Session 2 DG PDF

MARKETING MANAGEMENT
Dr. Deepak R. Gupta

Asst. Professor
NMIMS University
Chp 2: Analyzing Marketing Environment

SESSION DETAILS
• All the Best for Semester I
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Chp 2: Analyzing Marketing

Environment
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Environment
About the Book:
Marketing Management
Chapter 2
Analyzing the
Marketing
Environment

Environment
About the Book:
Marketing Management
Chapter 2: Analyzing the Marketing
Environment
Chapter Review
Case Study
Content: Theory
Caselet: Real Marketing
Content: Theory
Reviewing and Extending the concepts
Key Terms
Discussion & Critical Thinking
Application and Cases
Questions for Discussion

Environment
Chapters Name of the Chapter
Chp No. 1 Marketing: Creating Customer Value and Engagement
Chp No. 2 Analyzing the Marketing Environment
Chp No. 3 Consumer Markets and Buyer Behavior
Chp No. 4 Business Markets and Business Buyer Behavior
Chp No. 5 Customer Value-Driven Marketing Strategy: Creating Value for Target Customers
Chp No.6 Products, Services and Brands: Building Customer Value
Chp No. 7 Developing New Products and Managing the Product Life Cycle
Chp No. 8 Pricing: Understanding and Capturing Customer Value
Chp No. 9 Pricing Strategies: Additional Considerations
Chp No. 10 Marketing Channels: Delivering Customer Value
Chp No. 11 Communicating Customer Value: Integrated Marketing Communication Strategy
Chp No. 12 Direct, Online, Social Media and Mobile Marketing

CHAPTER 1 : ANALYZING THE MARKET
ENVIRONMENT
• What is Marketing?
• Understanding the Marketplace and Customer Needs
• Designing a Customer Value-Driven Marketing Strategy and Plan
• Managing Customer Relationships and Capturing Customer Value
• The Changing Marketing Landscape

CHAPTER 2 : ANALYZING THE MARKET
ENVIRONMENT
Objectives
2-1 Describe the environmental forces that affect the company’s ability to serve its
customers.
2-2 Explain how changes in the demographic and economic environments affect
marketing decisions.
2-3 Identify the major trends in the firm’s natural and technological environments.
2-4 Explain the key changes in the political and cultural environments.
2-5 Discuss how companies can react to the marketing environment.

Environment
CHAPTER REVIEW
• In this chapter, you’ll see that marketing operates in a complex and changing
environment.
• Other actors in this environment— suppliers, intermediaries, customers,
competitors, publics, and others—may work with or against the company.
• Major environmental forces— demographic, economic, natural, technological,
political, and cultural—shape marketing opportunities, pose threats, and affect the
company’s ability to engage customers and build customer relationships.
• To develop effective marketing strategies, a company must first understand the
environment in which marketing operates.

Environment
CHAPTER 2 : ANALYZING MARKETING
ENVIRONMENT
Objectives
2-1 Describe the environmental forces that affect the company’s ability to
serve its customers.

STORY OF GHANSHYAM

Environment
THE ENVIRONMENT
ENVIRONMENT
INTERNAL EXTERNAL
MICRO MACRO
MARKETING ENVIRONMENT
MICRO ENVIRONMENT MACRO ENVIRONMENT

includes the actors and forces
outside marketing that affect
Marketing marketing management’s ability
Environment to build and maintain successful
relationships with customers.
Microenvironment Macroenvironment
consists of the actors close to the

company that affect its ability to serve Consist of broader forces that
its customers, the company, suppliers, affect the actors in the
marketing intermediaries, customer microenvironment
markets, competitors, and publics.
Environment
THE MICROENVIRONMENT
Microenvironment consists of the actors close to the company that affect

its ability to serve its customers—the company, suppliers, marketing
intermediaries, customer markets, competitors, and publics.

