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LOGO Contents
LOGO
Micro environment
Chapter 2
MARKETING
ENVIRONMENT Macro environment

Marketing research
(read the textbook - chapter 4 - page 103-119)

www.themegallery.com

Definition

• A company’s marketing environment consists of

the actors and forces outside marketing that
affect marketing management’s ability to build
and maintain successful relationships with target
customers.
• The marketing environment always changes and
can either positively or negatively affect the
company.
• 2 types: micro and macro environments

Reasons to study the marketing

environment Marketing environment

• Understand changes in the marketing

Demography
environment
• Discover opportunities and threats Culture Suppliers Economy
• Make appropriate marketing decisions to: Inter-
Publics
◦ take advantage of market opportunities Firm mediaries
and counter threats Customers Nature
Laws Competitors
◦ utilize strengths and overcome
weaknesses
→ increase competitiveness and the Technology
brand

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2. Micro environment factors

Publics

The
Marketing
Suppli- company Custo
inter-
ers -mers
Competitors mediaries

Publics

2.1. The company 2.1. The company

• All departments in a firm have to cooperate to

Board of directors
carry out Marketing plans under the guidance
by the Board of Directors
• Board of Directors: decide objectives, strategies,
Marketing
Product
Accounting Sales Production
Human policies,etc.
design resources
• Marketing Department: do the market research;
make Marketing plans
• Other departments perform their own functions

2.2. Suppliers 2.2. Suppliers

• Suppliers are organizations and individuals
providing input products or services for a
firm's business activities.
• A company should choose a supplier with
good reputation (about prices, delivery time,
qualities,etc.)
Suppliers can put pressure on a firm when:
• The input materials is difficult to get replaced
and greatly affects product qualities.
• The firm is not an important customer
• The switching costs is high
• The firm can't self-produce the materials
• The supplier can produce the same product
kind as the firm

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2.3. Marketing intermediaries 2.3. Marketing intermediaries

• Marketing intermediaries help the company • Types of Marketing intermediaries:

promote, sell, and distribute its products to ˗ Physical distribution firms: stock and move
final buyers. goods

2.3. Marketing intermediaries 2.3. Marketing intermediaries

˗ Marketing services agencies: marketing ˗ Financial intermediaries: banks, credit

research firms, advertising agencies, media companies, insurance companies,etc.
firms, and marketing consulting firms

2.4. Customers 2.5. Competitors

• Individuals and organizations who buy a firm's • 4 types of competitors:

products or services ˗ brand competitors
• The most important factors ˗ product competitors
• 5 types of markets: ˗ generic competitors
˗ Consumer markets ˗ total budget competitors
˗ Business markets
˗ Reseller markets
˗ Government markets
˗ International markets

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2.6. Publics 2.6. Publics

• Public groups:
• Groups or organizations who have interests ˗ Financial publics: banks, investment analysts,
in and can affect a firm's business activities. stockholders, etc.
• Support or oppose the firm's business ˗ Media publics: newspapers, magazines, television
decisions stations, and blogs and other Internet media
˗ Government publics
˗ Citizen-action publics: consumer organizations,
environmental groups, minority groups, etc.
˗ Local publics: neighborhood residents and community
organizations
˗ Internal publics: This group includes workers,
managers, volunteers, and the board of directors.

2.7. Vinamilk's micro environment Vinamilk's products

Liquid Yogurt Powdered Infant cereals

milk milk

Ice cream Beverages Condensed Special nutrition

milk products for adults

Soymilk Cheese Sugar

Vinamilk's organization chart Vinamilk's diary farms

Shareholders meeting

Board of Directors
Strategy Nomination Remueration Audit
committee committee committee committee

Chief Executive Officer

Internal Control and Risk

Internal Audit Director
Management Director

Executive Executive Executive Executive Executive Executive Executive Executive

Director - Director - Director - Director - Director - Director - Director - Director -
Finance HR, Admin Dairy Marketing Research & Production Sales Supply
& PR Development Development Chains

