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Service marketing involves 3 types of marketing: 1. EXTERNAL MARKETING 2. INTERNAL MARKETING 3.

INTERACTIVE MARKETING

1. External Marketing : "Setting the Promise" Marketing to END-USERS. Involves pricing strategy, promotional activities, and all communication with customers. Performed to capture the attention of the market, and arouse interest in the service. 2. Internal Marketing : "Enabling the Promise" Marketing to EMPLOYEES. Involves training, motivational, and teamwork programs, and all communication with employees. Performed to enable employees to perform the service effectively, and keep up the promise made to the customer. 3. Interactive Marketing : (Moment of Truth, Service Encounter) This refers to the decisive moment of interaction between the front-office employees and customers, i.e. delivery of service. This step is of utmost importance, because if the employee falters at this level, all prior efforts made towards establishing a relationship with the customer, would be wasted. Read more: http://wiki.answers.com/Q/What_is_service_triangle_in_service_marketing#ixzz1V e3IqwA4

Service marketing is unique in many ways in the travel and tourism industry. There are 3 players in the transaction process:r Company: A travel and tourism company listens to the customers and evolves/develops the travel/tour package and it communicates the attractiveness and the utility of that very tour package directly to the customers. Here it (the company) performs external marketing. The company makes promises to the customers. r Providers: They are a travel companys internal customers constituting employees and agents. The company does internal marketing with the providers educating and motivating them about the idea of the particular tour package which they can offer to their customers. This is done to enable the providers to effectively carry out the service transaction process. The providers make

provisions for office space, accessibility and connectivity. The company enables promises to be kept by this infrastructural association. r Customers (Travelers): The customers are the reasons that the travel company exists and for whom the company has designed the traveling and touring package as well as set up the infrastructural facilities and spent money on employee development programmes. Here the providers are the only ones who interact with the customers, like the travel agents interact with the customers and not the company. The agents perform interactive marketing which is on-time, all-time, every-time. This is the most crucial aspect of service marketing in the travel and tourism sector. Those agents have the responsibility of keeping promises made and enabled by the company. The providers (agents) are responsible for the perceived quality level of the service transaction. This underlines the uniqueness of service marketing.

Market environment
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(November 2007)

The market environment is a marketing term and refers to all of the forces outside of marketing that affect marketing managements ability to build and maintain successful relationships with target customers. The market environment consists of both the macroenvironment and the microenvironment. The microenvironment refers to the forces that are close to the company and affect its ability to serve its customers. It includes the company itself, its suppliers, marketing intermediaries, customer markets, competitors, and publics. The company aspect of microenvironment refers to the internal environment of the company. This includes all departments, such as management, finance, research and development, purchasing, operations and accounting. Each of these departments has an impact on marketing decisions. For example, research and development have input as to the features a product can perform and accounting approves the financial side of marketing plans and budgets.

