Marketing

Environment
Presented by-
Ashutosh Suthar,
Bhawin Patel,
PGDM 2009-11,
MAISM, Jaipur
 Definition of Marketing

• “Marketing is an organisational function and a set of

processes for creating, communicating and delivering
value to customer and for managing customer
relationship in ways that benefit the organisation
and its stakeholders.”
– American Marketing Association
 Concept of Marketing

• Production Concept
• Product Concept
• Market Myopia
• Sales Concept
• Marketing Concept
 Market Environment
 The market environment is a marketing term
and refers to all of the forces outside of
marketing that affect marketing management’s
ability to build and maintain successful
relationships with target customers.

 The market environment consists two parts-

I. Macro/Mega environment.
II. Environment that is specific to the business
concerned
Mega/Macro Environment Factors
Mega
Environment
Factors
Technological
Environment

Political and
Demographic
Legal
Environment
Environment

Natural Economic
Environment Environment

Socio-cultural
Environment
 Demographic Environment
 Several factors relating to –
 Population
 Growth rate
 Age distribution
 Religious composition
 Literacy level
 Economic Environment

 Economic condition of different segments of

population, income and purchasing power.
 Rate of growth of each sector of the
economy- Agriculture, Industry, Services,
Consumer goods etc.
 Socio-cultural Environment

• Culture, traditions, beliefs, Values and lifestyle

of people in given society constitute the socio
culture environment.
• India-31 states, 1618 languages, 6400 castes, 6
ethnic groups, 29 festivals.
Example- Dairy Milk celebration pack.
 Natural Environment

• Natural resources- raw material is one major

part and firms are concerned with their
availability.
• Ecology- awareness about environmental
pollution and protection of wild life and ocean
wealth.
• Climate- firms with products whose demand
depends on climate and firms depending on
climate.
 Political and Legal Environment

• Marketers must work within the many laws

regulating business practices.
• Increase in business legislation because-
a. To protect the company from unfair competition.
b. To protect customer from unfair business
practices.
c. To protect the interest of society.
d. To increase CSR of firm.
 Technological Environment
• Technological changes in every sector like
agriculture, medical, automobile, telecom etc.
 Environmental factors specific to the
Business concerned
1. Market/Demand-
 Nature of the demand
 Size of demand
 Patterns of consumption
 Buying habits
2. The Consumer-
 Analysing the Consumer’s tastes and preferences.
 Lifestyle and needs.
 Contd..
3. Industry and Competition- fundamental
requirement for developing marketing
strategy.
4. Government Policies- affect the businesses
operate.
5. Supplier- influence the cost of raw material
and other inputs to a firm.
Thank You