The Marketing Environment

Target Market
A defined group most likely to buy a product
• Changes as consumers age
• External elements change consumers’ desires

The External Environment

• Unless marketing managers understand the external environment, the
firm cannot intelligently plan for the future.

Environmental Management is…when a company implement strategies

that attempt to shape the external environment within which it operates.

Social Factors

Attitudes

Values

Lifestyle

Social Factors influence:

 Products purchased
 Prices paid for products
 Effectiveness of promotions
 How, where, and when people purchase
Component Lifestyles
The practice of choosing goods and services that meet one’s diverse needs and
interests rather than conforming to a single, traditional lifestyle.

Today’s consumers want multifunctional products

• No longer defined only by occupation

Role of Families and Working Women

• Growth of dual-income families results in increased purchasing power
• Approximately 31 percent of work-age females are in the workforce
• The phenomenon of working women has probably had a greater effect on
marketing than any other social change.

There Is Never Enough Time

• It is estimated that the percentage of working population that is worried
about having too little time keeps increasing.
• Research has shown that being constantly tethered to e-mail,
Smartphones, tablets, and other digital media can take a toll on a
person’s life and ability to focus

Demographic Factors

People are the basis for any market

• Demographic characteristics relate to buyer behavior
• Demographic cohorts have their own needs, values, and
consumption patterns.
Economic Factors

Consumers’
Income

Purchasing Power

Inflation

Recession

Consumers’ Incomes
• Per capita disposable income in India is (?)
• Incomes have risen at a significant pace in recent years.
• Education is the primary determinant of earning potential.
•
Purchasing Power
is a comparison of income versus the relative cost of a set standard of goods and
services in different geographic areas.
Inflation
a measure of the decrease in the value of money, expressed as the percentage
reduction in value since the previous year.
Recession
is a period of economic activity characterized by negative growth, which
reduces demand for goods and services.

Technological Factors
Impact of technology on a firm
Research

Pure research that aims to confirm

an existing theory or to learn more
Basic Research about a concept phenomenon.

An attempt to develop new or

improved products.
Applied Research

Political and Legal Factors

Laws and Regulations Protect:
 New technology
 Society
 Businesses
 Consumers
 Competitive Factors

How many competitors?

How big are competitors?
How interdependent isthe industry?
Control

Competitive Factors
Competition for Market Share and Profits
• Firms must work harder to maintain profits and market share.

Competition for Market Share and Profits

• More foreign firms
are entering Indian market.
• Foreign firms in India now understand and adapt to Indian
consumer needs.