The suppliers of a company are also an important aspect of the microenvironment because even the slightest delay in receiving supplies can result in customer dissatisfaction. Marketing managers must watch supply availability and other trends dealing with suppliers to ensure that product will be delivered to customers in the time frame required in order to maintain a strong customer relationship. Marketing intermediaries refers to resellers, physical distribution firms, marketing services agencies, and financial intermediaries. These are the people that help the company promote, sell, and distribute its products to final buyers. Resellers are those that hold and sell the companys product. They match the distribution to the customers and include places such as Wal-Mart, Target, and Best Buy. Physical distribution firms are places such as warehouses that store and transport the companys product from its origin to its destination. Marketing services agencies are companies that offer services such as conducting marketing research, advertising, and consulting. Financial intermediaries are institutions such as banks, credit companies and insurance companies. Another aspect of microenvironment is the customers. There are different types of customer markets including consumer markets, business markets, government markets, international markets, and reseller markets. The consumer market is made up of individuals who buy goods and services for their own personal use or use in their household. Business markets include those that buy goods and services for use in producing their own products to sell. This is different from the reseller market which includes businesses that purchase goods to resell as is for a profit. These are the same companies mentioned as market intermediaries. The government market consists of government agencies that buy goods to produce public services or transfer goods to others who need them. International markets include buyers in other countries and includes customers from the previous categories. Competitors are also a factor in the microenvironment and include companies with similar offerings for goods and services. To remain competitive a company must consider who their biggest competitors are while considering its own size and position in the industry. The company should develop a strategic advantage over their competitors. The final aspect of the microenvironment is publics, which is any group that has an interest in or impact on the organizations ability to meet its goals. For example, financial publics can hinder a companys ability to obtain funds affecting the level of credit a company has. Media publics include newspapers and magazines that can publish articles of interest regarding the company and editorials that may influence customers opinions. Government publics can affect the company by passing legislation and laws that put restrictions on the companys actions. Citizenaction publics include environmental groups and minority groups and can question the actions of a company and put them in the public spotlight. Local publics are neighborhood and community organizations and will also question a companys impact on the local area and the level of responsibility of their actions. The general public can greatly affect the company as any change in their attitude, whether positive or negative, can cause sales to go up or down because the general public is often the companys customer base. And finallythose who are employed within the company and deal with the organization and construction of the companys product.

The macroenvironment refers to all forces that are part of the larger society and affect the microenvironment. It includes concepts such as demography, economy, natural forces, technology, politics, and culture. Demography refers to studying human populations in terms of size, density, location, age, gender, race, and occupation. This is a very important factor to study for marketers and helps to divide the population into market segments and target markets. An example of demography is classifying groups of people according to the year they were born. These classifications can be referred to as baby boomers, who are born between 1946 and 1964, generation X, who are born between 1965 and 1976, and generation Y, who are born between 1977 and 1994. Each classification has different characteristics and causes they find important. This can be beneficial to a marketer as they can decide who their product would benefit most and tailor their marketing plan to attract that segment. Demography covers many aspects that are important to marketers including family dynamics, geographic shifts, work force changes, and levels of diversity in any given area. Another aspect of the macroenvironment is the economic environment. This refers to the purchasing power of potential customers and the ways in which people spend their money. Within this area are two different economies, subsistence and industrialized. Subsistence economies are based more in agriculture and consume their own industrial output. Industrial economies have markets that are diverse and carry many different types of goods. Each is important to the marketer because each has a highly different spending pattern as well as different distribution of wealth. The natural environment is another important factor of the macroenvironment. This includes the natural resources that a company uses as inputs and affects their marketing activities. The concern in this area is the increased pollution, shortages of raw materials and increased governmental intervention. As raw materials become increasingly scarcer, the ability to create a companys product gets much harder. Also, pollution can go as far as negatively affecting a companys reputation if they are known for damaging the environment. The last concern, government intervention can make it increasingly harder for a company to fulfill their goals as requirements get more stringent. The technological environment is perhaps one of the fastest changing factors in the macroenvironment. This includes all developments from antibiotics and surgery to nuclear missiles and chemical weapons to automobiles and credit cards. As these markets develop it can create new markets and new uses for products. It also requires a company to stay ahead of others and update their own technology as it becomes outdated. They must stay informed of trends so they can be part of the next big thing, rather than becoming outdated and suffering the consequences financially. The political environment includes all laws, government agencies, and groups that influence or limit other organizations and individuals within a society. It is important for marketers to be aware of these restrictions as they can be complex. Some products are regulated by both state and federal laws. There are even restrictions for some products as to who the target market may be, for example, cigarettes should not be marketed to younger children. There are also many