Environment
THE COMPANY
In designing marketing
plans, marketing
management takes other
Before taking the company groups into
marketing decisions and account. Marketers must work in
adopting any strategy the Top management harmony with other
company first need to company departments to
analyze about its own Finance create customer value
capabilities that what it is R&D relationship.
capable of doing. Purchasing
Operations
Accounting

Environment
THE SUPPLIERS
Marketers must watch

supply availability and cost.
Shortage in supply can cost
sales in the short run and
damage customer
satisfaction in the long term.
Right
Timely Quality Price
product

Environment
DELL SUPPLIERS

Environment
MARKETING INTERMEDIARIES
Firms that help the company to promote, sell, and distribute its goods to final buyers.
RESELLERS: PHYSICAL DISTRIBUTION

FIRMS:
They are those who hold and sell They help the company to stock and
company’s product. move goods from their points of
• Wholesaler and retailer origin to their destinations.
• Transportation and warehousing.
MARKETING SERVICES FINANCIAL INTERMEDIARIES:

AGENCIES :
They help finance transactions and
They help the company target and
insure against risks.
promote its products.
• Advertising agencies. Media agency,
marketing research firms, etc. • Banks, credit companies,
insurance company, etc.

Environment
COMPETITIORS
No single competitive
marketing strategy is best for
all companies. There are
Conducting winning strategies for large
competitor firms, small firms can develop
analysis is critical strategies that give them better
for success of the rates of return than large firms
firm enjoy.
Firms must gain strategic

advantage by positioning
their offerings strongly
against competitors’
offerings in the minds of
consumers.

Environment
BMW AND AUDI
• After BMW’s ‘Checkmate‘, Audi bought an even bigger billboard where it said ‘Your pawn is no
match for our King‘ showing the Audi R8.
• Well now BMW took the battle to an even higher level (literally) and bought a small Zeppelin,
where the words ‘Game Over‘ were written..
PUBLICS
Financial publics: This group Media publics: This group carries

influences the company’s ability to news, features, editorial opinions, Government publics. Management
obtain funds. Banks, investment and other content. It includes must take government
analysts, and stockholders are the television stations, newspapers, developments into account.
major financial publics. magazines, etc
Citizen-action publics. A
company’s marketing decisions General public. A company needs
Local publics. This group includes
may be questioned by consumer to be concerned about the general
neighborhood residents and
organizations, environmental public’s attitude toward its
community organizations.
groups, minority groups, and products and activities.
others.
Internal publics. This group

includes workers, managers,
volunteers, and the board of
directors.

Environment
CUSTOMERS
GOVERNMENT
CONSUMER BUSINESS MARKETS:
RESELLER
MARKETS: MARKETS: Agencies that buy
MARKETS: INTERNATIONA
individuals and buy goods and goods and services L MARKETS:
buy goods and
households that buy services for further in order to produce
services in order to buyers of all types in
goods and services processing or for use public services or
resell them at a foreign countries
for personal in their production transfer them to
profit
consumption process those that need
them.

Environment
ENVIRONMENT
Objectives
2-2 Explain how changes in the demographic and economic environments
affect marketing decisions.

THE MACROENVIRONMENT
Macro environment consists of the larger societal forces that affect

the microenvironment—demographic, economic, natural,
technological, political, and cultural forces.

Environment
THE DEMOGRAPHIC ENVIRONMENT
• Demography : is the study of human populations in terms of size, density, location,
age, gender, race, occupation, and other statistics.
• Studying the demographic environment is important because it involves people,
and people make up markets.
• The most important demographic trends in the countries in the Indian Continent
include:
1. Increasing Population
2. A growing middle Class
3. Population in Rural India
4. Generational Marketing
5. The Changing Family System.
6. The Changing Role of Women
7. A Better educated, More White Collar, More Professional Population
8. Increasing Diversity

Environment
Increasing Population
• Main characteristics of Asian population is the rapid growth

of urban population.
• Urban population will supposedly rise from 29% today to

37% in 2025 i.e from 3.18 mn to 523mn by 2025.

