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    Chapter#3: Analyzing The Marketing Environment

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    Zahid Islam
    The document discusses the marketing environment and its impact on marketing management. It describes the microenvironment as consisting of actors close to the company like the company itself, suppliers, marketing intermediaries, customer markets, competitors, and publics. The macroenvironment includes broader societal forces like demographic, economic, natural, technological, political, and cultural factors. Marketers must understand how these internal and external forces influence customers and shape opportunities and threats to react or proactively manage their marketing strategies.

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    Chapter#3: Analyzing The Marketing Environment

    Uploaded by

    Zahid Islam
    20 views23 pages
    The document discusses the marketing environment and its impact on marketing management. It describes the microenvironment as consisting of actors close to the company like the company itself, suppliers, marketing intermediaries, customer markets, competitors, and publics. The macroenvironment includes broader societal forces like demographic, economic, natural, technological, political, and cultural factors. Marketers must understand how these internal and external forces influence customers and shape opportunities and threats to react or proactively manage their marketing strategies.

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    MKT-3

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    The document discusses the marketing environment and its impact on marketing management. It describes the microenvironment as consisting of actors close to the company like the company itself, suppliers, marketing intermediaries, customer markets, competitors, and publics. The macroenvironment includes broader societal forces like demographic, economic, natural, technological, political, and cultural factors. Marketers must understand how these internal and external forces influence customers and shape opportunities and threats to react or proactively manage their marketing strategies.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    20 views23 pages

    Chapter#3: Analyzing The Marketing Environment

    Uploaded by

    Zahid Islam
    The document discusses the marketing environment and its impact on marketing management. It describes the microenvironment as consisting of actors close to the company like the company itself, suppliers, marketing intermediaries, customer markets, competitors, and publics. The macroenvironment includes broader societal forces like demographic, economic, natural, technological, political, and cultural factors. Marketers must understand how these internal and external forces influence customers and shape opportunities and threats to react or proactively manage their marketing strategies.

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    © All Rights Reserved
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    of 23

    Chapter#3

    Analyzing the Marketing Environment


    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 customers.
    The Company’s Microenvironment

     Microenvironment consists of the actors close to the
    company that affect its ability to serve its customers.
     It includes the company, suppliers, marketing
    intermediaries, customer markets, competitors, and
    publics.
    Actors in the Microenvironment

    Actors in the Microenvironment

     The Company: Company’s Internal Environment- functional
    areas inside a company that have an impact on the marketing
    department’s plans.
     Top management
     Finance
     R&D
     Purchasing
     Operations
     Accounting
    Actors in the Microenvironment

     Supplier: provide the resources needed to produce goods and
    services.
     Treated as partners to provide customer value
    Actors in the Microenvironment

     Marketing Intermediaries: Help the company to promote,
    sell and distribute its products to final buyers.
     Resellers
     Physical distribution firms
     Marketing services agencies
     Financial intermediaries
    Actors in the Microenvironment

     Customers: Five types of markets that purchase a company’s
    goods and services.
     International Markets
     Consumer Markets
     Business Markets
     Resellers
     Government Markets
    Actors in the Microenvironment

     Competitors: Those who serve a target market with similar
    products and services.
     Firms must gain strategic advantage by positioning
    their offerings against competitors’ offerings
    Actors in the Microenvironment

     Publics: any group that perceives itself having an interest in a
    company’s ability to achieve its objectives.
     Financial publics
     Media publics
     Government publics
     Citizen-action publics
     Local publics
     General public
     Internal publics
    The Company’s Macro-environment

    Actors in the Macro-environment

     1.Demographic Environment
     Demography: is the study of human populations in
    terms of size, density, location, age, gender, race,
    occupation, and other statistics.
     Demographic environment is important because it
    involves people, and people make up markets
     Increasing population
     Rapid growth in urban population in Asia
     In India, urban population to rise to 523 million by
    2025
    Actors in the Macro-environment

     A growing middle class
     MGI(McKinsey Global Institute) has divided the
    Indian population into 5 economic classes based on
    real annual disposable income.
     (i)Deprived households have an annual disposable
    income of less than Rs.90,000
     The poorest economic class
     Mostly unskilled or semi-skilled workers on daily wages
    Actors in the Macro-environment

     (ii)Aspirers have an annual disposable income in
    the range of Rs.90,000 to Rs.200,000
     Spend most of their income on basic
    necessities
     Small-time retailers, small farmers, etc.
     (iii)Seekers have an annual disposable income
    between Rs.200,000 and Rs.500,000.
     Mostly white-collar employees, mid-level government
    officials, newly employed postgraduates, medium-scale
    traders
    Actors in the Macro-environment

     (iv)Strivers have an annual income ranging from
    Rs.500,000 to Rs.1,000,000
     Have a stable income source and access to amenities
     Mostly professionals such as lawyers, CAs, senior
    government officials, rich farmers
     (v)Global Indians have an annual disposable income in
    excess of Rs.1,000,000
     Creamy layer in society
     Globe-trotters with a high standard of living
     Senior corporate executives, large business owners, topmost
    professionals, politicians, etc.
    Actors in the Macro-environment

     Other demographic factors:
     Growth in the rural population
     A changing family system
     The changing role of women
     Increasing diversity
    Actors in the Macro-environment

     2.Economic Environment
     Economic environment consists of factors that affect
    consumer purchasing power and spending patterns.
     Industrial economies are richer markets
     Subsistence economies consume most of their own
    agriculture and industrial output
     Developing economies can offer outstanding opportunities
    for the right kinds of products
     Value marketing involves ways to offer financially
    cautious buyers greater value—the right combination of
    quality and service at a fair price.
    Actors in the Macro-environment

     Changing Income Distribution and Consumer
    Spending Patterns
     Ernst Engel—Engel’s Law
     As income rises:
     The percentage spent on food declines
     The percentage spent on housing remains constant
     The percentage spent on savings increases
    Actors in the Macro-environment

     3.Natural Environment
     Natural environment involves the natural resources
    that are needed as inputs by marketers or that are
    affected by marketing activities.
     Trends
     Shortages of raw materials
     Increased pollution
     Increase government intervention in natural
    resource management
    Actors in the Macro-environment

     4.Technological Environment
     Most dramatic force in changing the marketplace
     Creates new products and opportunities
     Safety of new product always a concern
    Actors in the Macro-environment

     5.Political Environment
     Political environment consists of laws, government
    agencies, and pressure groups that influence or limit
    various organizations and individuals in a given society.
     Legislation regulating business
     Increased legislation
     Changing government agency enforcement
     New forms of nontariff barriers in trade
     Increased emphasis on ethics
     Socially responsible behavior
     Cause-related marketing
    Actors in the Macro-environment

     6.Cultural Environment
     Cultural environment consists of institutions and other forces
    that affect a society’s basic values, perceptions, and behaviors.
     Core beliefs and values are persistent and are passed on from
    parents to children and are reinforced by schools, religious
    institutions, businesses, and government.
     Secondary beliefs and values are more open to change and
    include people’s views of themselves, others, organization, society,
    nature, and the universe.
    Responding to the Marketing Environment


     Reactive: Passive Acceptance and Adaptation
     React and adapt to the forces in the environment.
     Companies design strategies that avoid threats and
    capitalize upon opportunities.
     Proactive: Environmental Management
     Aggressive actions to affect forces in the environment.
     Use of lobbyists, PR, advertorials, lawsuits,
    complaints, and contractual agreements to influence
    environmental forces.

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