restrictions on subliminal messages and monopolies. As laws and regulations change often, this is a very important aspect for a marketer to monitor. The final aspect of the macroenvironment is the cultural environment, which consists of institutions and basic values and beliefs of a group of people. The values can also be further categorized into core beliefs, which passed on from generation to generation and very difficult to change, and secondary beliefs, which tend to be easier to influence. As a marketer, it is important to know the difference between the two and to focus your marketing campaign to reflect the values of a target audience. When dealing with the marketing environment it is important for a company to become proactive. By doing so, they can create the kind of environment that they will prosper in and can become more efficient by marketing in areas with the greatest customer potential. It is important to place equal emphasis on both the macro and microenvironment and to react accordingly to changes within them.[1]
Marketing and the organisations micro- and macro-environments by Geoff Lancaster The full text of Geoff's notes is displayed below without diagrams. You can download a full copy of the notes in Word format (which should display diagrams correctly) by clicking here (934k). 1 The micro-environment The term micro-environment denotes those elements over which the marketing firm has control or which it can use in order to gain information that will better help it in its marketing operations. In other words, these are elements that can be manipulated, or used to glean information, in order to provide fuller satisfaction to the companys customers. The objective of marketing philosophy is to make profits through satisfying customers. This is accomplished through the manipulation of the variables over which a company has control in such a way as to optimise this objective. The variables are what Neil Borden has termed the marketing mix which is a combination of all the ingredients in a recipe that is designed to prove most attractive to customers. In this case the ingredients are individual elements that marketing can manipulate into the most appropriate mix. E Jerome McCarthy further dubbed the variables that the company can control in order to reach its target market the four Ps. Each of these is discussed in detail in later chapters, but a brief discussion now follows upon each of these elements of the marketing mix together with an explanation of how they fit into the overall notion of marketing. 1.1 The four Ps and the marketing mix The four Ps stands for: 1. 2. 3. 4. Product Price Place and Promotion

Product and price are obvious, but perhaps place and promotion need more explanation. Place, it is felt, might better be termed placement because it comprises two distinct elements. The first element is channels of distribution that is the outlets and methods through which a companys goods or services are sold. Thus a channel can be certain types of retail outlet or it can be salespeople selling a companys industrial products through say a channel which comprises buyers in the chemical industry. The other part of place refers to logistics that relates to the physical warehousing and transportation of goods from

the manufacturer to the end customer. Thus, placement might be a better descriptor as it refers to the placing of goods or services from the supplier to the customer. In fact, place has its own individual mix which is termed the distribution mix. Promotion also has its individual mix that is called the promotional mix. This comprises advertising, selling and sales promotion. In fact promotion is a misnomer, because in advertising agency circles the mention of promotion usually means sales promotion. Some writers are now separating selling away from promotion and calling it people because it is too important an element of marketing to be lumped in with promotion, although in reality it is still promotion (through word of mouth). This fifth P (people) are those who contact customers on a regular basis with the objective of ultimately gaining orders and these people comprise the salesforce. We can thus see that selling is a component part of overall marketing. There are two more Ps for service marketing, but these are dealt with later. 1.2 Models of marketing Figure 1 attempts to sum up what is meant by marketing at a very simple level. In fact it is one of the earliest models ever attempted to explain the meaning of marketing. Information

Firm

Customer

Operation

Figure 1 Simple diagrammatic representation of marketing In Figure 1 we see information coming from customers to the supplying company. This information is noted and goods or services are supplied to customers in line with customer needs. The information flow represents an exchange of ideas whilst the operation flow represents an exchange of meanings. Figure 2 is perhaps a more precise diagram of what is meant by marketing and one which we can begin to understand from what has already been said. Marketing Research Sales Forecasting Buyer Behaviour

