Presentation on Marketing

Environment

Presented To: Prof. Vipul Patel

Presented by:
Minkal Patel(29)
Devang Patel(22)
Viral Patel(40)
Pratik Patel(31)
CMS
GANPAT UNIVERSITY
 Marketing Environment

 DEFINITION: “The external world in which the

organization and its potential customers have to
exist, and within the context of which marketing
decisions have to be made.”
 “All the actors and forces influencing the
company’s ability to transact business effectively
with its target market.”
Marketing Environment
 Micro environment

Definition
“The forces close to the organization that affect its ability
to serve its customer—the organization, market channel
firms, customer markets, competitors and publics”
 Company’s internal environment
(Company’s other departments)
 It depends on men ,money ,material and machinery.
 Company’s major departments:
• Finance department
• Research & Development,
• Purchasing,
• Manufacturing,
• Accounting and Others.
 Suppliers

 Suppliers are very important link between the company

and customers .
 Suppliers are firms and individuals that provide the
resources needed by the company and its competitors to
produce goods and services.
 They have their own bargaining power in the industry.
 Marketing Intermediaries

 It consists of the sources that are involved in

promoting, selling and distributing its goods to
the final buyers.
 Marketing Intermediaries
Marketing
Intermediaries

Physical Marketing Financial

Middlemen
Distribution Service Intermediaries
Agencies

Agent Merchant
middlemen Middlemen
 Customers

 Only by studying, demand and customer-related factors

firm can carry out their business/ marketing planning
effectively
 The company must study its customer markets closely
since each market has its own special characteristics.
 These markets normally include:
1) Consumer markets
2) Business markets
3) Reseller markets
4) Government markets
5) International markets
 Competitors

 One of the main threat for the company.

 Being good is not good enough if a competitor is better.
 Three levels of competition exist.
1 . Direct competitors
2. Competition exists between products
3. Competition exists among all organizations
 Publics
 These are various groups of individuals who have actual or
potential interest in the working of the organization and
somehow affect its working.
 A company should prepare a marketing plan for all of their
major publics as well as their customer markets.
 Generally, publics can be identified as being:
1) Financial publics
2) Media publics
3) Government publics
4) Citizen-action publics
5) Local publics
6) General publics
Macro Environment
 Demographical Environment
 Refers to the changing nature of the population
 What are the some current demographic trends?
 What are the implications of these changes?
 Demographical Factors
 Education Level
 Age distribution
 Sex ratio
 Income Level and its distribution
 Ethnic Origin
 Religious affiliation
 Family size and lifecycle
Which is your product and which is your
Market???????? CHOICE IS YOURS
 Different age groups buy different products or
services.
– Under age 25: Grow by 4.8%.
– 25-34 years old: Decline by 5%.
– 35-44 years old: Increase by 4.5%.
– 45-64 years old: Grow by 2.5 million, or 39.5%.
– Over age 65: Grow by 20%.
Cont….
 Economic Environment
 The two principal ways in which the economic
environment affects your business are:

1. Its overall condition affects the growth of your

markets.
2. The financial conditions in the economy affect
your ability to raise finances to fuel Your
projects and growth plans.
 Economic Factors
 The stage of the business lifecycle
prosperity, recession and recovery
 Unemployment rate
 Income and its distribution
 GDP
 Technological Environment
 One of the most dramatic forces shaping people
live is technology.
 The technological environment refers to new
technologies, which create new product and
market opportunities.
 Technological developments are the most
uncontrollable force faced by marketers.
 Organizations need to be aware of new
technologies in order to turn these advances into
opportunities and a competitive edge.
 Technological Environment
 Technology has a tremendous effect on life-styles,
consumption patterns, and the economy.
 Advances in technology can start new industries,
radically alter or destroy existing industries, and
stimulate entirely separate markets.
 Technology is a major macro-environmental
variable which has influenced the development of
many of the products we take for granted today,
for example, television, calculators, video
recorders and desk-top computers.
Every new technology is a force
for “creative destruction.”
 Cont…
 One example of how technological change has affected
marketing activities is in the development of electronic
point of sale (EPOS) data capture at the retail level.

 The ‘laser checkout’ reads a bar code on the product being

purchased and stores information that is used to analyse
sales and re-order stock, as well as giving customers a
printed readout of what they have purchased and the price
charged.
 Increased
Increased Focus
Focuson
onMinor
Minor
Regulation
Regulation Improvements
Improvements
Issues
Issues in
in the
the Technological
Technological
Environment
Environment
Varying
Varying R
R&&D
D Rapid Pace of
Budgets
Budgets Change
trends in technology.
Marketers should monitor the following four
 Social-cultural Environment

 It is the most difficult element of the macro-environment

to evaluate because of changing tastes, purchasing
behaviour and changing priorities of different cultural
groups of society.
 The type of goods and services demanded by consumers is
a function of their social conditioning and their consequent
attitudes and beliefs.
 Marketing firms have to respond to changes in attitude of
consumers towards products.
 Social-cultural Environment

Can Social attitude can be a threat……………???

 The decline in the popularity of smoking is a classic
example of how changes in social attitudes have posed a
significant threat to an industry, forcing tobacco
manufacturers to diversify out of tobacco products and into
new areas of growth.
E.g. ITC
 People have started questioning about safety and
desirability of using artificial colours ,preservatives and
other exipients in food products against industry.
 Social-cultural Environment

 Changes in social/cultural environment affect customer

behavior, which affects sales of products.

 It is important for marketers to understand and appreciate

the cultural values of the environment in which they
operate.

 The cultural environment is made up of forces that affect

society's basic values, perceptions, preferences, and
behaviors.
 Social-cultural Environment

 Regional differences in language, customs, social systems,

values, habits, religions, and caste systems make the
social-cultural environment of India.
 There are some elements of the culture that are common to
all, but many elements that shape the consumption
behavior of people vary in nature.
 Dress codes, for example, vary from region to region.
 Social-cultural Environment
 Significant variation in food habits is another
aspect that reflects the diversity of India.

 So, understanding the diversity is critical to

marketing success.
 Natural Environment

 The deterioration of the natural environment is a major

global problem.
 Corporate environmentalism is the recognition of the
importance of environmental issues facing the firm and the
integration of those issues into the firm’s strategic plans.
 Marketers practicing corporate environmentalism need to
be aware of the threats and opportunities associated with
four major trends in the natural environment
 Continue…..

1) Shortage of raw materials

2) Increased cost of energy
3) Increased pollution level
4) Changing role of governments
 Political-Legal Environment

 The political and legal environment consists of laws

government agencies, and pressure groups that influence
and limit various organizations and individuals.
 Two major trends in the political-legal environment are
the increase in business legislation and the growth of
special-interest groups.
 INCREASE IN BUSINESS
LEGISLATION

 Business legislation has four main purpose:

1. to protect companies from unfair competition
2. to protect consumers from unfair business practices
3. to protect the interest of society from unbridled business
behavior
4. to charge business with the social cost created by their
products or production processes.
GROWTH OF SPECIAL-INTEREST
GROUPS
 An important force affecting business is the consumerist
movement- an organized movement by the citizens and the
government to strengthen the rights and powers of buyers
in relation to sellers.
 In order to protect the interests of consumers, the
government of India passed legislation under the consumer
protection Act, 1986.
 Under this Act, the following six rights of the consumers
are recognized.
 Continue….

1) Safety
2) Information
3) Choice
4) Representation
5) Consumer’s education
6) Redressal