Environment
A Growing Middle Class
•MGI has divided Indian population into 5 economic classes based on real annual
disposable income.
•Deprived: <90000rs-unskilled, semiskilled daily wage workers.

•Aspirers: 90000-199000rs -small retailers, small farmers, low skilled industrial workers.
•Seekers: 200000-499000rs- white collar employees, mid level government officials,
newly employed post graduate students, medium scale traders and bus.people.
• Strivers: 500000-9999999rs – established professionals, industrialist, rich farmers.
•Global Indian: >1000000rs- senior executive, bus owners, top most professionals,
politicians, film actors.
•Middle Class = Seekers + Strivers- 200000-100000/-

Environment
The Changing Family system.
• Modern India has abandoned the concept of

Joint Family and shifted to Nuclear Family.
• This Dual Income Single Kid (DISK) family
has created a dent in social fabric of our
society.
• Both parents work- family income increases-
increased consumption and demand –
increased real estate market.
• Young couples have freedom and are no
more subjected to a close supervision of the
elders in the family.
• Husband and wife both have become career
oriented making marriages more fragile , As
a result urban nuclear family is splitting.
• Growing number of nuclear families has led
to growing number of retired homes.

Environment
Generational Marketing
• Some experts warn that marketers need to be careful about

turning off one generation each time they craft a product or
message that appeals effectively to another.
• Others caution that each generation spans decades of time and
many socioeconomic levels.
• Defining people by their birth dates will be less effective than
segmenting them by their lifestyle, life stage or common values
they seek in the products they buy.

Environment
CATCHY TITLES

Environment
TITLES CAN CREATE CONVERSION
DO A/B TESTING
• Facebook ad targeting is unrivaled in its versatility. You can
target your ads based on user location, age, gender, interest,
relationship status, education and more.

Environment
• Facebook ad targeting is unrivaled in its versatility. You can
target your ads based on user location, age, gender, interest,
relationship status, education and more.

Environment
Population in Rural India
* Demand is expected to grow at an annual

compound rate of 5.1% during next 15 years.
* By 2025- Rural consumption will nearly
triple.
* Main constraints: purchasing power, lack of
proper infrastructure, reliable supply of
electricity.
* Government of India is trying to bridge the
gap between rural market and urban by
building infrastructure

Environment
Changing role of Women.
• About 3 decades ago, primary role of women
in the sub continent was to look after the
house.
• More and more girls, even in rural India are
completing graduation and even post-
graduation
• Women are far more ambitious and want to
make use of knowledge by working in the
corporate world.
• Gender discrimination is a thing of past.
Women earn the same salaries even more
than their men colleague leading to the
increased disposable income of the family.
• Many products are now made specially for
them.
• They are an active member of the family and
have an equal say in the decision making
process.
Environment
A Better-Educated, More White Collar, More Professional
Population
• Provision of education has increased

from 888rs in 2004-05 to 2985rs in
2011-12.
• Various Government policy promote
education, New elementary schools into
action as a result enrollment has
increased at CAGR of 10.8% in various
degree courses.
• As per FICCI, 25.9 mn students have
enrolled in more than 45000 degree and
diploma institute in India.
• Student Enrollment has increased at
10.8% CAGR and number of institutes
has increased at 9% CAGR.
• Indian population more educated-
increased demand for quality products.

Environment
Increasing Diversity
• Countries vary in ethnic and racial make up .

• At the other extreme is the United States, with people from
virtually all national origins. The United States has often
been called a melting pot, where diverse groups from many
nations and cultures have melted into a single, more
homogenous whole. Instead, the United States seems to
have become more of a “salad Serving diverse customer
communities:
• India- “Land of Diversity” with many religion, languages,
dialects, cultures and lifestyles.
• Preferences and perceptions of various brands would
change depending on the region. It is, therefore said that
marketer finds many markets in India
• Different cultural patterns & social rituals offer an
opportunity to marketers to market their brand during the
festivals. Each festival be it Eid or Diwali, Baisakhi or
Onam or Durga Puja an opportunity to promote the sale of
their brands.

