Marketing Environment

The Marketing Environment
Dr.S.Victor Anandkumar Associate Professor Department of Management Studies Pondicherry University

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Marketing Environment
consists of the actors and forces outside marketing that affect marketing managements ability to develop and maintain successful relationships with its target customers. Includes:
o Micro-environment - forces close to the company that affect its ability to serve its customers. o Macro-environment - larger societal forces that affect the microenvironment.
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The Marketing Process

DemographicEconomic Environment
Marketing Intermediaries
TechnologicalNatural Environment
Product
Suppliers
Target Place Consumers
Price
Publics
Promotion PoliticalLegal Environment SocialCultural Environment
Competitors
The Companys Micro-environment

Companys Internal Environment - functional areas inside a company that have an impact on the marketing departments plans Suppliers - provide the resources needed to produce goods and services and are an important link in the value delivery system Marketing Intermediaries - help the company to promote, sell, and distribute its goods to final buyers. i.e. dealer
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The Companys Micro-environment

Customers - types of markets that purchase a companys goods and services Competitors - those who serve a target market with similar products and services against whom a company must gain strategic advantage Publics - any group that perceives itself having an interest in a companys ability to achieve its objectives
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Types of Customer Markets

(B2C, B2B, B2G, channel, global)
Reseller Markets
Company
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Major Forces in the Companys Macro-environment
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The Companys Macro-environment

Demographic - Population in terms of size, density, location, age, gender, race, occupation and other statistics
Economic - factors that affect consumer purchasing power and spending patterns
Natural - natural resources needed as inputs by marketers or that are affected by marketing activities
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What can you make out from the Consumption Patterns in these selected Countries?
Economic Environment
Economic Development
Changes in Income:
Value Marketing
Key Economic Concerns for Marketers
Changing Consumer Spending Patterns

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Natural Environment
Shortages of Raw Materials
Environmentally Sustainable Strategies
Factors Affecting the Natural Environment
Increased Pollution
Governmental Intervention
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The Companys Macro-environment

Technological - forces that create new technologies, creating new product and market opportunities Political - laws, agencies and pressure groups that influence and limit organizations and individuals in a given society
Cultural - institutions and other forces that affect a societys basic values, perceptions, preferences, and behaviors
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Technological Environment
Faster pace of technological change; products are outdated at a rapid pace.
Almost unlimited opportunities being developed daily in health care, space industry, robotics, and bio-genetic field. Challenge is not only technical, but also commercial make practical, affordable versions of products
Increased regulation concerning product safety, individual privacy, and other areas that affect technological changes.
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Digital Divide
[Source: World Bank an UN]
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Political Environment
Includes Laws, Government Agencies, Etc. that Influence & Limit Organizations/ Individuals in a Given Society
Increasing Legislation
Changing Government Agency Enforcement
Increased Emphasis on Ethics & Socially Responsible Actions

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A Sampling of Government Types

Insert Exhibit 6.1
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Source: Business Software Alliance IDC Global Software Privacy Study
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Cultural Environment
Peoples View of Themselves
Peoples View of Peoples View of Others the Universe Cultural Values of a Peoples View of Society Peoples View of Nature Organizations
Peoples View of Society
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Rediff.com
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Cues from the cultural environment
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Responding to the Marketing Environment

Taking a proactive approach to managing the micro-environment and the macro-environment by taking aggressive (rather than passive) actions to influence the publics and forces in the marketing environment. How? Hire lobbyists , run advertorials, press law suits, file complaints, form agreements,
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Global business environment
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A quick revision
Describe the environmental forces that affect the companys ability to serve its customers. Explain how changes in the demographic and economic environments affect marketing decisions. Explain the key changes faced by marketers from the political and cultural environment
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Marketing Environment

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Marketing Environment

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The Marketing Environment

Dr.S.Victor Anandkumar Associate Professor Department of Management Studies Pondicherry University

The Marketing Process

Target Place Consumers

Promotion PoliticalLegal Environment SocialCultural Environment

The Companys Micro-environment

The Companys Micro-environment

Types of Customer Markets

Major Forces in the Companys Macro-environment

The Companys Macro-environment

Key Economic Concerns for Marketers

Changing Consumer Spending Patterns

Environmentally Sustainable Strategies

Factors Affecting the Natural Environment

The Companys Macro-environment

Changing Government Agency Enforcement

Increased Emphasis on Ethics & Socially Responsible Actions

A Sampling of Government Types

Source: Business Software Alliance IDC Global Software Privacy Study

Cues from the cultural environment

Responding to the Marketing Environment

Global business environment

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