ali
ssuef
ormar
ket
ers.

Macr
oEnv
ironment

Themacr
oenv
ironmenti
ncl
udest
hemaj
orsoci
etal
for
cest
hataf
fectnotonl
ythe

or
gani
sat
ion,
butal
sooni
tscompet
it
orsandonel
ement
sint
hemi
cro-
env
ironment
.

Themacr
oenv
ironmentt
endst
obehar
dert
oinf
luencet
hant
hemi
croenv
ironment
,but
t
hisdoesnotmeant
hator
gani
sat
ionsmustsi
mpl
yremai
npassi
ve;
thei
nabi
l
ityt
o
cont
rol
doesnoti
mpl
ythei
nabi
l
ityt
oinf
luence.I
tisdenot
edbyt
hePESTEELf
orces.

Pol
i
tical
Env
ironment

Economi
cEnv
ironment

Soci
alandCul
tur
alEnv
ironment

Technol
ogi
cal
Env
ironment

Ecol
ogi
cal
Env
ironment

Et
hical
Env
ironment

Legal
Env
ironment

1.Pol
i
tical
Env
ironment

Thepol
i
tical
env
ironmentcanbeoneoft
hel
esspr
edi
ctabl
eel
ement
sinan
or
gani
sat
ion’
smar
ket
ingenv
ironment
.Mar
ket
ersneedt
omoni
tort
hechangi
ngpol
i
tical
env
ironmentbecausepol
i
tical
changescanpr
ofoundl
yaf
fectaf
ir
m’smar
ket
ing.

Thepol
i
tical
env
ironmentconsi
stsofl
aws,
gov
ernmentagenci
es,
andpr
essur
egr
oups
t
hati
nfl
uenceandl
i
mitv
ari
ousor
gani
zat
ionsandi
ndi
vi
dual
sinagi
vensoci
ety
.

2.Economi
cEnv
ironment

Af
iasul
tana
 UNI
T1-I
NTRODUCTI
ONTOMARKETI
NG

Theeconomi
cenv
ironmentconsi
stsoff
act
orst
hataf
fectconsumerpur
chasi
ngpower
andspendi
ngpat
ter
nsandi
sbasi
cal
l
yaboutt
hel
evel
ofdemandi
ntheeconomyandi
s
t
hemostv
isi
bleaspecti
nthemacr
oenv
ironment
.

Economi
cfact
orsar
eofconcer
ntomar
ket
ersbecauset
heyar
eli
kel
ytoi
nfl
uence,
amongot
hert
hings,
demand,
cost
s,pr
icesandpr
ofi
ts.Someoft
hekeyaspect
soft
he
economi
cenv
ironmentar
easI
ncomedi
str
ibut
ion,
Inf
lat
ionl
evel
,Economi
cBoom and
Recessi
on,
Inv
est
mentPol
i
cy,
Int
erestRat
es,
sav
inghabi
tset
c.

3.Soci
alandCul
tur
alEnv
ironment

Ofal
ltheel
ement
smaki
ngupt
hemacr
oenv
ironment
,per
hapssoci
o-cul
tur
alf
act
ors
ar
ethemostdi
ff
icul
ttoev
aluat
e,andhenceposet
hegr
eat
estchal
l
enget
othe
mar
ket
ingor
gani
sat
ion.Soci
alandcul
tur
alchangemani
fest
sit
sel
finchangi
ngt
ast
es,
pur
chasi
ngbehav
iourandpr
ior
it
iesofconsumer
sandmar
ket
ersneedt
ounder
stand
andi
dent
if
ythesechangi
ngt
rends.

Someoft
hesoci
o-cul
tur
alf
orcesar
easf
oll
ows:

Demogr
aphi
cfor
ces:
Thi
sref
erst
othest
ruct
ureofpopul
ati
oni
nter
m off
act
orssuch
asage,
fami
l
ysi
ze,
ethni
cit
y,i
ncomedi
str
ibut
ionandweal
thconcent
rat
ion.These
v
ari
abl
eswi
l
ldet
ermi
net
hemar
ket
ingmi
xst
rat
egi
es.

Soci
oCul
tur
alf
act
ors:
aret
hosear
east
hati
nvol
vet
heshar
edbel
i
efs,
att
it
udesand
behav
iourpr
eval
entwi
thi
nthesoci
etyi
nwhi
cht
heor
gani
sat
ionoper
ates.Changesi
n
t
ast
eandf
ashi
onar
eal
socomponent
soft
hesoci
al-
cul
tur
alenv
ironment
.