Environment
INCREASING DIVERSITY: KUMBH MELA
• Lifebuoy
• Lifebuoy has tied up with more than 100 local dhabas and restaurants. For every
order, the first chapatti served carries the branded message and makes an instant
connection. It has also placed the soap in the wash rooms of all these eateries. It
delivers a message through chapatti and creates awareness as well as strong
positioning in consumers mind.

Environment
INCREASING DIVERSITY: KUMBH MELA
• Tata swach
• Tata Swach has stationed 300 water purifiers spread over 28
booths. The brand estimates that over one million litres of water will be
consumed by the pilgrims at the mela.

Environment
Increasing Diversity
• Additionally LGBT(6-7% of US population) have

buying power of me than $884bn.
• Brands in a wide range of industries are now
targeting the LGBT community with gay-specific
ads and marketing efforts—from Amazon, adidas,
Allstate, and Apple to Kaiser Permanente, Wells
Fargo, Macy’s, and Best Buy.
• Another segment – 2.68cr Indians with disability
ranging in the age group of 20-59 have some
special needs.
• Many marketers now recognize that the worlds of
people with disabilities and those without
disabilities are one in the same. Marketers such
as McDonald’s, Verizon Wireless, Nike, Samsung,
Nordstrom, Toyota, and Apple have featured
people with disabilities in their mainstream
marketing.

Environment
THE ECONOMIC ENVIRONMENT
• Economic environment consist of economic factors that affect both

consumer purchasing power and spending patterns.
• Value Marketing- Watchword for marketers. Trying to offer financially frugal
buyers greater value – just right combination of product quality and good
service at a fair point.
• Marketers must focus on the income distribution and income levels.
• Distribution of income has created a tier market.
1. Mercedes- Affluent
2. TATA- Modest
3. Maruti-Suzuki- Less Affluent.
• Major Economic variables- Income, Cost of living, interest rates, savings and
borrowing patterns have large impact on market place. Companies watch these
variables using economic forecasting.

Environment
THE ECONOMIC ENVIRONMENT
Example
Consumers Flock
Big Bazaar
to the outlets of
supermarket offers
Big bazaar and
all its merchandise
form a queue
at discounted
outside before the
prices.
store opens.
It adopts a policy of
‘ Everyday low
price’ and offers
additional discount
on special days like
Independence day,
Republic Day.

Environment
ENVIRONMENT
Objectives
2-3 Identify the major trends in the firm’s natural and technological
environments.

THE NATURAL ENVIRONMENT
•Natural environment involves the physical

environment and natural resources that are
needed as inputs by marketers or that are
affected by the marketing activities.
•Unexpected happenings in the physical

environment anything from weather or
natural disaster can affect companies and
their marketing strategies.
•Ex: the delugein Chennai and Mumbai:

both cities were flooded by incessant rains-
sales suffered from florist to automobile
dealers to restaurants to airlines etc but
boosted the sales of products like packaged
drinking water, mosquito repellent and auto
repair centers.

