marketing environment presentation - unitedworld school of business

7/28/2019 Marketing Environment Presentation - Unitedworld School of Business

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1] MARKETING ENVIRONMENT


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MARKETING ENVIRONMENT

Marketing Environment can be defined as the internal or external

factors that affects the marketing strategies of a particular organization or

goods and services.

It basically refers to factors and forces that affect a firms ability to build

and maintain successful relationships with customers.

There are three levels of Marketing Environment, which are as follows:

Micro Environment- small forces within a company that affect its ability

to serve its customers.Meso Environment- the industry in which a company operates and the

industrys market.

Macro Environment- larger societal forces that affect the micro

environment.


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MARKETING

ENVIRONMENT

DEMOGRAPHICENVIRONMENT

ECONOMIC

ENVIRONMENT SOCIAL-

CULTURALENVIRONMENT

NATURAL

ENVIRONMENT

TECHNOLOGICAL

ENVIRONMENT

POLITICAL

ENVIRONMENT


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DEMOGRAPHIC ENVIRONMENTWORLDWIDE POPULATION GROWTH:

The world population is growing at an explosive

rate. It is expected to exceed 7.9 billion by the year

2025. Moreover, population growth is higher in

countries which can least afford it. A growing

population does not mean growing markets, unless

these markets have sufficient purchasing power.Nonetheless, companies that carefully analyze their

markets can find major opportunities.

POPULATION AGE M IX:

National population vary in their age mix. Some

have a very young population while some have highdensity of old population. A company will market its

products specifically to the greater population in a

specific country. For example, marketers will target

youth segments where the population is young.

Population mix can also be on the basis of literacy.


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ECONOMIC ENVIRONMENT

I NCOME DISTRIBUTION:

In an economy, developed or developing, the

income of people are unevenly distributed. Some fall

in the low level income category, while some in the

high level income category. Generally, in adeveloping nation, the population with a low level

income is much higher than the high level. Therefore,

marketers carefully analyze under which income

criteria does their target segment fall and hence,

undertake their marketing strategies. Economic

Marketing Environment refers to the purchasing

power of potential customers and the ways in which

people spend their money.


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SOCIAL - CULTURAL ENVIRONMENT

Society shapes the beliefs, values, and

norms that largely define consumer tastes

and preferences. People absorb, almost

unconsciously, a world view that defines

their relationships to themselves, to others,to organizations, to society, to nature, and

to the universe. The diversity in the world

is not only restricted to topography but also

in the languages, cultures as well asreligious beliefs. In this era of

globalization, organizations cater to the

culture of each country where it functions

or operates.


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NATURAL ENVIRONMENTThe deterioration of the natural

environment is a major global problem.

There is great concern regarding green

house gases, depletion of the ozone layer,

global warming and shortages of water. It

impacts the marketing in a large way asconsumers often appear conflicted about

product decisions that affect the natural

environment.

Corporate Environmentalism can be

defined as the recognition of the

importance of environmental issues facing

the firm and the integration of those issues

into the firms strategic plans.


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TECHNOLOGICAL ENVIRONMENT

One of the most dramatic forces shapingpeoples lives is technology. Through the

years technology has released such

wonders like penicillin, open-heart surgery,

submachine gun, etc. It also released

mixed blessing such as cell phones and

video games.

Every new technology is a force for

creative destruction. The number of majornew technologies discovered affects the

economys growth rate. Marketers should

monitor the regular trends in technology.


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POLITICAL ENVIRONMENT

The political and legal environment consistsof laws, government agencies, and pressure

groups that influence and limit various

organizations and individuals. Sometimes

these laws also create new opportunities forbusiness.

Two major trends in the political environment

are:

Increase in business legislation

Growth of special interest groups


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2] GLOBAL MARKETINGENVIRONMENT


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The Demographic Environment

The World population is showing explosive growth (totaled 6.1billion in2001 and will exceed 7.9 billion by the year 2025).

Growth rate : Developed Nations - 0.6%

Developing Nations - 2%

Young population is more in Developing Nations and in SouthAsia. So, marketers caters more to the youth segment.

Literacy rate is growing at a high rate. Hence the consumers arenow more aware with new products and services.


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Economic Environment

As per World Bank, GDP of South Asia is estimated at1.1Trillion (2.3%of worlds GDP)

Growing at 8.6%per annum.

But Per Capita GDP is low.

Income level is rising but still large number of population is

under low level category.

Most of the countries are now turning into free economy byaccepting liberalization.


