FUNDAMENTALS OF MARKETING

STORY OF GHANSHYAM
 THE ENVIRONMENT

ENVIRONMENT

INTERNAL EXTERNAL

MICRO MACRO
Industry Analysis
 It’s a market strategy tool
 Its is used by businesses to determine if they want to enter a product or service
market
 Its an analysis of various factors that affects the business
The Environment

ENVIRONMENT

INTERNAL EXTERNAL

MICRO MACRO
Environmental scanning
 An important step towards corporate planning and business policy decisions
 Corporate managers must analyse the
 Strengths (S)
 Weaknesses (W)
 Opportunities (O)
 Threats (T)
 The SWOT analysis precedes the making / taking of strategic and tactical
decisions by the management
INTERNAL ENVIRONMENT
 Organisational Resources
 Physical
 Financial
 Human
 Vision
 Mission
 Goal
 Objective
 Plan
 Policies and Procedure
VISION, MISSION AND OBJECTIVES
HIERARCHY OF GOALS

VISION

MISSION

GOALS

OBJECTIVES

PLANS
 VISION
• Vision can be defined as “a mental image of a possible and desirable future state
of the organisation” (Bennis and Nanus).
• It is “a vividly descriptive image of what a company wants to become in future”.

“What do we want to become?”

• A strategic vision describes the route a company intends to take in developing
and strengthening its business.
• It lays out the company’s strategic course in preparing for the future.

• “A mental image of a possible and desirable future state of the organization”

- Bennis and Nanus
• “A vividly descriptive image of what a company wants to become in future”
• “Represents top management aspiration”
EVERYTHING IS MADE TWICE
- Prof. Deepak R. Gupta
VISION
CHARACTERISTICS OF A GOOD VISION

 Clear and Concise

 Memorable
 Exciting and Inspiring
 Challenging
 Imaginable
 Desirable
 Feasible
 Achievable
 Unique
 Idealistic
 Communicable
 Possibility
 Articulation
ITS TOUGH !! BUT NOT IMPOSSIBLE
VISION - EXAMPLES
SIEMENS:
Where technology touches lives
DU PONT:
Better things for better living through Chemistry
HYUNDAI:
Building a better world through innovative technology
NOKIA:
Connecting people
XEROX:
The document company
IBM:
Solutions for a small planet
PHILIPS:
Let's make things better
BPL:
Believe in the best
EXAMPLES - VISION

 A car in every garage - FORD

 Empower people through great software anytime, anyplace and any device -
MICROSOFT

 Beat Xerox - CANNON

 Total Customer Satisfaction - MOTOROLA

 To be the happiest place on Earth - DISNEY LAND

VISION – EXAMPLES
Martin Luther King's
"I have a dream"
NASA's
"Man on the moon by the end of the decade”
British Airways
“putting people first"
JET AIRWAYS
“the joy of flying”
ITC
“Either we become world class or we leave business”
VISION HELPS IN FOCUSING

- Prof. Deepak R. Gupta

MISSION
 A formal commitment to stakeholders that the firm’s strategy incorporates and
recognizes their claims on the organization.
 “What is our business?”
 “A Mission statement is enduring statement of purpose”
 It is the purpose or reason for organization existence
 It includes firm’s philosophy and how it does business
 It includes how it treat its employees
 It communicates to internal and external customer where company stands and
where it is headed
 An articulation of key organizational goals.
CHARACTERISTICS OF A MISSION STATEMENT
 Identifies the boundaries of the current business and highlights
 Present products and services
 Types of customers served
 Geographic coverage
 Conveys
 Who we are,
 What we do, and
 Why we are here

A well-conceived mission statement distinguishes a company’s business makeup from that of other
profit-seeking enterprises in language specific enough to give the company its own identify!
PIDILITE
Our Vision
 To Be The Most Innovative Research and Technical
Competence Center for Sustaining “Innovation-Driven”
Growths for Pidilite Group of Companies globally.
Our Mission
 Invite, invest, and embrace talented people and scientists
for great challenges ahead
 Support, serve, and satisfy all valuable customers with our
innovative products and excellent technical competency
 Innovate with our customers to provide total product
satisfactions and business growths
FEATURES
 It facilitates translation of Objectives
 Not lengthy
 Clearly articulated
 Should arouse +ve feelings and emotions
 Reflect the firms strength
 Relevant
 Current i.e. for 10 years
 Challenging
 Basis for guidance
 Lay emphasis on Values, Beliefs and Philosophy
 MISSION - EXAMPLES