Environment
• Marketers must be aware of several trends in the natural
environment: THE NATURAL
 Shortage of Raw material: Air, Water, Non ENVIRONMENT
renewable resources like oil, coal etc. By 2030, 1 in
3 people will not have enough water to drink.
 Increased pollution: disposal of chemical and
nuclear wastes; dangerous mercury levels in ocean;
quantity of chemical pollutants in food and soil.
 Increased Government intervention: Vary in
concerns and efforts to maintain clean environment
mainly based on funds and political will. German
Govt. vigorously pursue environmental quality.
Whereas, Poorer nations do little about pollution.
• Many companies are responding to consumer demands
with more environmentally responsible products. Others
are developing reusable and recyclable materials and
components.
• In India Central Pollution Control Board (CPCB) has
been created to address the environmental concerns and
challenges relating to the paradigm shift in strategies for
pollution abatement and control.
Environment
 Rolling out new high efficiency stores- stores use wind turbines,
high output linear fluorescent lighting to reduce what energy stores Walmart:
do use and native landscaping to cut down on watering and “Eco-Nanny”
fertilizers.
 Store heating systems burn recovered cooking oil from deli fryers
and motor oil from Tire and Lube Express centers.
 All organic waste is hauled off to a company that turns it into a
mulch for garden.
 Walmart is committed to using 100% renewable energy in all of its
stores and distribution centers and sending 0% waste to landfills.
 Walmart has laid down eco land to its vast network of suppliers to
get them do the same.
 It has developed Walmart Sustainability Index Programme which
help suppliers understand , monitor and enhance the sustainability
of their products and the supply chain.
 As a result , Walmart suppliers have cut energy, water, materials,
toxic ingredients , and other inputs while creating less waste and
fewer emissions.
 Legislative agencies can only level nominal fines but walmart can
threaten a substantial chunk of a suppliers business.

Environment
 Started with a full page NewYork Ties ad on
Black Friday, Patagonia’s best selling R2 Jacket PATAGONIA’S
pronouncing “Don’t buy this Jacket”. The ad “CONSCIOUS
was backed up with messaging in its retail stores CONSUMPTION”-
, websites and social media pages, in addition to
follow up email to the customers. Telling consumers to
 “Because Patagonia wants to be in business for a buy less
long time and leave a world inhospitable for our
kids, we want to the opposite of every other
business today. We ask you to buy less and to
reflect before you spend a dime on this jacket or
anything else.
 The environmental cost of R2 jacket included:
1. 135L of water
2. Used 60% recycled polyester, generating 20
pounds of carbon dioxide.
3. Waste production is two third of each jacket’s
weight.
 Hence Jacket came at an environmental cost
higher than its price.

Environment
PATAGONIA’S “CONSCIOUS CONSUMPTION”-
Telling consumers to buy less
Reduce: WE make useful gear that lasts a

long time. YOU don’t buy what you don’t
need.
Repair: WE help you repair your
Patagonia gear. YOU pledge to fix what’s
broken.
Reuse: WE help find a home for Patagonia
gear you no longer need. YOU sell or pass
it on.
Recycle: WE take back your Patagonia
gear that is worn out. YOU pledge to keep
your stuff out of the landfill and
incinerator.
Reimagine: TOGETHER we reimagine a
world where we take only what nature can
replace.

Environment
PATAGONIA’S “CONSCIOUS CONSUMPTION”-
Telling consumers to buy less

Environment
 Technological advances are perhaps the most
dramatic force affecting today’s marketing
strategies..
THE
 Technology has revealed wonders as well as horrors . TECHNOLOGICAL
 New technology can offer exciting opportunities for ENVIRONMENT
marketers.
 The use of Radio Frequency Identification (RFID),
GPS, Bluetooth etc is already widespread these
days.
 Many firms are already using RFID to track its
products and customers at various points in
distribution channel.
 Eg: Walmart encouraging their suppliers and
retailers to attach RFID system in pallets and stores
respectively.
 Thus every new technology replaces an older
technology.
 Companies that do not keep up with the new
technological products, will soon be put of the league
by loosing the market and the opportunities.
 Government investigates and puts a ban on
potentially harmful products . FDA, Consumer
Product Act are few of the regulations that marketers
must adhere to before launching a new product in
the market.
Environment
EXAMPLE
 Disney is taking RFID technology to

the whole new level:
 After registering a cloud based
My Magic+ Service with the flick
of your wrist , enter the park,
buy dinner or souvenirs or unlock
your hotel room.
 If you get lost in the park, a quick
scan of your Magic Band at a
nearby directory could pi point
the location of your entire party.
 Magic band could trigger in depth
information about park features,
ride wait times, Fast Pass Check
in alerts and your reservation
schedule.

Environment
ENVIRONMENT
Objectives
2-4 Explain the key changes in the political and cultural environments.