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Natural Environment

In western Europe, green parties have vigorouslypressed for public action to reduce industrialpollution.

In the United States, Sierra club and Friends or theEarth carry these concerns into political and socialaction.

The Soap Industry increased its productsbiodegradability.


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Technological Environment

Accelerating pace of change.

Unlimited opportunities for innovation.

Varying R&D Budgets.

Increased regulation of technological change.


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Political-Legal Environment

Increase in Business Legislation.

Less govt. intervention.

Growth of Special interest Groups.

Safety

Information

Choice

Representation

Redressal

Consumer Education


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3] INDIAN MARKETINGENVIRONMENT


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Characteristics of 21st Century

knowledge and information based society

Global networking.

High mobility of population from rural to urban areas.

Increasing productivity.

Reliance on innovation and creativity

Conscious society-customer aware of his rights andobligations.


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Emerging Trends

Emergence of trade blocked.

Population explosion.

Rapid technological changes.

Social changes.

Literacy levels.

World as a global economic village.


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Market Scenario

The entire world is a boundary less global villagedue to it telecom and transport revolution.

Customers needs, wants, desires, values and ethicsare changing day by day.

Customers want more options and alternatives.

There is a shift from sellers market to buyersmarket.


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Organisations have to look for their competitiveedges and develop on their strengths and explore

new opportunities.

Organisations have to offer value added focused

services to attract customers.

CONT


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India's Strengths-marketing Prospective

Huge resources both human and natural.

Inflation under check.

Stability of government irrespective of ideology.

Capable of providing food to many nations.

Matured democracy.

Global it hub.


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Weaknesses Population growth unchecked.

Fiscal deficit.

Inadequate infrastructure

Slow judiciary.

Complicated procedures and systems.

Unexpected high level of unethical practices.

R&D base is very low.

27% population below poverty line.


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4] PESTEL ANALYSIS


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ORGANIZATION

Political

Economic

Legal

Social

Technological

Environmental

PESTEL ANALYSIS


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What is PESTEL Analysis?

PEST stands for the analysis of the external factors which is

beneficial when conducting research before beginning a newproject or to help conduct market research. It is a tool for

analyzing organizations macro environment .

The origin of this framework is difficult to establish however

some data is available which refers to the ETPS environment by

Francis J. Aguilar. Later it was reorganized as STEP by Arnold

Brown(1967).Later in 1980s several authors included variations from

taxonomy classifications and thus formed PEST or PESTLE

Analysis framework.


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POLITICAL FACTORS

Government policies

Government terms and change

Trading policies

Pressure groups

Funding, grants and initiatives

Wars and conflict


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ECONOMIC FACTORS

Home economy situation and trends.

Overseas economies and trends.

General taxation.

Taxation specific to product/services.

Seasonal/weather issues.

Market and trade cycles.

Industry-specific factors .

Market routes and trends.

Customer/end-user drivers.


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SOCIAL FACTORS

Life trends.

Demographics.

Consumer attitudes and opinions.

Media views.

Law changes affecting social factors.

Brand, company, technology image.

Consumer buying patterns .

Fashion and role models .

Ethnic/religious factors


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TECHNOLOGICAL FACTORS

Competing technology development.

Technological advancements.

Research and development funding. Associated/dependent technologies .

Replacement technology /solutions.

Maturity of technology.

Information and communications.


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ENVIRONMENTAL FACTORS

Environmental legislation.

Public awareness of environmental issues.

Political agenda on the environment.

Consumer buying patterns.

CSR awareness and expectations.


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LEGAL FACTORS

Current Legislation

Future Legislation

European/ International legislation

Regulatory bodies and processes.


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PESTEL ANALYSIS

ofRETAIL INDUSTRY


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RETAIL INDUSTRY

Retail consists of the sale of goods or merchandise from a fixed

location, such as a department store, boutique or kiosk, or by mail, insmall or individual lots for direct consumption by the purchaser.

Retailing may include subordinated services, such as delivery.

Purchasers may be individuals or businesses. In commerce, a

"retailer" buys goods or products in large quantities frommanufacturers or importers, either directly or through a wholesaler,

and then sells smaller quantities to the end-user. Retail establishments

are often called shops or stores. Retailers are at the end of the supply

chain. Manufacturing marketers see the process of retailing as a

necessary part of their overall distribution strategy. The term "retailer"

is also applied where a service provider services the needs of a large

number of individuals, such as a public utility, like electric power.