Supplier

Customer

Product

Price

Distribution

Promotion

Personal selling

Segmentation targeting & positioning

Channels Logistics

Advertising

Sales promotion

Figure 2 Model of the process of marketing This more complex model better explains what we are now beginning to understand about marketing. The bottom line represents the elements of the marketing mix over which a company has control. These elements are manipulated in such a way as to best suit customers needs and tastes and this represents an operational flow where things have to be done in order to arrive at the optimum marketing mix. Remember that there are sub-mixes within the individual elements of the marketing mix. This bottom line also equates to the earlier notion of the four Ps, or rather the five Ps, as personal selling has been separated from promotion and becomes people. The top line represents an information flow from the market to the firm. Data is collected through discussions and interviews with customers on and informal and formal basis. A whole range of techniques is available for this process and this is collectively termed marketing research. A more advanced strategic model that incorporates marketing research is embodied in a marketing information system (MkIS) and this is dealt with in a later lecture. In addition, data is collected from customers in relation to their likely future purchases and this is known as sales forecasting. Another raft of techniques is available for the subject of sales forecasting which lies at the very heart of marketing and business planning. Thus we begin to see how marketing orientation works. Customers are the starting point and sales forecasting and marketing research determine their likely requirements and tastes. This information is processed internally within the organisation and products and promotional messages are devised to suit customers needs, to allay their purchasing fears and to reinforce their expectations. Goods and services are supplied as and when required in the quantities needed and when they are requested - not later and not earlier. This latter point is reinforced, because modern marketing dictates that customers demand their goods as needed and this lies at the base of the latest notion of just-in-time manufacturing which relates to raw materials and components. This is covered later in the text and it has tremendous implications for modern marketing. 1.3 The place of marketing alongside other elements of business Marketing is but one function within business. Arguably it is the most critical function because it interprets customers needs and requirements into products and services and repeat business without which a business cannot continue. In fact a modern view of marketing puts customers in the centre and marketing as the interpretative function surrounding the customer with other major functions of business around this as shown in Figure 3. The idea is that all functions of business should be geared towards the satisfactions of customers requirements and this has led to the new notion of customer care. Production Marketing Finance Customers Human Resource Management Research & Development

Figure 3 The place of marketing in the modern organisation

At a more traditional level, marketing is often found alongside other major functions within business and Figure 4 illustrates this relationship. This organisation chart does not, of course, refer to all business organisations and to a large extent it is the ideal theoretical structure. Companies tend to evolve and develop in a non-textbook manner, and in practice many different organisation charts can be found as a result of all kinds of illogicalities that defy modern management thinking. Such illogical functions might well exist because of the forceful personality of a head of department, whose department has assumed a position of power within an organisation through his or her own personal disposition, and there is no managerial justification for putting it in such a position of power in line management. An example could be the material control department that might report direct to the managing director rather than being a sub-function within the purchasing department. Another example, quite commonly found, is a situation where a sales director can be found in the line alongside a marketing director. In such a situation, it might be a forceful sales director in a sales driven organisation who will not assume the responsibility for marketing, but who is too powerful to put into a subordinate position under marketing. With this background in mind, a textbook organisation chart might be as shown in figure 4: Board of directors (responsible for policy making) Company Secretary General Manager Corporate Strategy

Production

Marketing

Research & Development Human Resource Management

Purchasing

Finance

Management Services (Computing)

Figure 4 A Traditional Organisation Chart In this organisation chart we can see the place of marketing alongside other major functions of line management. At the top there is the board of directors who are responsible for giving the organisation its strategic direction. Members of the board are not necessarily full-time employees of the company. Indeed, in many larger companies, they tend to be from outside the organisation and the expertise they lend to the board can be on a variety of criteria. Such people might, for instance, be strategy experts, financial experts, people who lend distinction to an organisation (e.g. somebody with a title) and people who are there because they are on the board of directors of other companies and can bring a cross fertilisation of ideas, financial linkages and potential inter-firm dealings. The general manager is the person who translates policy into tactics and is responsible for the day-to-day operations of the company. In most companies the general manager is a member of the board of directors and in such cases his or her title would then be managing director.