THE POLITICAL AND SOCIAL ENVIRONMENT
consist of laws, government agencies, and pressure groups that influence and limit various
organizations and individuals in a given society.
LEGISLATION REGULATING BUSINESS
Government develop PUBLIC POLICY to guide commerce – sets of laws and regulations that limit
business for good of society as a whole. Business Legislation is enacted for mainly 3 reasons.:
Protect the interest of the

society: Regulation arises to
ensure that firms take
Protect Companies from each responsibility for the social
other: To define and prevent costs of their production or
unfair competition. products.
Protect Consumers: From unfair

business practices like shoddy
products, invading consumer’s
privacy, deceive consumer from
packaging and pricing etc.

Environment
INCREASED EMPHASIS ON ETHICS AND SOCIALLY
RESPONSIBLE ACTORS
Consumer online
Online Privacy Issues
tracking
• Explosion of amount of
personal digital data • Businesses track
Do the right thing consumers online buying
available. Voluntarily
• Marketing involves ethics placed many times like on behavior and collect,
and social responsibility FB, Linked in Etc. analyze and share digital
but due to conflicting data from every move
interests code of ethics is • Information is consumers make on their
formulated. systematically developed online sites.
by businesses to learn
more about their • Most companies fully
customers. disclose their internet
privacy policies.

Environment
CAUSE RELATED MARKETING
Companies linking themselves to worthwhile cause
Some controversies that

stirred up- cause related
marketing is more a strategy
for selling than giving- cause
exploitative marketing.
Companies find themselves
walking on a thin line of
increased sales and improved
image and facing charges of
exploitation.
If handled well, effective
marketing tool.

Environment
EXAMPLES
Indian Oil Corporation Ltd. (IOCL)

Offers scholarship to young players
between 14-19 to encourage talent
and create a pool of sports person
and from whom the corporation will
select employees.
Value Led Business-

• Warby Parker- Company sells eyewear
with a purpose- for every pair of glasses it
distributes free pair to someone in need.
• Company works with non profit
organization and train low income
entrepreneurs to sell affordable glasses.
• Everybody has right to see.

Environment
THE CULTURAL ENVIRONMENT
Consist of institutions and other forces hat affect a society’s basic values, perceptions, preferences
and behavior.
THE PERSISTENCE OF CULTURAL VALUES
These beliefs shape more specific attitudes and

behavior in everyday life.
Core values
Passed on by parents to children and reinforced
by schools , business, religious institutes, etc.
Cultural values
These are more open to change. Believing in

Secondary
marriage is a core belief but believing that
Beliefs
people should get married is a secondary belief.

Environment
BRIDE DRESS: INDIA AND EUROPE
FUNERAL CLOTHES
THE CULTURAL ENVIRONMENT
SHIFT IN SECONDARY CULTURAL VALUES.
People’s view of themselves

•Some people seek personal pleasure while others seek
self realization.
•People use brands, products and services as a means of
self expression that math their views and themselves.
People’s view of Others

•Digital technology launched an era of “mass mingling” or
have made people together as “alone together”
•This increasing trend of tapping into the digital networks ,
brands needs to participate in these networks

Environment
People’s view of Society

*Patriots wants to defend it, Reformers want to
change it while malcontents wants to leave it.
*Some brands ae highly associated with
patriotism : Jeep, Coca Cola, Disney, Apple, etc.
People’s view of Organization

•There has been overall decrease in loyalty at work.
•Many people see work not as a source of satisfaction
but as a required chore to earn money to enjoy their
non work hours.
•Organization needs to find new ways to gain
consumer and employee loyalty.

