Marketing Environment

Prof. Arijit Bhattacharya

 Marketing Environment
Micro Factors Macro Factors
Company Political
Suppliers Economic
Marketing intermediaries
Customer Social (Socioculutural)
Competitors Technological
Publics Legal
– Government
– Media Environmental (Natural)
– Financial institutions
– Whistleblowers Demographics
– Local public
– General public
– Internal public
 Micro Environment
• Company’s internal environment
– Areas inside the company
– All departments must “think customer” and work together to
provide superior customer value and satisfaction
• Suppliers
– Provide resources needed to provide goods and services
– Important link in the value delivery system
– Marketers treat suppliers like partners
• Marketing intermediaries
– Help the company to promote, sell, and distribute its goods to
final buyers
– Resellers, physical distribution firms, marketing service
agencies, financial intermediaries
 Micro Environment
• Customers
• Different types of markets that buy a company’s
goods and services
• Competitors
– Companies who serve a target market with product and
services that are viewed by consumers as substitutes
• Publics
– Group that has an interest in or impact on an
organization’s ability to achieve its objectives
Types of Publics
 Demographic Environment
• Worldwide Population growth
– 7 billion in 2011
• Population Age Mix
– India is a young country
• Ethnicity, religion based groups
– Sect, sub-sect, caste groups
• Educational groups
– Based on literacy rate
• Household patterns
– Joint to nuclear families
 Economic Environment
• Income distribution
• Income levels and consumption patterns
– Income distribution patterns
– Market for high end cars?
– Types of industrial structures: substinence, raw-
material-exporting, industializing, industrialized
• Consumer psychology
– During inflation, recession?
 Sociocultural Environment
a worldview that defines customers relationships to …
 Sociocultural Environment
• What are core cultural values of Indian
society?
• Subcultures
– Groups with shared values, beliefs, preferences,
and behaviors emerging from their special life
experiences and circumstances
– Eg. Indian teenagers
 Natural Environment
• Involves the natural resources that are needed
as inputs by marketers or that are affected by
marketing activities
• Factors impacting natural environment:
 Natural Environment
• Government intervention in Natural Resource
Management
– CNG-powered vehicles
– Solar powered lights, cookers
• Corporate environmentalism
– Green Marketing
– Hybrid cars
– Organic food
– Less use of plastic
– Recycling of e-waste
– Participating in Swach Bharat campaign
 Technological Environment
• Changes rapidly
• Creates new opportunities and markets
• Challenge
– Regulation
– High research cost
– Time lag between conceptualization and launch
• E.g.
– physical form of music to digital downloads
– 2G>3G>4G>…?
 Political-Legal Environment
• Laws, government agencies, and pressure groups that influence or
limit various organizations and individuals in a given Society.
• Increase in Business Legislation (What law changed recently in
Aviation sector, retail sector?) - green dot, red dot on food products
• Stricter government agency enforcement (Maggi banned, Bread
controversy)
• Emphasis on ethics and socially responsible actions
• Cause-related marketing
• As per section 135 in the Companies Act 2013, companies of a
certain size in India are required to spend 2% of their net profits on
CSR activities.
• Why Airtel has carried out Opennetwork campaign recently?
• Growth of special interest groups (Essar – Greenpeace)
Corporate Social Responsibility
 Marketing Environment
Micro Environment Macro Environment