 To become a research based global company - RANBAXY PETROCHEMICALS

 To become a major player in the global chemicals business and simultaneously grow
in other growth industries like infrastructure - RELIANCE INDUSTRIES

 To stimulate, continue and accelerate efforts to develop and maximize the

contribution of the energy sector to the economy of the country - ONGC

 To attain leadership in the confectionery market and achieve a strong national

presence in the food drinks sector - CADBURY INDIA
 GOALS AND OBJECTIVES

GOALS OBJECTIVES
 Open ended statement  Close Ended
 No quantification  Quantified
 No time criteria  Specific
 General in nature  Measurable
 Inspiring  Attainable
 Motivating  Realistic
 Shows direction  Time Bound
 “Increased Profitability”  “Increase profits by 10% this year over last
year”
External Environment
MICRO ENVIRONMENT MACRO ENVIRONMENT
 Customers  Social
 Competitors  Political
 Suppliers  Economic
 Bankers  Cultural
 Creditors  Technological
 Shareholders  Legal
 Demographic
 MARKETING ENVIRONMENT

MICRO ENVIRONMENT MACRO ENVIRONMENT

 includes the actors and forces
outside marketing that affect
Marketing marketing management’s ability
Environment to build and maintain successful
relationships with customers.

Microenvironment Macroenvironment

consists of the actors close to the

company that affect its ability to serve Consist of broader forces that
its customers, the company, suppliers, affect the actors in the
marketing intermediaries, customer microenvironment
markets, competitors, and publics.
 THE MICROENVIRONMENT

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.
 THE COMPANY

In designing marketing
plans, marketing
management takes other
Before taking the company groups into
marketing decisions and account. Marketers must work in
adopting any strategy the Top management harmony with other
company first need to company departments to
analyze about its own Finance create customer value
capabilities that what it is R&D relationship.
capable of doing. Purchasing
Operations
Accounting
 THE SUPPLIERS

Marketers must watch

supply availability and cost.
Shortage in supply can cost
sales in the short run and
damage customer
satisfaction in the long term.

Right
Timely Quality Price
product
DELL SUPPLIERS
 MARKETING INTERMEDIARIES

Firms that help the company to promote, sell, and distribute its goods to final buyers.

RESELLERS: PHYSICAL DISTRIBUTION

FIRMS:
They are those who hold and sell They help the company to stock and
company’s product. move goods from their points of
• Wholesaler and retailer origin to their destinations.
• Transportation and warehousing.

MARKETING SERVICES FINANCIAL INTERMEDIARIES:

AGENCIES :
They help finance transactions and
They help the company target and
insure against risks.
promote its products.
• Advertising agencies. Media agency,
marketing research firms, etc. • Banks, credit companies,
insurance company, etc.
 COMPETITIORS
No single competitive
marketing strategy is best for
all companies. There are
Conducting winning strategies for large
competitor firms, small firms can develop
analysis is critical strategies that give them better
for success of the rates of return than large firms
firm enjoy.

Firms must gain strategic

advantage by positioning
their offerings strongly
against competitors’
offerings in the minds of
consumers.
 BMW AND AUDI

• After BMW’s ‘Checkmate‘, Audi bought an even bigger billboard where it said ‘Your pawn is no match for
our King‘ showing the Audi R8.
• Well now BMW took the battle to an even higher level (literally) and bought a small Zeppelin, where the
words ‘Game Over‘ were written..
 PUBLICS

Financial publics: This group Media publics: This group carries

influences the company’s ability to news, features, editorial opinions, Government publics. Management
obtain funds. Banks, investment and other content. It includes must take government
analysts, and stockholders are the television stations, newspapers, developments into account.
major financial publics. magazines, etc

Citizen-action publics. A
company’s marketing decisions General public. A company needs
Local publics. This group includes
may be questioned by consumer to be concerned about the general
neighborhood residents and
organizations, environmental public’s attitude toward its products
community organizations.
groups, minority groups, and and activities.
others.