The company secretary is responsible for legal and administrative matters in addition to serving as the secretary to the board of directors. This person also ensures that board meetings take place at intervals stipulated in the companys articles of association, and that policies that are decided are implemented. For this reason, the role of company secretary is a lateral relationship and is not in the line of command. This also applies to the relatively new function of corporate strategy whose function may be carried out by general management, but is often a separate, relatively small, function whose role it is to ensure that all subdivisions in the organisation have a plan (e.g. a marketing plan) and that each of these plans fits into the overall corporate plan without there being any mismatches (e.g. marketing might plan to market more than the firm can produce). The major line functions are responsible for translating strategy into tactics in terms of the organisations everyday operations and this includes such matters as manufacturing, training and recruitment, design and selling. As was discussed in the first chapter, marketing is a relatively modern function and it encompasses the function of selling (although as discussed earlier, in many organisations the two functions are sometimes separated). In many organisations, heads of these line functions are sometimes members of the board of directors in which case they would then have director behind their title (e.g. marketing director, financial director). In such cases their responsibilities would cover both strategic matters (being a member of the board of directors) and tactical matters (being a functional head of department). 2 The proximate macro-environment The term macro-environment denotes all forces and agencies external to the marketing firm itself. Some of these forces and agencies will be closer to the operation of the firm than others, e.g. a firms suppliers, agents, distributors and other distributive intermediaries and competing firms. These closer external constituents are often collectively referred to as the firms proximate macro-environment to distinguish them from the wider external forces found, for example, in the legal, cultural, economic and technological sub-environments. This consists of people, organizations and forces within the firms immediate external environment. Of particular importance to marketing firms are the sub-environments of suppliers, competitors and distributors (intermediaries). These sub-environments can each have a significant effect upon the marketing firm. 2.1 The supplier environment This consists of other business firms or individuals who provide the marketing firm with raw materials, product constituents, services or, in the case of retailing firms, possibly the finished goods themselves. Firms, whether they be retailers or manufacturers, will often depend on numerous suppliers. The buyer/supplier relationship is one of mutual economic interdependence, both parties relying on the other for their commercial well-being. Although both parties are seeking stability and security from their relationship, factors in the supplier environment are subject to change, such as industrial disputes which will affect delivery of materials to the buying company, or a sudden increase in raw material prices which forces suppliers to raise their prices. Whatever the product or service being purchased by the marketing firm, unexpected developments in the supplier environment can have an immediate and potentially serious effect on the firms commercial operations. Because of this, marketing management, by means of the marketing intelligence component of its marketing information system, should continually monitor changes and potential changes in the supplier environment and have contingency plans ready to deal with potentially adverse developments. 2.2 The distributive environment Much reliance is placed on marketing intermediaries such as wholesalers, factors, agents and distributors to ensure that their products reach the final consumer. To a casual observer, it may seem that the conventional method of distribution in any particular industry is relatively static. This is because changes in the distributive environment occur relatively slowly, and there is therefore a danger of marketing firms failing to appreciate the commercial significance of cumulative change. Existing channels may be declining in popularity over time, while new channels may be developing unnoticed by the marketing firm. Nowhere has this creeping change been more apparent over recent years in the UK and other parts of the world than in the retailing of fast moving consumer goods (fmcg). In the 1960s well over half of all fmcg retail trade was accounted for in the

independent sector plus a further large proportion to the Co-operative Societies. Nowadays, the sector represented by the larger food multiples has well in excess of this proportion. 2.3 The competitive environment Management must be alert to the potential threat of other companies marketing similar and substitute product whether they are of domestic or foreign origin. In some industries there may be numerous world-wide manufacturers posing a potential competitive threat and in others there may only be a few. Whatever the type, size and composition of the industry, it is essential that marketing management has a full understanding of competitive forces. Companies need to establish exactly who their competitors are and the benefits they are offering to the market. Armed with this knowledge, the company will have a greater opportunity to compete effectively. 3 The wider macro-environment Changes in the wider macro-environment may not be as close to the marketing firms day-to-day operations, but they are just as important. The main factors making up these wider macro-environmental forces fall into four groups. 1. 2. 3. 4. Political and legal factors Economic factors Social and cultural factors Technological factors