Environment
NIKE AIR
• Nike offended Muslims in June, 1997 when the "flaming air" logo for its Nike
Air sneakers looked too similar to the Arabic form of God's name, "Allah".
• Nike pulled more than 80,000 pairs of sneakers from the market.
Prof. Deepak R. Gupta

Prof. Deepak R. Gupta
People’s view of Nature
*People have recently recognized that nature is finite and
fragile, it can be either destroyed or spoiled by human
activities.
*This renewed love can create sizeable market of consumers
who seek out every thing from natural organic and
nutritional products
Eg. Food products
People’s view of Universe
*People have been moving away from materialism and dog-
eat-dog ambition to seek more permanent values- family,
community earth, space etc.
*Rather than calling it as religion they call it as
spirituality.
*This changing spiritualism affects consumers in
everything from TV shows they watch, books they read to
the products they buy and consume

Environment
Culture !! Its Different
• Teaches members how

to pursue the world by
giving meaning and
definition to things
• A grasshopper is a pest
in the USA,
• A pet in China,
• An apetizer in thailand
ENVIRONMENT
Objectives
2-5 Discuss how companies can react to the marketing environment.

RESPONDING TO MARKETING ENVIRONMENT
• Consider environment • These firms develop strategies to

to be an uncontrollable change the environment.
element and choose to • Companies and their products often
react and adapt. They create and shape new industries
do not try to change it , Unco Proactive
and their structures, products such
as Ford’s Model T car, Apple’s iPad
passively accept it. ntroll and iPhone , Google’s search
• They analyze able engine, Patanjali, etc.
environment and create • Rather than simply watching and
strategies that would reacting to environmental events ,
avoid threats and take Reactive firms take aggressive actions to
advantage of the affect the publics and forces in
opportunities the their marketing environment .
environment provides. • Companies hire lobbyist to
Watching and influence legislation affecting their
reacting to industries and stage media events
forces in the to gain coverage
environment. • Eg: Mc Donalds’s Pink Goop,
Cadbury.

Environment
RESPONDING TO MARKETING ENVIRONMENT
SAINSBURY’S TAKES ADVICE FROM A 3-YEAR OLD
• Lily Robinson (who insists that she is three and a half years old) was quite
confused by one of Sainsbury’s products called tiger bread. In her eyes, the bread
didn’t resemble a tiger at all, and in fact looked very much like a giraffe.

Environment
Environment
TRANSCRIPT OF A LETTER

Environment
ONLINE CAMPAIGN

Environment
SAINSBURY’S TAKES ADVICE FROM A 3-
YEAR OLD

Environment
IN THE SOCIAL MEDIA AGE : WHEN THE DIALOGUE
GETS NASTY
• Upon receiving a severely damaged computer monitor via
FedEx, YouTube user goobie55 posts footage from his security
camera.
• The video clearly shows a FedEx delivery man hoisting the
monitor package over his head and tossing it over goobie55’s
front gate, without ever attempting to ring the bell, open the gate,
or walk the package to the door.
• The video—with FedEx’s familiar purple and orange logo
prominently displayed on everything from the driver’s shirt to the
package and the truck—goes viral, with 5 million hits in just five
days. TV news and talk shows go crazy discussing the clip.
• FedEx drew praise by immediately posting its own YouTube video addressing the
monitor-smashing incident. In the video, FedEx Senior Vice President of Operations
Matthew Thornton stated that he had personally met with the aggrieved customer,
who had accepted the company’s apology. “This goes directly against all FedEx
values,” declared Thornton. The FedEx video struck a responsive chord.
Numerous journalists and bloggers responded with stories about FedEx’s
outstanding package handling and delivering record.

Environment
GETS NASTY
• A young creative team at Ford’s ad agency in India produces a Ford Figo print ad and releases it
to the Internet without approval.
• The ad features three women—bound, gagged, and scantily clad—in the hatch of a Figo, with a
caricature of a grinning Silvio Berlusconi (Italy’s sex-scandal-plagued ex prime minister) at the
wheel.
• The ad’s tagline: “Leave your worries behind with Figo’s extra-large boot (trunk).” Ford quickly
pulls the ad, but not before it goes viral. Within days, millions of people around the world have
viewed the ad, causing an online uproar and giving Ford a global black eye.
In response to its Figo ad fiasco, Ford’s chief marketing officer issued a deep public apology,
citing that Ford had not approved the ads and that it had since modified its ad review
process. Ford’s ad agency promptly Chp 2: the
fired Analyzing
guiltyMarketing
creatives.
Environment
GETS NASTY
• When 8-year-old Harry Winsor sends a crayon drawing of

