Lecture 4- Understanding the fundamentals of

Marketing

Session Objectives
• Describe the environmental forces that affect the company’s
ability to serve its customers

Tajamul Islam-Symbiosis Institute of Management Studies-

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 The Marketing Environment
• The marketing environment includes the actors
and forces outside marketing that affect
marketing management’s ability to build and
maintain successful relationships with target
customers.
• Understanding the environment is the real
starting point of marketing.
• Opportunities and threats
• An era of disruption
• Macroenvironment and
Microenvironment
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Tajamul Islam-Symbiosis Institute of Management Studies-
Pune
 PESTLE
POLITIC
AL

ECOLOGI ECONOM
CAL IC

THE MACRO-
ENVIRONME
NT

SOCIO-
LEGAL CULTUR
AL

TECHN
O-
LOGICA
L of Management Studies-
Tajamul Islam-Symbiosis Institute
Pune
 Political Environment
• Economic and social orientation of the main political parties
• Political stability
• Nature and strength of religious, cultural and social organisations
• Role of media
• Influence of pressure groups/lobbies

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When the Indian government launched its own cola

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 Some recent examples
• GST and Demonetisation in India
• Brexit
• Huawei Ban by US government
• EU General Data Protection Regulation (GDPR)

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Pune
 Economic Environment
The economic factors that affect consumer purchasing power and spending
patterns.
• Gross domestic product (GDP) • Credit Availability
• Price Inflation • Savings rate
• Exchange rates • Foreign exchange reserves
• Income distribution
• Tax rates
• Disposable income
• Prices of important materials
• Purchasing power
• Interest rates
• Labour scene (cost, skill
availability)
• Wages
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Socio- cultural environment
• Culture
• Subculture
• Social class
• Traditions
• Beliefs
• Values
• Lifestyles
• Demographics- Population, Changing
nature of households, Increasing Diversity,
Changing role of women
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Pune
Tajamul Islam-Symbiosis Institute of Management Studies-
Pune
 Technological Environment
Marketers must start thinking now
about 5G, to capitalize on the
opportunities when it launches
• Most dramatic force in changing commercially next year, writes Rose
the marketplace Tsou, head of international, Verizon
• New products, opportunities Media

• Concern for the safety of new

products
 Legal environment
• Businesses operate within the framework of the prevailing legal
environment
• Corporate affairs
• Tax laws
• Consumer protection
• Employee protection
• Environmental protection
• Regulations on products, packaging and pricing

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Pune
 The Ecological Environment
• The natural environment is the physical environment and the natural
resources that are needed as inputs by marketers or that are affected by
marketing activities
•Trends in the Natural Environment
• Growing shortages of raw materials
• Increased pollution, climate, ecology
• Increased government intervention
• Developing strategies that support environmental sustainability

Tajamul Islam-Symbiosis Institute of Management Studies-

Pune
Tajamul Islam-Symbiosis Institute of Management Studies-
Pune
As Delhi Chokes, Air Purifier Brands Cash In With Ads

• Brands such as Xiaomi, Eureka Forbes, Blueair (HUL), Panasonic,

Honeywell and Sharp have seen a multi-fold rise in demand for air
purifiers recently.
• The air purifier market in India was pegged at Rs 200 crore in 2016, it
is expected to reach Rs 1,400 crore by 2021, as per a report.
• Eureka Forbes is the market leader in the category with the maximum
market share in terms of revenue generated followed by Panasonic and
Sharp.

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Pune
 Microenvironment

Microenvironment consists of the actors close to the company that affect its
ability to serve its customers—

the company, suppliers, marketing intermediaries, customer markets, competitors

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Pune
 The Company
In designing marketing plans, marketing management takes other company groups
into account.
• Top management
• Finance
• R&D
• Purchasing
• Operations
• Accounting

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Pune
 Suppliers
• Provide the resources to produce goods and
services
• Treat as partners to provide customer value

• In US alone, Honda purchases more than $23

billion worth of auto parts and materials
annually from 557 suppliers.
• Outside purchases represent about 75 percent
of the cost of making a Honda vehicle.

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Pune
 KFC chicken crisis
• KFC switched its delivery contract in
Britain to DHL over its long-term
partner Bidvest.

• KFC had to close over 600 of its

restaurants due to depleted supplies of
ingredients in February 2018.

Tajamul Islam-Symbiosis Institute of Management Studies-

Pune
KFC uses cheeky print
advert to apologise for
chicken shortage….

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Pune
 Marketing Intermediaries
• Marketing intermediaries are
firms that help the company to
promote, sell, and distribute its Physical
goods to final buyers. Resellers distribution
firms

Marketing
Financial
services
intermediaries
agencies

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Pune
 Competitors

• Firms must gain strategic advantage by positioning their offerings

strongly against competitors’ offerings in the minds of consumers.

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 Customers
• Consumer markets
• Business markets
• Reseller markets
• Government markets
• International markets

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 Views on Responding

“There are three kinds of companies: those who make things happen,
those who watch things happen, and those who wonder what’s
happened.”

Tajamul Islam-Symbiosis Institute of Management Studies-

Pune
• https://youtu.be/Etyt4osHgX0?t=923

Tajamul Islam-Symbiosis Institute of Management Studies-

Pune