(Often referred to as the PEST factors in the marketing analytical context, a useful aide-memoire, although in some texts it is sometimes referred to as STEP). To this is sometimes added Competitive factors and although PEST analysis relates to a specific organisation Competitive factors tend to be subsumed under Economic factors. Such a PEST analysis means listing all possible points that may affect the organisation under review under each of the P.E.S.T. headings. Recently, some texts have added L (standing for legal) and E (standing for environmental) to this classification, making the acronym PESTLE. Even more recently, some writers have incorporated yet another E (standing for ecological) with the new acronym STEEPLE. 3.1 The political and legal environment To many companies, domestic political considerations are likely to be of prime concern. However, firms involved in international operations are faced with the additional dimension of international political developments. Many firms export and may have joint ventures or subsidiary companies abroad. In many countries, particularly those in the so-called Third World or more latterly termed Developing Nations, the domestic political and economic situation is usually less stable than in the UK. Marketing firms operating in such volatile conditions clearly have to monitor the local political situation very carefully. Many of the legal, economic and social developments, in our own society and in others, are the direct result of political decisions put into practice, for example the privatization of state industries or the control of inflation. In summary, whatever industry the marketing firm is involved in, changes in the political and legal environments at both the domestic and international levels can affect the company and therefore needs to be fully understood. 3.2 The economic environment Economic factors are of concern to marketing firms because they are likely to influence, among other things, demand, costs, prices and profits. These economic factors are largely outside the control of the individual firm, but their effects on individual enterprises can be profound. Political and economic forces are often strongly related. A much quoted example in this context is the oil crisis caused by the Middle East War in 1973 which produced economic shock waves throughout the Western world, resulting in dramatically increased crude oil

prices. This, in turn increased energy costs as well as the cost of many oil-based raw materials such as plastics and synthetic fibres. This contributed significantly to a world economic recession, and it all serves to demonstrate how dramatic economic change can upset the traditional structures and balances in the world business environment. As can be seen, changes in world economic forces are potentially highly significant to marketing firms, particularly those engaged in international marketing. However, an understanding of economic changes and forces in the domestic economy is also of vital importance as such forces have the most immediate impact. One such factor is a high level of unemployment, which decreases the effective demand for many luxury consumer goods, adversely affecting the demand for the industrial machinery required to produce such goods. Other domestic economic variables are the rate of inflation and the level of domestic interest rates, which affect the potential return from new investments and can inhibit the adoption and diffusion of new technologies. In addition to these more indirect factors, competitive firms can also pose a threat to the marketing company so their activities should be closely monitored. It is therefore vital that marketing firms continually monitor the economic environment at both domestic and world levels. Economic changes pose a set of opportunities and threats, and by understanding and carefully monitoring the economic environment, firms should be in a position to guard against potential threats and to capitalize on opportunities. 3.3 The socio-cultural environment This is perhaps the most difficult element of the macro-environment to evaluate, manifesting itself in changing tastes, purchasing behaviour and changing priorities. The type of goods and services demanded by consumers is a function of their social conditioning and their consequent attitudes and beliefs. Core cultural values are those firmly established within a society and are therefore difficult to change. They are perpetuated through family, the church, education and the institutions of society and act as relatively fixed parameters within which marketing firms are forced to operate. Secondary cultural values, however, tend to be less strong and therefore more likely to undergo change. Generally, social change is preceded by changes over time in a societys secondary cultural values, for example the change in social attitude towards credit. As recently as the 1960s, personal credit, or hire purchase as is sometimes known, was generally frowned upon and people having such arrangements tended not to discuss it in public. Today, offering instant credit has become an integral part of marketing, with many of us regularly using credit cards and store accounts. Indeed, for many people it is often the availability and terms of credit offered that are major factors in deciding to purchase a particular product. Marketing firms have also had to respond to changes in attitude towards health, for example, in the food industry people are now questioning the desirability of including artificial preservatives, colourings and other chemicals in the food they eat. The decline in the popularity of smoking is a classic example of how changes in social attitudes have posed a significant threat to an industry, forcing tobacco manufacturers to diversify out of tobacco products and into new areas of growth. Changes in attitudes towards working women have led to an increase in demand for convenience foods, onestop shopping and the widespread adoption of such time-saving devices as microwave cookers. Marketing firms have had to react to these changes. In addition, changes in moral attitudes from the individualism of the permissive society of the 1960s and early 1970s to the present emphasis on health, economic security and more stable relationships, are all contributory factors to a dynamically changing socio-cultural environment that must be considered by companies when planning for the future. 3.4 The technological environment Technology is a major macro-environmental variable which has influenced the development of many of the products we take for granted today, for example, television, calculators, video recorders and desk-top computers. Marketing firms themselves play a part in technological progress, many having their own research

