FUNCTIONAL

MANAGEMENT PROJECT
TOPIC - MARKET ENVIRONMENT AND
ADVERTISEMENT

SUBMITTED TO:- SUBMITTED BY:-

MS. NITIKA GAGANDEEP SINGH
20610
BCOM LLB
 What Is a Marketing Environment?

• A marketing environment encompasses all the internal and external

factors that drive and influence an organization's marketing activities.
• Marketing managers must stay aware of the marketing environment to
maintain success and tackle any threats or opportunities that may
affect their work.
• In this article, we'll explore the components of the marketing
environment, their influence on marketing decisions, and how
businesses can navigate these complexities for successful campaigns.
• As we delve into the complexities of the marketing environment, you
can unlock a free trial with Wrike. From workflows to real-time
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 Why is a marketing environment important?

• A marketing environment is vast and diverse, consisting of controllable and

uncontrollable factors. A good grasp of your marketing environment helps to:
• Identify opportunities: Understanding your marketing environment helps you
notice and take advantage of market opportunities before losing your edge. For
example, say your marketing team sees an uptick in digital buying over in-shop
sales. You may decide to allocate more resources to your online marketing funnel
to drive more sales.
• Identify threats: Studying your marketing environment alerts you to potential
threats which may affect your marketing activities. For example, a market leader
could diversify their product portfolio to compete with your organization.
Foreknowledge of this can help you restrategize your marketing efforts to maintain
and grow your market share.
• Manage changes: Paying attention to the marketing environment also helps
manage changes and maintain growth in a dynamic economy. Marketing managers
can forecast and determine timely marketing campaign strategies by monitoring
their marketing environment.
 Features of a marketing environment

• The features of a marketing environment are typically:

1. Dynamic: The factors that affect marketing environments constantly change
over time. These could be technological advancements, industry regulations,
or even customer tastes.
2. Relative: Marketing environments are relative and unique to each
organization. A specific product from your company may sell quicker in the U.S.
than in Europe because of distinctions in the marketing environment.
3. Uncertain: Market forces are unpredictable. Even with constant study, you may
face unexpected threats or opportunities in your marketing operations. Adept
marketers must be able to learn, pivot, and strategize quickly to achieve their
goals.
4. Complex: The many internal and external forces in a marketing environment
make it complex, with various essential moving parts. For example, you must
coordinate your team’s ability and resources with stakeholder expectations,
customer satisfaction, and other ethical and environmental concerns.
 Types of marketing environments

• There are two significant types of marketing

environments:
a. Internal marketing environments
b. External marketing environments
• You can break down the external marketing
environment further into:
i. Micromarketing environment
ii. Macro marketing environment
What is an internal marketing environment?

• An internal marketing environment consists of

factors that fall within your control and impact
your marketing operations, including your
organization's strengths, weaknesses, uniqueness,
and competencies.
• Think of essential marketing elements such as your
people and teams, the quality of your product or
service, capital assets and budgets, and company
policy. Internal marketing environment factors
are controllable.
What is an external marketing environment?

• The external marketing environment includes all factors

that do not fall within your organization's control,
including technological advancements, regulatory
changes, social, economic, and competitive forces.
• These factors may be controllable or uncontrollable,
but defining and studying their changes and trends
gives your business and marketing team some power to
stay the course. The external marketing environment
can be broadly categorized into micro and macro
marketing environments.
What is a microenvironment in marketing?

• The microenvironment in marketing is closely

linked to your business and directly affects
marketing operations. It includes factors like
customers, suppliers, business partners,
vendors, and even competitors.
Microenvironment factors are controllable to
some extent.
 What is a macro marketing environment?

• Your macro marketing environment is made up of all the factors beyond the
control of your organization. An easy way to remember these factors is by using
the PESTLE acronym, which stands for:
• P: Political factors
• E: Economic factors
• S: Social and demographic factors
• T: Technological advancement factors
• L: Legal and regulatory factors
• E: Environmental factors
• These factors are uncontrollable and can impact your business and marketing
operations to a significant extent. Political changes, for example, may have a
massive effect on how you can market and conduct your business in certain
regions.
• Your macro marketing environment is continually changing. It’s vital to keep a
close watch to identify potential threats or opportunities to your business. For
instance, an unpredictable environmental change, like the COVID-19 pandemic in
2020, can significantly change the way we work, market, and do business globally.
 Examples of a marketing environment

• To help you understand the effects of different marketing environments, let's

look at some examples.
• Internal marketing environment: Your internal company culture has an impact
on how your employees behave, which in turn affects your marketing
operations. An organization that emphasizes teamwork and collaboration, for
example, will have more engaged employees. This, in turn, will help the
organization perform better than competitors who do not share these values.
• Micro marketing environment: Say your business relies on a network of
suppliers, distributors, and retailers to get your products to the customer. It's
wise to build good relationships with these vendors, as any changes can
influence your marketing strategy.
• Macro marketing environment: The shockwaves from the COVID-19 pandemic
are still hitting marketers — first, social distancing and remote work changed
how we market goods and services. Now, inflation and the rising cost of living
loom large over the macro marketing environment.
What are the challenges of defining a marketing environment?

