Marketing Environment

By: Akash Pratap Akshi Bhagia Amanpreet Singh

 There are three types of companies : those who make things happen, those who watch things happen those who wonder what has happened

Marketing Environment
The actors and forces that affect marketing management s ability to build and maintain successful relationships with the target customers.

Marketing Environment
Micro Environment Macro Environment

Micro Environment
Actors close to the company that affects its ability to serve the customer.

The Company, Suppliers, Marketing intermediaries, Customer markets, Competitors, Publics.

These actors can be controlled by the company with its own action - controllable factors.

Macro Environment
Consists of larger societal forces that affect the micro environment

Demographic, Economic, Natural, Technological, Political, and Cultural forces

Cannot be controlled by the company (at least in the short run) - Uncontrollable factors

Customers
The company must study its customer markets closely Consumer markets
Individuals and households that buy goods and services for personal consumption.

Business markets
Buy goods and services for further processing or for use in their production process.

Reseller markets
Buy goods and services in order to resell them at a profit

Government markets
Agencies that buy goods and services in order to produce public services or transfer them to those that need them

International markets
Buyers of all types in foreign countries

Cosmopolitan Consumer The Emerging Marketing Reality published in Marketing Mastermind, Jan 2011 A Cosmopolitan Consumer -have a fairly homogeneous consumption pattern across the world. Savings nation to Spending nation Impulse purchase Brand loyal to Experimental Switchers. Segments within segments. These value system elements have come from western world.

Suppliers
Firms and individuals that provide the resources needed by the company and its competitors to produce goods and services.

- Supply Availability - Supply Costs

The Mc Donald s story

Works closely with its suppliers Practices strong backward integration
buys directly from farms rather than market.

Develops its suppliers to encourage improvements in quality standards and world class manufacturing capabilities.
Enables Mc Donalds to keep a tab on quality and improve value delivery.

Competitors
Firm must secure a strategic advantage over competitors by successful positioning No single competitive strategy is best for all companies. Should consider & compared its own size and industry position

 Examples: The ministry of tourism Incredible India campaign for which it has solicited bids from companies. The biggest challenge for the marketers will be to take the likes of Asian giants like Malaysia, Singapore, Hong Kong, South Korea and China.
Source :4Ps Business and Marketing Volume VI, Issue 4 31 Dec 2010 27 Jan 11

Telecom Wars
Heightened competition in the Indian Telecom industry which is waging a tariff war. The new regime of per second billing launched by Tata Docomo started the war cry with 1 paise per second Rcom joined the battle by offering Rs. 50 paisa per minute calls Uninor reciprocated by lowering down to Rs. 29 paise per minute in 2009. By October all operators started offering 1 paise per second tariff. In order to sustain subscriber growth the leading players Airtel, Vodafone had to follow suit. However this pricing strategy followed by new entrants will not last longer as it ll make them difficult to sustain in the market at such prices and hence they ll be candidates for consolidation in the next couple of years.
Source: The Hindu Survey of Indian Industries 2010.

The Company
Top management is responsible for setting the company s mission, objectives, broad strategies, and policies. Marketing managers must make decisions within the parameters established by top management. Marketing managers must also work closely with other company departments. All departments must think consumer .

Marketing 3.0 - Philip Kotler

Brand Identity is about positioning your brand in the minds of the consumers Brand Image is about acquiring the consumer s mind share. Brand Integrity is about fulfilling what is claimed through the positioning and brand value through solid differentiation.

Values-driven marketing
Identify the anxieties and desires of the consumers to target their minds, hearts and spirits Share dream with consumers Company s Mission, Vision, and Values Corporate DNA Deliver satisfaction at the product level with realizing emotional aspirations and practicing compassion. Not just Profitability and Returnability but also sustainability Brand that is better, different, and that makes a difference

Marketing Intermediaries
Resellers
firms that help the company to promote, sell, and distribute its goods to final buyers.

Physical distribution firms

warehouses

Marketing service agencies

market research firms, advertising agencies, media firms

Financial intermediaries
banks, credit companies, insurance companies, etc.

Publics
has an actual or potential interest in or impact on an organization s ability to achieve its objectives. A company should prepare a marketing plan for all of their major publics as well as their customer markets.

Financial public - influence the company s ability to obtain funds. Media public - carry news, features, and editorial opinion. Government public - take developments into account. Citizen-action public - a company s decisions affected by consumer org. Local public - includes neighbourhood residents and community org. General public - a company must be concerned about the general public s attitude toward its products and services. Internal publics - workers, managers, volunteers, and the BoD

Book: No Money Marketing by Jessie Paul

Every product has its ecosystem. refers to the universe of people and Media that impact the decision maker. It varies with product and geography . More complex the service or a product, and the more developed economy, the more players are likely to be in the ecosystem.

Book: No Money Marketing by Jessie Paul

The marketer must map his product s ecosystem. Think from buyers perspective. In the flat word, elements interact with each other and amplify the message. Elements may interact directly or indirectly with the customers marketer should try to cover more and more no. of elements. Marketer must place his money in few touch points