Internal publics. This group

includes workers, managers,
volunteers, and the board of
directors.
 CUSTOMERS

GOVERNMENT
CONSUMER
BUSINESS MARKETS: RESELLER MARKETS:
MARKETS: INTERNATIONAL
buy goods and services MARKETS: Agencies that buy goods
individuals and MARKETS:
for further processing or buy goods and services in and services in order to
households that buy buyers of all types in
for use in their production order to resell them at a produce public services
goods and services for foreign countries
process profit or transfer them to those
personal consumption
that need them.
 THE MACROENVIRONMENT

Macro environment consists of the larger societal forces that affect

the microenvironment—demographic, economic, natural,
technological, political, and cultural forces.
 THE DEMOGRAPHIC ENVIRONMENT

• Demography : is the study of human populations in terms of size, density, location, age, gender,
race, occupation, and other statistics.
• Studying the demographic environment is important because it involves people, and people make
up markets.
• The most important demographic trends in the countries in the Indian Continent include:
1. Increasing Population
2. A growing middle Class
3. Population in Rural India
4. Generational Marketing
5. The Changing Family System.
6. The Changing Role of Women
7. A Better educated, More White Collar, More Professional Population
8. Increasing Diversity
 A Growing Middle Class
•MGI has divided Indian population into 5 economic
Increasing Population classes based on real annual disposable income.

•Deprived: <90000rs-unskilled, semiskilled daily

wage workers.
•Aspirers: 90000-199000rs -small retailers, small
farmers, low skilled industrial workers.
•Seekers: 200000-499000rs- white collar employees,
mid level government officials, newly employed post
graduate students, medium scale traders and
Main characteristics of Asian population is the rapid bus.people.
growth of urban population.
• Strivers: 500000-9999999rs – established
professionals, industrialist, rich farmers.
Urban population will supposedly rise from 29% •Global Indian: >1000000rs- senior executive, bus
today to 37% in 2025 i.e from 3.18 mn to 523mn by owners, top most professionals, politicians, film
2025. actors.
•Middle Class = Seekers + Strivers- 200000-100000/-
 The Changing Family system.

• Modern India has abandoned the concept of Joint Family

and shifted to Nuclear Family.
• This Dual Income Single Kid (DISK) family has created a
dent in social fabric of our society.
• Both parents work- family income increases- increased
consumption and demand – increased real estate market.
• Young couples have freedom and are no more subjected to a
close supervision of the elders in the family.
• Husband and wife both have become career oriented
making marriages more fragile , As a result urban nuclear
family is splitting.
• Growing number of nuclear families has led to growing
number of retired homes.
 Generational Marketing

• Some experts warn that marketers need to be careful about turning off one
generation each time they craft a product or message that appeals effectively to
another.
• Others caution that each generation spans decades of time and many
socioeconomic levels.
• Defining people by their birth dates will be less effective than segmenting them
by their lifestyle, life stage or common values they seek in the products they buy.
CATCHY TITLES
TITLES CAN CREATE CONVERSION
DO A/B TESTING

• Facebook ad targeting is unrivaled in its versatility.

You can target your ads based on user location,
age, gender, interest, relationship status,
education and more.
• Facebook ad targeting is unrivaled in its versatility. You can target your ads
based on user location, age, gender, interest, relationship status,
education and more.
 Population in Rural India

* Demand is expected to grow at an annual

compound rate of 5.1% during next 15 years.
* By 2025- Rural consumption will nearly
triple.
* Main constraints: purchasing power, lack of
proper infrastructure, reliable supply of
electricity.
* Government of India is trying to bridge the
gap between rural market and urban by
building infrastructure
 Changing role of Women.

• About 3 decades ago, primary role of women in the sub

continent was to look after the house.
• More and more girls, even in rural India are completing
graduation and even post-graduation
• Women are far more ambitious and want to make use of
knowledge by working in the corporate world.
• Gender discrimination is a thing of past. Women earn the
same salaries even more than their men colleague
leading to the increased disposable income of the family.
• Many products are now made specially for them.
• They are an active member of the family and have an
equal say in the decision making process.
 A Better-Educated, More White Collar, More Professional Population

• Provision of education has increased from 888rs in

2004-05 to 2985rs in 2011-12.
• Various Government policy promote education, New
elementary schools into action as a result enrollment has
increased at CAGR of 10.8% in various degree courses.
• As per FICCI, 25.9 mn students have enrolled in more
than 45000 degree and diploma institute in India.
• Student Enrollment has increased at 10.8% CAGR and
number of institutes has increased at 9% CAGR.
• Indian population more educated-increased demand for
quality products.
 Increasing Diversity

• Countries vary in ethnic and racial make up .

