MARKETING

ENVIRONMENT
 Marketing Environment

 Consists of actors and forces outside the organization

that affect management’s ability to build and
maintain relationships with target customers.
 Environment offers both opportunities and threats.
 Marketing intelligence and research used to collect
information about the environment.
 Marketing Environment
 Includes:
 Micro environment: actors close to the company
that affect its ability to serve its customers.
 Macro environment: larger societal forces that
affect the microenvironment.
 Considered to be beyond the control of the
organization.
Actors in the Microenvironment
 The Company
 Suppliers
 Marketing Intermediaries
 Customers
 Competitors
 Publics
The Company’s Microenvironment

 Areas inside a company.

 All departments must “think consumer” and work
together to provide superior customer value and
satisfaction.
“Internal Branding is an important element of the branding
game. It is important that every element of your business is
aligned with your branding strategy - that includes your
people.
The bigger your organisation is, the more it takes to educate
your people. After all, the only way that your brand can be
properly explained to your end consumer is when your people,
fully immersed in the brand, are able to articulate it. ”

Jui Hong Teoh, Brand Director, Phische Advertising, Malaysia

“We embarked on consciously building Virgin into a brand
which stood for quality, value, fun and a sense of challenge.
We also developed these ideas in the belief that our first
priority should be the people who work for the companies,
then the customers,
then the shareholders. Because, if the staff are motivated then
the customers will be happy, and the shareholders will then
benefit through the company’s success.”
– Richard Branson, Founder, Virgin Group.
The Company’s Microenvironment

 Suppliers:
 Provide resources needed to produce goods and
services.
 Important link in the “value delivery system.”
 The Company’s Microenvironment

 Marketing Intermediaries:
 Help the company to promote, sell, and distribute its goods
to final buyers
 Resellers
 Physical distribution firms
 Marketing services agencies
 Financial intermediaries
 The Company’s Microenvironment
 Customers:

 Competitors:
 Those who serve a target market with products and services
that are viewed by consumers as being reasonable substitutes
 Company must gain strategic advantage against these
organizations

 Publics:
 Group that has an interest in or impact on an organization's
ability to achieve its objectives
 First branded company in India started in 1994.
 Gili set out to make its mark and offer people
something unexpected, unbelievable and unheard of.
 Gili came to the fore with its grounding to make
available jewellery that was wearable, within means
and beautiful.
 Gili took everyone by surprise with its unique,
inimitable and never seen before products.
 "from occasionally... to the need of every occasion".
Competitors

 Inside India

 Outside India

 Threat from Thailand and China in production

 Huge unorganized sector : 0.2 Million Gold

Jewelers & over 8000 Diamond Jewelers
Bargaining Power of Suppliers
 Jewellery Industry ,suppliers: S.A., UAE, Australia, US,
Congo, Botswana, Russia, DTC.

Bargaining Power of Buyers

 Two types: 1. Domestic buyers 2. Foreign buyers
 As investment (Demand increases)
 Bargaining power of India :Enhanced because India is the
largest consumer of gold jewellery.
Threat of Substitutes:
 Substitutes: Real assets, Stock market, Bank deposits &
mutual fund investment, Other types of jewellery like
imitation jewellery, bagasra jewellery, fashion jewellery.
 Second preferred investment behind bank deposits.

Barriers to entry
 Skilled manpower essential
 Advanced technology required
 The Macroenvironment

• The company and all of the other actors operate in a

larger macro environment of forces that shape
opportunities and pose threats to the company.
The Company’s Macroenvironment
 Demographic:
 The study of human populations in terms of size,
density, location, age, gender, race, occupation, and
other statistics.
 Marketers track changing age and family structures,
geographic population shifts, educational
characteristics, and population diversity.
Mobilink-
Disney D
100 Mobile
Phone
 Economic Environment

•Consists of factors that affect consumer purchasing power and

spending patterns.
 Natural Environment

 Involves the natural

resources that are needed
as inputs by marketers or
that are affected by
marketing activities.
Factors Impacting the Natural Environment

Shortages of Raw Materials

Increased Pollution

Increased Government Intervention

Environmentally Sustainable Strategies

 Toyota

Can today's environmental thinking inspire tomorrow's

technology? 

That's why we spend an average of nearly one million dollars

an hour on R&D to develop the cars and technologies of the
future - cars that deliver higher fuel economy with lower
vehicle emissions. We will continue to invest in R&D,
moving even closer to our vision of the ultimate eco-car. 
 Technological Environment
 Changes rapidly.
 Creates new markets and opportunities.
 Challenge is to make practical, affordable products.
 Safety regulations result in higher research costs and
longer time between conceptualization and introduction
of product.
A Fifth of the Cost, and No Jetlag

In late 2008, the IBM’s Academy of Technology held a Virtual

World Conference and then an Annual Meeting, hosted in a
secure Second Life environment with a conference space
specially designed by IBMfor keynotes, breakout sessions, a
simulated Green Data Center, a library, and various areas for
community gathering.
 Political Environment

Includes Laws,
Increasing Legislation
Government
Agencies, and
Pressure Groups that
Changing Government
Influence or Limit Agency Enforcement
Various
Organizations and
Individuals In a Increased Emphasis on Ethics
Given Society. & Socially Responsible Actions
 Cultural Environment

 The institutions and other forces that affect a

society’s basic values, perceptions,
preference, and behaviors.
 Core beliefs and values are passed on from
parents to children and are reinforced by
schools, churches, business, and government.
Thank You