Strategic Information
Planning Technology
Director Director

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Vinamilk's suppliers
Some of Vinamilk's suppliers
Suppliers
Fonterra (SEA) Pte Ltd.
Hoogwegt International BV
Perstima Binh Duong
Tetra Pak Indochina Carton boxes and packaging
Dielac Mama Gold Ad clip
Competitors
• direct
• liquid milk
•milk for children
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Vinamilk's Marketing intermediaries
• Agencies, distrbutors, supermarket, grocery stores,...
• Advertising agencies: for example, TBWA Vietnam
Materials agency with its “Dielac Mama Gold” advertising clip
Milk powder
• Physical distribution firms: Ho Chi Minh Warehousing
Milk powder
and Transportation Services Enterprise, Ha Noi
Tin cans
Warehousing and Transportation Services
Enterprise, refridgerated trucks to transport milk,...
machines
• Financial intermediaries: fund support from the
government, bank loans, etc.
Customers
• Stores that uses Vinamilk's products
• Vinamilk sells its products to the market via its
level-one agencies and these agencies have to
meet the standards for warehouses, delivery
trucks and have 60 billion dongs in cash.
• Each district has 1 agency.
• Vinamilk also exports its products to
Cambodia, Philippines, Middle East countries,
etc.
• ice cream
• cheese
• beverages
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2. Macro environment
Demography Economy Nature
Laws Technology Culture
2.2. Economic environment
• Economic status strongly affects people's
buying power and money spending.
• When the conomy changes, companies have
to adjust their marketing plans, redesign and
reprice their products,etc.
2.4. Technological environment
• Technology is the decisive factor in
productivity and quality improvement.
• It creates new products competing with
current ones.
• It changes quickly.
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2.1. Demographic environment
• Including factors like: population size, population
density, age, genders, races, education, family
structures, etc.
• Marketing involves above factors because they are
the foundation of the market from which needs are
form
2.3. Natural environment
• Includes: geographical locations, climates, land,
river, rivers, sea, natural resources,etc.
• The scarcity of some materials can be a threat
to some industries but an opportunity to others
• Example: scarcity of wood, threat and
opportunity for which industries?
• Environmental awareness
2.5. Legal environment
• The regulation of the laws and action of
public interest groups force m arketing
activities to be more and more responsible to
consumers
• Examples: regulations about information
printed on packages , honest and responsible
advertising, etc.
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2.6. Cultural environment
• The cultural environment consists of institutions
and other forces that affect a society’s basic
values, perceptions, preferences, and behaviors
• Customers' behaviors is greatly affected by the
culture of their countries.
(read textbook)
3.2 Research objectives
• Exploratory research is to gather preliminary
information that will help define the problem
and suggest hypotheses.
• Descriptive research is to describe things.
• Causal research is to test hypotheses about
cause-and-effect relationships.
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Exercise
Influence of the macro environment on activities
of a bank
3.1 Definition
• Marketing research is the systematic design,
collection, analysis, and reporting of data relevant
to a specific marketing situation facing an
organization.
• Marketing research process:
• This first step is probably the most difficult but
also the most important one. It guides the entire
research process.
3.3 Developing the research plan
• Outlines sources of existing data
• Spells out the specific research approaches,
contact methods, sampling plans, and
instruments to gather data
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3.4. Data 3.4.1 Gathering Secondary Data

• Secondary data is information that already

exists somewhere, having been collected for
another purpose.
Examples: the company's database, consumer
reports, government sources, etc.
• Primary data is information collected for the
specific purpose at hand.

3.4.2. Primary Data Collection 3.4.2. Primary Data Collection

Research Approaches
Research Contact Sampling Research • Observational research involves gathering
Approaches Methods Plan Instruments
primary data by observing relevant people,
Observation Mail Sampling unit Questionnaire
actions, and situations.
Survey Telephone Sample size Mechanical
instruments • Ethnographic research involves sending
Experiment Personal Sampling trained observers to watch and interact with
procedure consumers in their “natural environments.”
Online

3.4.2. Primary Data Collection 3.4.2. Primary Data Collection

Research Approaches Focus Group—Personal Contact Method

• Survey research involves gathering primary • Six to 10 people
data by asking people questions about their • Trained moderator
knowledge, attitudes, preferences, and buying • Challenges
behavior.
– Expensive
• Experimental research involves gathering – Difficult to generalize from small group
primary data by selecting matched groups of – Consumers not always open and honest
subjects, giving them different treatments,
controlling related factors, and checking for
differences in group responses.

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3.4.2. Primary Data Collection 3.4.2. Primary Data Collection

Online Contact Methods Sampling Plan

• Advantages A sample is a segment of the population selected
– Low cost for marketing research to represent the
– Speed population as a whole.
– Higher response rates • Who is to be studied?
– Good for hard to reach groups • How many people should be studied?
• How should the people be chosen?

3.4.2. Primary Data Collection 3.4.2. Primary Data Collection

TYPES OF SAMPLES Sampling Plan
Probability Sample
Simple random Every member of the population has a known and equal chance of A sample is a segment of the population selected
sample selection.
for marketing research to represent the
Stratified random The population is divided into mutually exclusive groups (such as
sample age groups), and random samples are drawn from each group. population as a whole.
Cluster (area) The population is divided into mutually exclusive groups (such as
sample blocks), and the researcher draws a sample of the groups to • Who is to be studied?
interview.
Probability Sample
• How many people should be studied?
Convenience The researcher selects the easiest population members from which • How should the people be chosen?
sample to obtain information.
Judgment sample The researcher uses his or her judgment to select population
members who are good prospects for accurate information.
Quota sample The researcher finds and interviews a prescribed number of people
in each of several categories.

3.4.2. Primary Data Collection 3.4.2. Primary Data Collection

Research Instruments - Questionnaires Mechanical Research Instruments

• Most common
• In person, by phone, or online
• Flexible
• Researchers must be careful with wording and
ordering of questions
– Closed-ended
– Open-ended
• Useful in exploratory research

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3.4.2. Primary Data Collection LOGO

LOGO
Implementing the Research Plan
• Collecting the information
• Processing the information
• Analyzing the information

Interpreting and Reporting Findings

• Interpret findings
• Draw conclusions
• Report to management

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