The Marketing Environment

MARKETING

The

marketing environment

 The forces that directly or indirectly influence

an organization's capability to undertake its business.  The trading force operating in a marketplace over which a business has no direct control, but which shapes the manner in which the business functions and is able to satisfy its customers.

factors internal to the firm which affects the marketing operations.It is not just the external environment…  Included in the marketing environment is the internal environment. .

Components of the Marketing environment The external environment Micro Environment Macro Environment Internal environment Internal stakeholders .

Why is it important?  Essential for planning.  Helps a business to compete more effectively against rivals.  Enables an organisation to take advantage of emerging strategic oppurtunities.  Assist in the identifications of oppurtunities and threats. .

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Environmental scanning  Monitor  Identify  Evaluate  Forecast  Evaluate .

.  Analysis of market attractiveness.  Product and stock management.  Marketing opportunity analysis.  The monitoring of marketing performance.Forecasts are integral to  Marketing Planning.  Resource allocation.

The internal environment  Other internal functions that impinge on the marketing function. .

The internal environment  Internal processes and procedures.  Allocation of responsibilities within the organization.  The culture of the organisation  The attitude of internal stakeholders. .  Resource availability.

The micro environment .

 All factors which impact directly on a firm and its activities in relation to a particular market.The micro environment  All organizations and individuals who directly affect the activities of the company. .  The factors in the immediate environment that affect the firm’s capability to operate effectively in its chosen market.

Elements of micro environment           Customers Intermediaries Suppliers Competitors Local community Local govt. . Employees Trade unions Co-operators Regulators.

.Regulatory Environment Legal Environment  Contract Law  Consumer Law  Product safety  Trade Descriptions  Data Protection  Planning Laws  Environmental Law Codes of Practise  Advertising Standards Authority  Market Research  Direct Selling  Trade Assosciations  COP may not be legally bindingbut org. are expected to comply.

The competitive environment  Direct Competitors.  Close Competitors  Substitutes  Indirect competition .

Market Structure  Perfect competition  Monopolistic competition  Oligopoly  Monopoly .

Porter’s five forces .

The Market environment  B2C Markets  B2B Markets  Export markets  Government Markets  Reseller Markets .

The Macro environment  Demographics  Macro economic factors  Natural environment state  Changes in lifestyle .

Elements of macro environment  Macro economic environment  Political environment  Social and cultural environment  Demographic environment  Technical environment  Legal and regulatory environment .

indirect impact on consumer demand Unemployment Major impact on consumer demand via willingness and ability to buy Interest rates Direct impact on investment by business. A major factor in market growth Direct impact on costs and prices charged. Indirect impact on consumer demands in terms of the amount of discretionary spending Exchange rates Fall in the exchange rates boosts exports.The macro economic factors Economic growth Cyclical fluctuations Inflation Fluctuations in the level of sales Creates marketing opportunities. . Makes imports more expensive and causes cost push inflation.

The political environment  Central and local government policies  The tax regime  The extent to which the government is “Business Friendly”  Government attitude to regulations  Trade policies  The actions of special interest and pressure groups .

 The culture. beliefs and the values of the community  Lifestyle .The social environment  Population size and growth  The demographic profile of the country.

.The demographic environment  Worldwide population growth  Population age mix  Ethnic and other markets  Educational groups  Household patterns  Geographical shifts in population.

The technological environment  Invention of new goods and services  CAD – reduced the lead time on new product     development Reduced product life cycle Use of databases in market research and direct marketing Development of e-commerce Mass customisation .

POLITICAL ECONOMIC SOCIAL TECHNOLOGICAL SOCIAL LEGAL ECONOMIC POLITICAL TECHNOLOGICAL SOCIAL POLITICAL ECONOMIC CULTURAL TECHNOLOGICAL LEGAL ENVIRONMENTAL SOCIAL POLITICAL REGULATORY ECONOMIC SOCIAL TECHNOLOGICAL COMPETITIVE ORGANISATIONAL MARKET .

SWOT and PEST POSITIVE INTERNAL FACTORS EXTERNAL FACTORS NEGATIVE WEAKNESS THREATS STRENGTHS OPPURTUNITIES .