• At the other extreme is the United States, with people from virtually
all national origins. The United States has often been called a
melting pot, where diverse groups from many nations and cultures
have melted into a single, more homogenous whole. Instead, the
United States seems to have become more of a “salad Serving
diverse customer communities:
• India- “Land of Diversity” with many religion, languages, dialects,
cultures and lifestyles.
• Preferences and perceptions of various brands would change
depending on the region. It is, therefore said that marketer finds
many markets in India
• Different cultural patterns & social rituals offer an opportunity to
marketers to market their brand during the festivals. Each festival
be it Eid or Diwali, Baisakhi or Onam or Durga Puja an
opportunity to promote the sale of their brands.
 INCREASING DIVERSITY: KUMBH MELA

• Lifebuoy
• Lifebuoy has tied up with more than 100
local dhabas and restaurants. For every
order, the first chapatti served carries the
branded message and makes an instant
connection. It has also placed the soap in
the wash rooms of all these eateries. It
delivers a message through chapatti and
creates awareness as well as strong
positioning in consumers mind.
 INCREASING DIVERSITY: KUMBH MELA

• Tata swach
• Tata Swach has stationed 300
water purifiers spread over 28
booths. The brand estimates that
over one million litres of water will
be consumed by the pilgrims at the
mela.
 Increasing Diversity
• Additionally LGBT(6-7% of US population) have buying
power of me than $884bn.
• Brands in a wide range of industries are now targeting
the LGBT community with gay-specific ads and
marketing efforts—from Amazon, adidas, Allstate, and
Apple to Kaiser Permanente, Wells Fargo, Macy’s, and
Best Buy.
• Another segment – 2.68cr Indians with disability ranging
in the age group of 20-59 have some special needs.
• Many marketers now recognize that the worlds of people
with disabilities and those without disabilities are one in
the same. Marketers such as McDonald’s, Verizon
Wireless, Nike, Samsung, Nordstrom, Toyota, and Apple
have featured people with disabilities in their mainstream
marketing.
 THE ECONOMIC ENVIRONMENT

• Economic environment consist of economic factors that affect both consumer purchasing power
and spending patterns.
• Value Marketing- Watchword for marketers. Trying to offer financially frugal buyers greater value –
just right combination of product quality and good service at a fair point.
• Marketers must focus on the income distribution and income levels.
• Distribution of income has created a tier market.
1. Mercedes- Affluent
2. TATA- Modest
3. Maruti-Suzuki- Less Affluent.
• Major Economic variables- Income, Cost of living, interest rates, savings and borrowing patterns have
large impact on market place. Companies watch these variables using economic forecasting.
THE ECONOMIC ENVIRONMENT
 Example

Consumers Flock
Big Bazaar
to the outlets of
supermarket offers
Big bazaar and
all its merchandise
form a queue
at discounted
outside before the
prices.
store opens.

It adopts a policy of
‘ Everyday low
price’ and offers
additional discount
on special days like
Independence day,
Republic Day.
 : ANALYZING MARKETING ENVIRONMENT

Objectives
2-3 Identify the major trends in the firm’s natural and technological
environments.
 THE NATURAL ENVIRONMENT

•Natural environment involves the physical

environment and natural resources that are needed
as inputs by marketers or that are affected by the
marketing activities.

•Unexpected happenings in the physical

environment anything from weather or natural
disaster can affect companies and their marketing
strategies.