an airplane he’s designed to Boeing with a suggestion
that the company might want to manufacture it, the
company responds with a stern, legal-form letter. “We do
not accept unsolicited ideas,” the letter states. “We regret
to inform you that we have disposed of your message and
retain no copies.”
• The embarrassing blunder would probably go unnoticed
were it not for the fact that Harry’s father—John Winsor,
a prominent ad exec—blogs and tweets about the
incident, making it instant national news.
• Boeing quickly took responsibility for mishandling aspiring Harry Winsor’s designs,
turning a potential PR disaster into a positive. It called and invited young Harry to visit
Boeing’s facilities.
• On its corporate Twitter site, it confessed “We’re experts at airplanes but novices in social
media. We’re learning as we go.”

Environment

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MARKETING MANAGEMENT

Dr. Deepak R. Gupta

Chp 2: Analyzing Marketing Environment

• All the Best for Semester I

• Please type your Queries and wait for your turn.

• Kindly answer all the Polls or Multiple Choice Question.

Chp 2: Analyzing Marketing

• Attend Online Session

Chp 2: Analyzing Marketing

Chp 2: Analyzing Marketing

Chp 2: Analyzing Marketing

Chp No. 3 Consumer Markets and Buyer Behavior

Chp No. 4 Business Markets and Business Buyer Behavior

Chp No.6 Products, Services and Brands: Building Customer Value

Chp No. 8 Pricing: Understanding and Capturing Customer Value

Chp No. 9 Pricing Strategies: Additional Considerations

Chp No. 10 Marketing Channels: Delivering Customer Value

Chp No. 11 Communicating Customer Value: Integrated Marketing Communication Strategy

Chp No. 12 Direct, Online, Social Media and Mobile Marketing

Chp 2: Analyzing Marketing Environment

Chp 2: Analyzing Marketing Environment

Chp 2: Analyzing Marketing

Chp 2: Analyzing Marketing

Chp 2: Analyzing Marketing Environment

Chp 2: Analyzing Marketing

MICRO ENVIRONMENT MACRO ENVIRONMENT

consists of the actors close to the

Microenvironment consists of the actors close to the company that affect

Chp 2: Analyzing Marketing

Chp 2: Analyzing Marketing

Marketers must watch

Chp 2: Analyzing Marketing

Chp 2: Analyzing Marketing

RESELLERS: PHYSICAL DISTRIBUTION

MARKETING SERVICES FINANCIAL INTERMEDIARIES:

Chp 2: Analyzing Marketing

Firms must gain strategic

Chp 2: Analyzing Marketing

Financial publics: This group Media publics: This group carries

Internal publics. This group

Chp 2: Analyzing Marketing

Chp 2: Analyzing Marketing

Chp 2: Analyzing Marketing Environment

Macro environment consists of the larger societal forces that affect

Chp 2: Analyzing Marketing

Chp 2: Analyzing Marketing

• Main characteristics of Asian population is the rapid growth

• Urban population will supposedly rise from 29% today to

Chp 2: Analyzing Marketing

•Deprived: <90000rs-unskilled, semiskilled daily wage workers.

Chp 2: Analyzing Marketing

• Modern India has abandoned the concept of

Chp 2: Analyzing Marketing

• Some experts warn that marketers need to be careful about

Chp 2: Analyzing Marketing

Chp 2: Analyzing Marketing

Chp 2: Analyzing Marketing

Chp 2: Analyzing Marketing

* Demand is expected to grow at an annual

Chp 2: Analyzing Marketing

• Provision of education has increased

Chp 2: Analyzing Marketing