IDB

Marketing

Session 2
Environmental Issues
Marketing Information Systems (MKIS)
 Contents
• Environmental issues
• Micro environment
• Macro environment
• Consumerism
• Environmentalism
• Marketing Information System (MKIS)
 Environmental
• Marketers take major responsibility of identifying
significant changes in environment
• To stay alive you must
• Identify
• Analyse
• Monitor
• External forces are outside marketer’s control
• Must be considered
• Marketing environment is divided into
• Micro – environment
• Macro – environment
 Micro – environment
• Consists of forces close to company that effect ability
• Roll players
• Company
• Suppliers
• Distributors
• Customers
• Competitors
 Micro – environment
• Company
• Creating the marketing plans
• All departments must work well together
• Management has full control here
• Will influence market with its strategies
• The rest of the roll players will have effect on company
• Will work with the strength’s and weaknesses
 Micro – environment
• Top management have control over
• Product/service
» Technology used
» Geographical distribution
• Main goals
» Sales
» Profit
» After sales services
• Roll of marketing in environment
» Integration
» Functions
• Financial issues
 Micro – environment
• Marketers have control over
• Choice of target market
• Target goals
» Sales
» Profit
» Image
» Competition
• Organisational structure
• Marketing mix
 Micro – environment
• Suppliers
• Provide all the necessary resources
• Will have impact on resources available
• Can influence the price of products

• Distributors
• Help distribute goods to final buyer
• Intermediaries include wholesalers and retailers
• Try to bridge gap between producer and consumers
• Plays important roll in value added system
• Decisions about distributors means long term relationship
• Choose carefully
• Must fit image of product
 Micro – environment
• Customers
• They are the target of the market
• Those who will buy the product
• They have a need that needs to be addressed
• Know customers and what they want
 Micro – environment
• Competitors
• Companies that sell similar or substitute products
• Need sustainable competitive advantage
• Must place yourself next to competitor
• 5 forces influence the environment
» Potential new competitors
» Bargaining power of clients
» Bargaining power of distributors
» Substitutes
» Current competitors
• If forces are weak, strong possibility for success
Micro – environment
 Macro – environment
• Consists of the forces that affects the whole micro–
environment
• Will create opportunities and threats
• Forces will have direct and indirect impact on company
• Company has no control over forces
• Factors consist out of
• Political-legal
• Economic
• Social-cultural
• Technological
• Natural
• International
 Macro – environment
• Political-legal
• Government interference
» New laws
» Taxes on imported products
» Subsidies on local products
» Import control
» Tariffs
» Regulations
• Political stability
• Privatising
 Macro – environment
• Economic
• Markets require buying as well as people
• Consumers purchasing power
• Spending patterns of consumers
• Distribution of income
• Inflation
• Economic growth
• Interest rates
• Taxation
• Wages and salaries
• Growth of population
• Globalisation
 Macro – environment
• Social-cultural
• Demographic of environment
• Social trends
• People moving to cities
• Change of women’s roll
• More households
• Cultural values
• Low cost labour
• AIDS
 Macro – environment
• Technological
• New discoveries in science, inventions and innovations
• New technology results in
» New products
» Better service
» Improved products
» More cost efficient production
• International trade
• E-money
• Rate of discoveries keep getting faster
 Macro – environment
• Natural
• Refers to natural resources that are needed
• Impact on company because of
– Scarcity of resources
– Increase in cost of energy
– Increase of pollution
– Increase in population
 Macro – environment
• International
• Globalisation
• International trade unions
• Value of currency
 Consumerism
• A social force within the environment
• Designed to aid and protect buyers
• Groups who seek to safeguard consumer interests
• Consumer rights
• Right to choose freely
• Right to be informed
• Right to be heard
• Right to be safe
• Implication for marketers
• Safe and quality products with proper labelling
• Fair pricing
• Truthful and accurate advertising
 Environmentalism
• Refers to the movement that aims to protect the
environment
• Groups who seek to maximise quality of life by means of
better living environment
• Want environmental cost to be included in decision
making
• Green movement result of increased attention to
environmental and ecological issues
• Concern over
• Ozone layer
• Air & water pollution
• Waste disposal
• Deforestation
• Animal–based experimentation
 Societal Marketing Concept
• Response to critics that marketing
has ignored public interest
• Marketing just wanted to satisfy
customers
• Not only focuses on meeting needs,
but also consumer well being
• Marketing activities should be socially
and environmentally responsible
 Marketing information System
• Information problems result from over-abundance rather
than shortage
• An organised method for gaining data
• Ongoing process
• Data refers to statistics, opinions, facts or predictions
• Information is data that is relevant
• MKIS is planned
• Often computer based
• Can serve as company’s nerve center
• Provide instantaneous information
 Internal records
• Information gathered from sources within the company
• Used to evaluate marketing performance
• Will detect marketing problems and opportunities
• Marketing and other departments must work together
• Information will help create new marketing opportunities
 Marketing intelligence
• Everyday information about developments in the
marketing environment
• Data can be collected from
• Government reports
• Competitor reports
• Professional companies
 Market research
• More focused and specific
• Company will pay to investigate problem areas
• Primary data
• Can have own R & D department do it or pay outside
company
 Information analysis
• Data and information must be analysis
• Statistical tools and methods are used to evaluate
information
• Marketing information has no value until analysed
• Will be used to make better marketing decisions
• Information must be distributed to right managers at right
time
 Benefits of MKIS
• Timely reports
• Selective retrieval of information
• Continuous monitoring of market effort
• Wide variety of data available
 Summary
• Environmental issues
• Micro environment
• Macro environment
• Consumerism
• Environmentalism
• Marketing Information System (MKIS)