department or sponsoring research through universities and other institutions, thus playing a part in innovating new developments and new applications. One example of how technological change has affected marketing activities is in the development of electronic point of sale (EPOS) data capture at the retail level. The laser checkout reads a bar code on the product being purchased and stores information that is used to analyse sales and re-order stock, as well as giving customers a printed readout of what they have purchased and the price charged. Manufacturers of fast-moving consumer goods, particularly packaged grocery products, have been forced to respond to these technological innovations by incorporating bar codes on their product labels or packaging. In this way, a change in the technological environment has affected the products and services that firms produce and the way in which firms carry out their business operations. 4 Other macro-environmental factors The macro-environmental factors discussed are not intended to be an exhaustive list, but merely to demonstrate the main areas of environmental change. Other sub-environments may be important to marketing management, for example, in some countries the religious environment may pose an important source of opportunities and threats for firms. In the UK, demographic changes are considered important by a number of firms. In general, the UK population has been stable at approximately 56 million for a number of years, but the birth rate is falling, while people are living longer. Firms that produce goods and services suitable for babies and small children (e.g. Mothercare) have seen their traditional markets remain static or decline slightly. Such companies have tended to diversify, offering products targeted at older age groups. A larger older sector of the population offers opportunities for firms to produce goods and services to satisfy their particular needs. The over-55 age group is the modern marketers current major opportunity. In all advanced economies such as the Australia, UK and USA it is this age group that has the largest disposable income, and special products and services such as holidays and pension-related financial services are being marketed to this sector. 5 Summary The companys micro-environment has been discussed in terms of variables over which it has control relevant to the marketing mix. This led to a description of marketing and its various sub-divisions including information from the market-place in terms of forecasting and marketing research. Marketing was then looked at alongside other business functions and its place in line management was noted. The companys proximate macro-environment was then examined under supplier, distributive and competitive environment environments and finally the wider macro-environment was examined under the headings: political and legal, economic, socio-cultural and technological environments. This can best be summed up by looking what has been covered in terms of a number of layers in the environment from customers, to marketing and resources of the company, to the organisations proximate macro-environment and finally to its wider macro-environment. This is illustrated in Figure 5. POLITICAL

Suppliers

Marketing Information System

Publics

Marketing

Product

Price

Control

ECONOMIC

Place

Promotion

SOCIO- CULTURAL

Marketing Organisation Competitors Intermediaries

TECHNOLOGICAL

Figure 5 An Organisations various environments The outer layer consists of the wider macro-environmental PEST factors. The next layer concerns the proximate macro-environment factors cited under section 2. This also includes the organisations publics that is a public relations term dealt with later, but which essentially means any group of individuals who are affected by or are in touch with the company in any context (e.g. those who supply finance or those who live near the companys manufacturing plant). The next layer is the organisations strategic marketing planning and control system. The tactics that deliver the strategy are the four Ps and these are in the next layer. The final inner circle is the most important and it is customers from which all planning must start. The phrase of being a customer led organisation is at the very heart of marketing orientation and indeed tactics of customer care help to cement long term customer relationships.

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