•Ex: the deluge in Chennai and Mumbai: both cities

were flooded by incessant rains- sales suffered from
florist to automobile dealers to restaurants to airlines
etc but boosted the sales of products like packaged
drinking water, mosquito repellent and auto repair
centers.
• Marketers must be aware of several trends in the natural
environment:
THE NATURAL
ENVIRONMENT
❑ Shortage of Raw material: Air, Water, Non renewable
resources like oil, coal etc. By 2030, 1 in 3 people will not
have enough water to drink.
❑ Increased pollution: disposal of chemical and nuclear wastes;
dangerous mercury levels in ocean; quantity of chemical
pollutants in food and soil.
❑ Increased Government intervention: Vary in concerns and
efforts to maintain clean environment mainly based on funds
and political will. German Govt. vigorously pursue
environmental quality. Whereas, Poorer nations do little about
pollution.
• Many companies are responding to consumer demands with more
environmentally responsible products. Others are developing
reusable and recyclable materials and components.
• In India Central Pollution Control Board (CPCB) has been created
to address the environmental concerns and challenges relating to
the paradigm shift in strategies for pollution abatement and control.
❑ Rolling out new high efficiency stores- stores use wind turbines, high output linear Walmart:
fluorescent lighting to reduce what energy stores do use and native landscaping to “Eco-Nanny”
cut down on watering and fertilizers.
❑ Store heating systems burn recovered cooking oil from deli fryers and motor oil
from Tire and Lube Express centers.
❑ All organic waste is hauled off to a company that turns it into a mulch for garden.
❑ Walmart is committed to using 100% renewable energy in all of its stores and
distribution centers and sending 0% waste to landfills.
❑ Walmart has laid down eco land to its vast network of suppliers to get them do the
same.
❑ It has developed Walmart Sustainability Index Programme which help suppliers
understand , monitor and enhance the sustainability of their products and the supply
chain.
❑ As a result , Walmart suppliers have cut energy, water, materials, toxic ingredients ,
and other inputs while creating less waste and fewer emissions.
❑ Legislative agencies can only level nominal fines but walmart can threaten a
substantial chunk of a suppliers business.
PATAGONIA’S “CONSCIOUS CONSUMPTION”-
Telling consumers to buy less
❑ Started with a full page NewYork Ties ad on Black Friday,
Patagonia’s best selling R2 Jacket pronouncing “Don’t buy
this Jacket”. The ad was backed up with messaging in its PATAGONIA’S “CONSCIOUS
retail stores , websites and social media pages, in addition CONSUMPTION”-
to follow up email to the customers. Telling consumers to buy less
❑ “Because Patagonia wants to be in business for a long time
and leave a world inhospitable for our kids, we want to the
opposite of every other business today. We ask you to buy
less and to reflect before you spend a dime on this jacket or
anything else.
❑ The environmental cost of R2 jacket included:
1. 135L of water
2. Used 60% recycled polyester, generating 20 pounds of
carbon dioxide.
3. Waste production is two third of each jacket’s weight.
❑ Hence Jacket came at an environmental cost higher than its
price.
PATAGONIA’S “CONSCIOUS CONSUMPTION”-
Telling consumers to buy less

Reduce: WE make useful gear that lasts a long time.

YOU don’t buy what you don’t need.
Repair: WE help you repair your Patagonia gear.
YOU pledge to fix what’s broken.
Reuse: WE help find a home for Patagonia gear you
no longer need. YOU sell or pass it on.
Recycle: WE take back your Patagonia gear that is
worn out. YOU pledge to keep your stuff out of the
landfill and incinerator.
Reimagine: TOGETHER we reimagine a world
where we take only what nature can replace.
 THE
TECHNOLOGICAL
ENVIRONMENT
 THE
❑ Technological advances are perhaps the most dramatic force TECHNOLOGICAL
affecting today’s marketing strategies..
ENVIRONMENT
❑ Technology has revealed wonders as well as horrors .
❑ New technology can offer exciting opportunities for marketers.
❑ The use of Radio Frequency Identification (RFID), GPS,
Bluetooth etc is already widespread these days.
❑ Many firms are already using RFID to track its products and
customers at various points in distribution channel.
❑ Eg: Walmart encouraging their suppliers and retailers to attach
RFID system in pallets and stores respectively.
❑ Thus every new technology replaces an older technology.
❑ Companies that do not keep up with the new technological
products, will soon be put of the league by loosing the market and
the opportunities.
❑ Government investigates and puts a ban on potentially harmful
products . FDA, Consumer Product Act are few of the regulations
that marketers must adhere to before launching a new product in
the market.
 EXAMPLE

❑ Disney is taking RFID technology to the

whole new level:
❑ After registering a cloud based My
Magic+ Service with the flick of your
wrist , enter the park, buy dinner or
souvenirs or unlock your hotel room.
❑ If you get lost in the park, a quick scan
of your Magic Band at a nearby
directory could pi point the location of
your entire party.
❑ Magic band could trigger in depth
information about park features, ride
wait times, Fast Pass Check in alerts
and your reservation schedule.
 : ANALYZING MARKETING ENVIRONMENT

Objectives
2-4 Explain the key changes in the political and cultural environments.
 THE POLITICAL AND SOCIAL ENVIRONMENT
consist of laws, government agencies, and pressure groups that influence and limit various organizations and individuals
in a given society.