 We can't downplay the benefits of defining and monitoring your

marketing environment. Still, there is only so much we can accurately
predict. Even with technological advancements, predictive software
tools, and a keen eye on the marketing environment, some changes
can't be forecasted or controlled.
 Techniques that work in one marketing environment may not work in
the next. For businesses operating in multiple regions, this may prove
a considerable challenge. The speed of change in the macro
marketing environment may make it seem unnecessary to monitor
and predict the environment.
 Business and marketing teams must stay nimble, accept changes
quickly, and leverage their customer service and satisfaction strengths
to maintain business success and a positive marketing environment.
 ADVERTISEMENT
• Advertising is an important tool of promotion. Advertisement is a non-
personal presentation of an idea or a product (where as personal selling
or salesmanship help in personal promotional.) Advertisement
supplements personal selling to a great extent. Advertising has, acquired
great importance in the modern era
characterized by tough competition in the market and fast changes in
technology, and fashion and taste customers.
• Advertising is used for communicating business information to the
present and prospective customers. It usually provides information
about the advertising firm, its product qualities, place of availability of its
products, etc. Advertisement is indispensable for both the sellers and
the buyers. However, it is more important for the sellers. In the modern
age of large scale production, producers cannot think of pushing sale of
their products without advertising them.
 What is Advertising?

• Advertising is the dissemination of information

concerning an idea, product or service to induce action in
accordance with the intent of the advertiser. According
to William J. Stanton, “Advertising consists of all the
activities involved in presenting to an audience a non-
personal, sponsor-identified, paid-for message about a
product or organization.”
• Advertising is any paid form of non-persona:
presentation and promotion of ideas, goods or services
of an identified sponsor. The message which is presented
or disseminated is known as ‘advertisement’.
 Features of Advertising
• American Marketing Association has defined advertising as “any paid form of non-
personal presentation and promotion of ideas goods and services of an identified
sponsor”. This definition reveals the following features of advertising:
• It is a paid foam of communication. Advertisements appear in newspapers, magazines,
television or cinema screens because the advertiser has purchased some space or time to
communicate information to the prospective customers.
• It is non-personal presentation of message. There is no face-to-face direct contact with
the customers. That is why, it is described as non-personal salesmanship. It; is a non-
personal form of presenting products and promoting ideas and is complementary to
personal selling. It simplifies the task of sales-force by creating awareness in the minds of
potential customers
• The purpose of advertising is to promote idea about the products and service, of a
business. It is directed towards increasing the sale of the products and services of a
business unit.
• Advertisement a issued by an identified sponsor. Non disclosure of the name of the
sponsor in propaganda may lead to distortion, deception and manipulation.
Advertisement should disclose or identify the sources of opinions and ideas it presents.
 Objectives of Advertising
• The fundamental purpose of advertising is to sell something – a product, a service or
an idea. In addition to this general objective, advertising is also used by the modern
business enterprises for certain specific objectives which are listed below :
• To introduce a new product by creating interest for it among the prospective
customers.
• To support personal selling programme. Advertising maybe used to open customers’
doors for salesman.
• To reach people inaccessible to salesman.
• To enter a new market or attract a new group of customers.
• To light competition in the market and to increase the sales as seen in the fierce
competition between Coke and Pepsi.
• To enhance the goodwill of the enterprise by promising better quality products and
services.
• To improve dealer relations. Advertising supports the dealers in selling he product.
Dealers are attracted towards a product which is advertised effectively.
• To warn the public against imitation of an enterprise’s products.
 Functions of Advertising
• Advertising has become an essential marketing activity in the modern era of large scale production and serve
competition in the market. It performs the following functions:
• Promotion of Sales. It promotes the sale of goods and services by informing and persuading the people to buy them. A
good advertising campaign helps in winning new customers both in the national as wet] as in the international
markets.
• Introduction of New Product. It helps the introduction of new products in the market. A business enterprise can
introduce itself and its product to the public through advertising. A new enterprise can’t make an impact on the
prospective customers without the help of advertising. Advertising enables quick publicity in the market.
• Creation of Good Public Image. It builds up the reputation of the advertiser. Advertising enables a business firm to
communicate its achievements in an effort to satisfy the customers’ needs. This increases the goodwill and reputation
of the firm which is necessary to fight against competition in the market.
• Mass Production. Advertising facilitates large-scale production. Advertising encourages production of goods in large-
scale because the business firm knows that it will be able to sell on large-scale with the help of advertising. Mass
production reduces the cost of production per unit by the economical use of various factors of production.
• Research. Advertising stimulates research and development activities. Advertising has become a competitive
marketing activity. Every firm tries to differentiate its product from the substitutes available in the market through
advertising. This compels every business firm to do more and more research to find new products and their new uses.
If a firm does not engage in research and development activities, it will be out of the market in the near future.
• Education of People. Advertising educate the people about new products and their uses. Advertising message about
the utility of a product enables the people to widen their knowledge. It is advertising which has helped people in
adopting new ways of life and giving-up old habits. It has contributed a lot towards the betterment of the standard of
living of the society.
• Support to Press. Advertising provides an important source of revenue to the publishers and magazines. It enables to
increase the circulation of their publication by selling them at lower rates. People are also benefited because they get
publications at cheaper rates. Advertising is also a source of revenue for TV network.
 Difference between Advertising and Publicity

• Advertising differs from publicity in regard to the following points :

1. Paid/non-paid from: Advertisement is a paid form of
communication. Its cost is borne by the advertiser But publicity is any
non-paid mention of an organization or its ideas or products in the
news Media. Publicity cannot be purchased in the usual sense of the
term. Any institution can come to the attention of the public by
being newsworthy. It has not to pay anything for the publicity, but
has to supply the necessary information to the news media.
2. Identification of sponsor: Advertisement is issued by an identified
sponsor. Publicity does not need an identified sponsor
3. Control over message: In advertising, the advertiser exercises control
over the type, size, duration, and frequency of the message But in
case of publicity, the control lies with the publicity media.