Soci
alResponsi
bil
i
tyandEt
hics:
Der
ivedi
npar
tfr
om cul
tur
e,et
hical
,bel
i
efsabouthow
mar
ket
ersshoul
doper
ateaf
fectt
heway
sinwhi
chpeopl
erespondt
omar
ket
ing
i
nit
iat
ives.

Changesi
nat
ti
tudet
owar
dsheal
th:
Today
,peopl
ear
emor
econcer
nedofheal
tht
han
t
heywer
eaf
ewdecadesago.Ani
ndi
vi
dual
int
eresti
nheal
thandphy
sical
fit
nessi
n
r
ecenty
ear
sseemst
ohav
ecutacr
ossmostsegment
sofoursoci
ety
.Par
ti
cipat
ioni
n

Af
iasul
tana
 UNI
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NTRODUCTI
ONTOMARKETI
NG

f
it
nessact
ivi
ti
esf
rom aer
obi
cst
oyogai
sont
hei
ncr
easeandt
husmar
ket
ershav
e
r
espondedwi
thawi
der
angeofpr
oduct
sandser
vicesf
ort
heheal
thconsci
ous
popul
ati
on.

Technol
ogi
cal
Env
ironment

Thet
echnol
ogi
cal
env
ironmenti
sper
hapst
hemostdr
amat
icf
orcest
hatcr
eat
enew
t
echnol
ogi
es,
creat
ingnewpr
oductandmar
ketoppor
tuni
ti
es.
Thepaceoft
echnol
ogi
cal
changei
sbecomi
ngi
ncr
easi
ngl
yrapi
dandmar
ket
ersneedt
ounder
standhow
t
echnol
ogi
cal
dev
elopmentmi
ghtaf
fectt
hem.

Ecol
ogi
cal
Env
ironment

Ecol
ogi
cal
Env
ironmenti
sconcer
nedofi
ssuesast
ohowt
heor
gani
sat
ioni
nter
act
swi
th
andaf
fect
sthenat
ural
env
ironmentort
heecol
ogy
.Ecol
ogi
cal
Env
ironmenti
ssues
r
elev
antt
omar
ket
ingasf
oll
ows:

Resour
cesDepl
eti
on:
thei
mpactoft
heuseofcer
tai
nmat
eri
alst
odev
eloppr
oduct
s
whi
chwoul
dleadt
othedepl
eti
onofnat
ural
resour
ces.

Pol
l
uti
onConcer
ns

oNoi
sePol
l
uti
on

oEnv
ironment
alPol
l

Et
hical
Env
ironment

Mar
ket
ingEt
hicsar
emor
alphi
l
osophi
es/
pri
nci
plest
hatdef
iner
ightorwr
ongbehav
iour
i
nmar
ket
ing.Themostbasi
cet
hical
issueshav
ebeenf
ormal
i
zedt
hroughl
awsand
r
egul
ati
onst
oconf
ormt
othest
andar
dsofsoci
ety
.Att
hev
eryl
east
,mar
ket
ersar
e
expect
edt
oobeyt
hesel
awsandr
egul
ati
ons.Howev
er,
iti
simpor
tantt
oreal
i
set
hat
mar
ket
inget
hicsgobey
ondl
egal
issues;
ethi
cal
mar
ket
ingdeci
sionsf
ost
ermut
ual
trust
amongi
ndi
vi
dual
sandi
nmar
ket
ingr
elat
ionshi
ps.
Ethi
cal
deci
sionsr
elat
edt
omar
ket
ing
woul
dbeont
hePr
oduct
,pr
ice,
promot
ionanddi
str
ibut
ioni
ssues.

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iasul
tana
 UNI
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NG

Legal
Env
ironment

Changesi
nthepol
i
tical
env
ironmentof
tenl
eadt
ochangesi
nlegal
env
ironmentandi
n
t
heexi
sti
ngl
awsenf
orced.Thel
egal
env
ironmentset
sthebasi
crul
esf
orhowa
busi
nessshoul
doper
atei
nsoci
ety
.

Someoft
hel
awsanor
gani
sat
ionshoul
dbeawar
eofar
easf
oll
ows:

a.Pr
otect
ionofi
ntel
l
ect
ual
right
s

b.ConsumerPr
otect
ionact

c.Compani
esAct

d.Regul
ator
ycommi
ssi
on

e.Env
ironment
alpr
otect
ionl
aws

f
.Codeoft
akeov
ersandmer
ger
s.

g.Lawswi
thr
egar
dtomedi
afr
eedom andadv
ert
isi
ng

h.Exchangecont
rol

Af
iasul
tana