PESTEL ANALYSIS OF RETAIL INDUSTRY


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PESTEL ANALYSIS OF RETAIL INDUSTRY

Environmental regulations and protection.

Tax policies.

Interest rates & monetary policies.

Contract enforcement law.

Consumer protection.

Employment laws.

Government organization / attitude.

Competition regulation.

Political Stability.

Safety regulations.

POLITICAL ECONOMICAL

Economic growth

Interest rates & monetary policies

Government spending

Unemployment policy

Taxation

Exchange rates

Inflation rates

Stage of the business cycle

Consumer confidence

SOCIAL TECHNOLOGICAL


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Income distribution

Demographics, Population growthrates, Age distribution

Labor / social mobility

Lifestyle changes

Work/career and leisure attitudes

Entrepreneurial spirit

Education

Fashion, hypes & Living conditions

Health consciousness & welfare,

feelings on safety

SOCIAL

Government research spending

Industry focus on technological effort

New inventions and development

Rate of technology transfer

Life cycle and speed of technological

obsolescence

Energy use and costs

Changes in Information Technology

Changes in Internet

Changes in Mobile Technology

TECHNOLOGICAL


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Consumer buying behavior.

Buying pattern

Socio cultural effect on purchasing.

ENVIRONMENTAL

Retail industry sourcing and overseas

Corporate Social Responsibility.

Tax issue.

M & A expansion and consolidation.

LEGAL


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INTRODUCTION

Liberalization of economy for a country refers to set itfree it from direct or physical controls imposed by the

government.

Economic reforms were based on the assumption thatmarket forces could guide the economy in a more effectivemanner than government control.

Examples of one of other undeveloped countries likeKorea, Thailand, Singapore, etc. that had achieved rapideconomic development as a result of liberalization were keptin consideration.


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A Balance of Payments crisis in 1991 which pushed the

country to near bankruptcy.

The Rupee devalued and economic reforms were enforcedupon India.

India central bank had refused new credit and foreign

exchange reserves had reduced to the point that Indiacould hardly finance three weeks worth of imports.

CAUSES OF INDIAN LIBERALIZATION


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Elimination of industrial licensing and registration.

Liberalizing the MRTP act.

Freedom for expansion and production.

Increase in the investment limit of the small industries.

Freedom to import capital goods.

Freedom to import technology.

Free determination of interest rates.

ACTIONS TAKEN DURING LIBERALIZATION


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Gigantic Annual growth in GDP.

A rate of growth that will double average income in adecade.

Rapid Growth in all manufacturing as well as servicesectors.

Exports of information technology enabled servicespredominantly strong.

ECONOMIC IMPACT OF LIBERALIZATION


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Increase in rate of economic growth.

Increase in competitiveness of industrial sector.

Reduction in poverty and inequality.

Fall in fiscal deficit.

Control on prices.

Decline in deficit of BOP.

Increase in Efficiency.

POSITIVE IMPACT OF LIBERALIZATION


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Less importance to agriculture.

Pressure by IMF and World Bank.

More depending on Foreign Debt.

Dependence on Foreign technology.

Undue importance to Privatization.

Problem of Unemployment.

NEGATIVE IMPACT OF LIBERALIZATION


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Indian economy had experienced major policy changesin early 1990s.

The new economic reform, popularly known as,

Liberalization, Privatization and Globalization (LPGmodel) aimed at making the Indian economy as fastest

growing economy and globally competitive.

The series of reforms undertaken with respect toindustrial sector, trade as well as financial sector aimedat making the economy more efficient.

INTRODUCTION

C C S


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The rate of growth of the GDP of India has been on the

increase from 5.6 % during 1980-90 to 7 % in the 1993-

2001 period.

The cumulative FDI inflows from 1991 to September2006 were Rs.1, 81,566 crores (US $ 43.29 Bn).

In respect of market capitalization, India is in the fourth

position with $ 894 Bn after the US ($ 17,000 Bn)

The foreign exchange reserves of India have enlarged.

EFFECTIVE IMPACTS


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Campus Overview

907/A Uvarshad,

Gandhinagar

Highway, Ahmedabad

382422.

Ahmedabad Kolkata

Infinity Benchmark, 10th

Floor, Plot G1,

Block EP & GP,

Sector V, Salt-Lake,

Kolkata 700091.

Mumbai

Goldline Business Centre

Linkway Estate,

Next to Chincholi Fire

Brigade, Malad (West),

Mumbai 400 064.


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marketing environment presentation - unitedworld school of business

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