MARKETING ENVIRONMENT

MACRO & MICRO FACTORS AFFECTING BUSINESS

Marketing Environment
• All the actors and forces influencing the company’s ability to transact business effectively with it’s target market. • Includes: • Microenvironment - forces close to the company that affect its ability to serve its customers. • Macro environment - larger societal forces that affect the whole microenvironment.

The Marketing Environment
Demograph ic
Company

Cultura l

Economi c Company
Suppliers Customers

Publics

Political

Competitors

Natural

Intermediaries

Technologica l

The Macroenvironment

Demographic Socio-Cultural
Forces that Shape opportunities and pose threats to a Company

Economic

Political Technological

Natural

The Company’s Macroenvironment
Demographic Economic
Factors that affect consumer buying power and patterns.

nitors population in terms of age, sex, race, occupation, location and other statis

Natural
Natural resources needed as inputs by marketers or that are affected by marketing activities

Technological
Forces that create new product and market opportunities

Political
Laws, agencies and groups that influence or limit marketing actions

Socio-Cultural

rces that affect a society’s basic values, perceptions, preferences, and behavior

Demographic Environment

nitors population in terms of age, sex, race, occupation, location and other statis

Population Growth Population Age Mix Gender Breakup of population Literacy level

Key Indian Demographic Trends
Changing Age Structure
Population is getting younger

Marrying later, fewer children, working women, and nuclear family households

Changing Family Structure

Moving to the metros & mini-metros

Geographic Shifts

Increased Education
Increased college attendance and white-collar workers

Economic Environment

Economic paramete rs

Key Economic Concerns for Marketer s Changes In Consume r Spending Patterns

Changing income distributi on

RISE IN AFFLUENCE
Income Class
The Rich (over
Rs.215,000)

1995-96 2006-07 (Households) (Households)
1.2 32.5 54.1 44 33 5.2 75.5 81.7 20.2 16.5

Consuming Class
(45,000-215,000)

Climbers
(22,000-45,000)

Aspirants (16,000-22,000) Destitute
(Rs. 16,000)

Natural Environment More Government Intervention

Anti Pollution pressures

Factors Affecting the Natural Environment

Shortages of Raw Material

Increased Costs of Energy

Technological Environment
Rapid Pace of Change High R & D Budgets

Issues in the Technological Environment

Focus on Minor Improvements

Increased Regulation

Political Environment

Increased Business Legislatio n

Key Trends in the Political Environme nt

Protectin g consumer

Greater Concern for Ethics

Socio-Cultural Environment

The influences in a society and its culture that change people’s attitudes, beliefs, norms, customs, and lifesty Tastes & Preferences We Have: 30 languages,200 mother tongues, 2000 dialects Complex Culture & Sub Culture Cultural transition Move from Traditionalism to Westernization

The Microenvironment
Company

Publics

Forces Affecting a Company’s Ability to Serve Customers

Suppliers

Competitors Customers

Intermediaries

The Company’s Microenvironment
Company’s Internal Environment
Functional areas such as top management, finance, and manufacturing, etc. Provide the resources needed to produce goods and services.

Suppliers .

Marketing Intermediaries
Help the company to promote, sell, and distribute its goods to final buyers.

Customers
Five types of markets that purchase a company’s goods and services.

Competitors
Those who serve a target market with similar products and services.

. Group that perceives itself having an interest in a company’s ability to achieve its objectives.

Publics

. Suppliers

Provide the resources needed to produce goods and services Important link in the value delivery system

Treated like partners

Marketing Intermediaries
Help the company to promote, sell, and distribute its goods to final buyers.

Resellers

Physical distribution firms Marketing services agencies

Financial intermediaries

Customer Markets
International Markets Consumer Markets

Company
Government Markets Reseller Markets Business Markets

Those who serve a target market with similar products and services.

Competitors
Competitors

. Includes substitutes besides scanning direct competitor

. Must understand competitor’s strengths

Competitive strategies should emphasize firm’s distinctive competitive . advantage in marketplace

Types of Types Of Publics Publics
.

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