mm lecture 2 am

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Unit - I

Scanning and Analyzing theMarketing Environment

Arun MishraAsst. Professor

VNS Business School

(M) 9893686820

Email: [email protected]


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Analyzing the Marketing Environment

The Companys Microenvironment

The Companys Macroenvironment

Responding to the Marketing

Environment

Topic Outline


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The Marketing Environment

The marketing environment includes the

actors and forces outside marketing that

affect marketing managements ability to

build and maintain successful relationships

with customers

Microenvironment

Macroenvorinment


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The Marketing Environment

Microenvironment consists of the actors

close to the company that affect its ability

to serve its customers, the company,

suppliers, marketing intermediaries,

customer markets, competitors, and

publics


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Actors in the Microenvironment


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Top management

Finance

R&D

Purchasing

Operations

Accounting

The Company


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Provide the resources to produce goods

and services

Treated as partners to provide customer

value

Suppliers


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Help the company to promote, sell and

distribute its products to final buyers

Marketing Intermediaries


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Resellers

Physical

distributionfirms

Marketingservicesagencies

Financialintermediaries

Types of Marketing Intermediaries


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Firms must gain strategic advantage by

positioning their offerings against

competitors offerings

Competitors


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Any group that has an actual or potential interest

in or impact on an organizations ability to

achieve its objectives

Financial publics

Media publics

Government publics

Citizen-action publics Local publics

General public

Internal publics

Publics


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Demography is the study of humanpopulations in terms of size, density, location,age, gender, race, occupation, and other

statistics Demographic environment is important

because it involves people, and people makeup markets

Demographic trends include age, familystructure, geographic population shifts,educational characteristics, and populationdiversity

Demographic Environment


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Increasing population

Rapid growth in urban population in Asia

In India, urban population to rise to 523

million by 2025



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A growing middle class

MGI has divided the Indian population into

5 economic classes

Division based on real annual disposable

income



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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



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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.



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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



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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



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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



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Growth in the rural population

A changing family system The changing role of women

Increasing diversity



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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

Economic Environment


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The global financial crisis of 20072009 has

affected the consumption and production of

many products Value marketing involves ways to offer

financially cautious buyers greater valuethe

right combination of quality and service at a

fair price

Economic Environment


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Ernst EngelEngels Law

As income rises: The percentage spent on food declines

The percentage spent on housing remains

constant The percentage spent on savings increases

Economic EnvironmentChanges in Consumer Spending Patterns


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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

Environmentally sustainable strategies

Natural Environment


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Most dramatic force in changing themarketplace

Creates new products and opportunities

Safety of new product always a concern

Technological Environment


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Political environment consists of laws,

government agencies, and pressure

groups that influence or limit various

organizations and individuals in a given

society

Political Environment


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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

Political Environment


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Cultural environment consists of

institutions and other forces that affect a

societys basic values, perceptions, and

behaviors

Cultural Environment


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Core beliefs and values are persistent and

are passed on from parents to children and arereinforced by schools, religious institutions,

businesses, and government

Secondary beliefs and values are more open

to change and include peoples views of

themselves, others, organization, society,

nature, and the universe

Cultural EnvironmentPersistence of Cultural Values


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Peoples view of themselves

Yankelovich Monitors consumer segments: Do-it-yourselfersrecent movers

Adventurers

Peoples view of others

More cocooning

Cultural EnvironmentShifts in Secondary Cultural Values


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The CompanysMacroenvironment

Peoples view of organizations

Peoples view of society Patriots defend it

Reformers want to change it

Malcontents want to leave it



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Peoples view of nature

Some feel ruled by it Some feel in harmony with it

Some seek to master it

Peoples view of the universe

Renewed interest in spirituality


Responding to the Marketing


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Responding to the MarketingEnvironment

Uncontrollable

React andadapt toforces in the

environment

Proactive

Aggressiveactions toaffect forces

in theenvironment

Reactive

Watchingand reactingto forces in

theenvironment

Views on Responding


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