INTRODUCTION TO MARKETING

SOCIAL DEFINITION

A societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others.

MANAGEMENT DEFINITION

It is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals.

MARKETING ENVIRONMENT

The market environment is a marketing term and refers to all of the forces outside of marketing that affect marketing management’s ability to build and maintain successful relationships with target customers. The market environment consists of both the macro environment and the microenvironment.

MICRO ENVIRONMENT

The microenvironment refers to the forces that are close to the company and affect its ability to serve its customers.

The company aspect of microenvironment refers to the internal environment of the company. This includes all departments, such as management, finance, research and development, purchasing, operations and accounting. Each of these departments has an impact on marketing decisions.

MACRO ENVIRONMENT

The macroenvironment refers to all forces that are part of the larger society and affect the microenvironment.

It includes concepts such as demography, economy, natural forces, technology, politics, and culture.

FIVE STAGES OF MARKETING ENVIRONMENT ANALYSIS

Audit of environmental influences

Assessment of the nature of the environment

Identification of the key environmental forces

Identification of the principal opportunities and threats

Strategic position

NATURE OF MARKETING ENVIRONMENT

The marketing environment has been defined in a variety of ways. According to Philip kotler, the company’s marketing environment is made up of the sectors and forces outside the firm’s marketing function which infringe upon the ability of marketing management to develop and maintain a successful relationship with the firm’s target audience . Within the environment there are two distinct components: the micro and macro environment .

This is explain in the adjoining diagram:

Economic factors

Technological Factors

Political

Factors

Legal Factors

Demographic Factors

Cultural Factors

Social Factor

sDistribut

or

Consumer

Supplier

Competitors

Marketer

Market environment consist of all factors that in one way or another affect or affected by the organization decision

FACTORS EFFECTING MARKETING ENVIRONMENT ARE :

Internal Environment (Micro Environment)

External Environment (Macro Environment)

INTERNAL ENVIRONMENT

The microenvironment refers to the forces that are close to the company and affect its ability to serve its customers. It includes the company itself, its suppliers, marketing intermediaries, customer markets, competitors, and publics.

COMPONENTS OF INTERNAL ENVIRONMENT:

The Company Suppliers Marketing Intermediaries Customers Competitors Public

FACTORS AFFECTING INTERNAL ENVIRONMENT

It Includes 5 (M’s) Management Manpower Machine Material Money

EXTERNAL ENVIRONMENT

The macro environment refers to all forces that are part of the larger society and affect the microenvironment. It includes concepts such as demography, economy, natural forces, technology, politics, and culture.

COMPONENTS OF EXTERNAL ENVIRONMENT:

• Technology Environment• Socio-Cultural Environment• Economic Environment• Political Environment• Natural Environment• Demographic Environment• Legal Environment• Government Policies

FACTORS AFFECTING EXTERNAL ENVIRONMENT

External Factors affect the organization indirectly

Political Environment Social-Culture Ecological Legal

THE MARKETING ENVIRONMENT AND COMPETITOR ANALYSIS

SWOT analysis PEST analysis

SWOT ANALYSIS

Strengths (internal) Weaknesses (internal) Opportunities (external) Threats (external)

THE PURPOSE OF SWOT ANALYSIS

It is an easy-to-use tool for developing an overview of a company’s strategic situation It forms a basis for matching your

company’s strategy to its situation

STRATEGY FORMULATION

SWOT SWOT Analysis

Identifies Organization’s Strengths, Weaknesses, Opportunities, and Threats

Core Competency A special strength that gives an organization a competitive

advantage

PEST ANALYSIS

Political factors Economic factors Socio-cultural factors Technological factors

POLITICAL/LEGAL

Monopolies legislation Environmental protection laws Taxation policy Employment laws Government policy Legislation Others?

ECONOMIC FACTORS

Inflation Employment Disposable income Business cycles Energy availability and cost Others?

SOCIOCULTURAL FACTORS

Demographics Distribution of income Social mobility Lifestyle changes Consumerism Levels of education Others?

TECHNOLOGICAL

New discoveries and innovations

Speed of technology transfer Rates of obsolescence Internet Information technology Others?

CONCLUSION