LEGISLATION REGULATING BUSINESS

Government develop PUBLIC POLICY to guide commerce – sets of laws and regulations that limit
business for good of society as a whole. Business Legislation is enacted for mainly 3 reasons.:

Protect the interest of the

society: Regulation arises to
ensure that firms take
Protect Companies from each responsibility for the social
other: To define and prevent costs of their production or
unfair competition. products.
Protect Consumers: From
unfair business practices like
shoddy products, invading
consumer’s privacy, deceive
consumer from packaging
and pricing etc.
INCREASED EMPHASIS ON ETHICS AND SOCIALLY RESPONSIBLE
ACTORS

Consumer online
Online Privacy Issues
tracking
• Explosion of amount of
personal digital data • Businesses track
Do the right thing consumers online
available. Voluntarily
• Marketing involves placed many times like buying behavior and
ethics and social on FB, Linked in Etc. collect, analyze and
responsibility but due share digital data from
to conflicting interests • Information is every move consumers
code of ethics is systematically make on their online
formulated. developed by sites.
businesses to learn
more about their • Most companies fully
customers. disclose their internet
privacy policies.
 CAUSE RELATED MARKETING

Companies linking themselves to worthwhile cause

Some controversies that stirred up- cause related

marketing is more a strategy for selling than giving-
cause exploitative marketing.
Companies find themselves walking on a thin line
of increased sales and improved image and facing
charges of exploitation.
If handled well, effective marketing tool.
EXAMPLES

Indian Oil Corporation Ltd. (IOCL) Offers

scholarship to young players between 14-19 to
encourage talent and create a pool of sports
person and from whom the corporation will
select employees.

Value Led Business-

• Warby Parker- Company sells eyewear with a
purpose- for every pair of glasses it distributes free
pair to someone in need.
• Company works with non profit organization and
train low income entrepreneurs to sell affordable
glasses.
• Everybody has right to see.
 THE CULTURAL ENVIRONMENT
Consist of institutions and other forces hat affect a society’s basic values, perceptions, preferences
and behavior.

THE PERSISTENCE OF CULTURAL VALUES

These beliefs shape more specific attitudes and

behavior in everyday life.
Core values
Passed on by parents to children and reinforced by
schools , business, religious institutes, etc.
Cultural values

These are more open to change. Believing in

Secondary
marriage is a core belief but believing that people
Beliefs
should get married is a secondary belief.
BRIDE DRESS: INDIA AND EUROPE
FUNERAL CLOTHES
 THE CULTURAL ENVIRONMENT

SHIFT IN SECONDARY CULTURAL VALUES.

People’s view of themselves

•Some people seek personal pleasure while others seek self
realization.
•People use brands, products and services as a means of self
expression that math their views and themselves.

People’s view of Others

•Digital technology launched an era of “mass mingling” or
have made people together as “alone together”
•This increasing trend of tapping into the digital networks ,
brands needs to participate in these networks
SHIFT IN SECONDARY CULTURAL VALUES.

People’s view of Society

*Patriots wants to defend it, Reformers want to change it
while malcontents wants to leave it.
*Some brands ae highly associated with patriotism : Jeep,
Coca Cola, Disney, Apple, etc.

People’s view of Organization

•There has been overall decrease in loyalty at work.
•Many people see work not as a source of satisfaction but as a
required chore to earn money to enjoy their non work hours.
•Organization needs to find new ways to gain consumer and
employee loyalty.
 NIKE AIR

• Nike offended Muslims in June, 1997 when the "flaming

air" logo for its Nike Air sneakers looked too similar to
the Arabic form of God's name, "Allah".
• Nike pulled more than 80,000 pairs of sneakers from the
market.
SHIFT IN SECONDARY CULTURAL VALUES.

People’s view of Nature

*People have recently recognized that nature is finite and fragile, it
can be either destroyed or spoiled by human activities.
*This renewed love can create sizeable market of consumers who
seek out every thing from natural organic and nutritional products
Eg. Food products

People’s view of Universe

*People have been moving away from materialism and dog-eat-dog
ambition to seek more permanent values- family, community earth,
space etc.
*Rather than calling it as religion they call it as spirituality.
*This changing spiritualism affects consumers in everything from TV
shows they watch, books they read to the products they buy and
consume
Culture !! Its Different

• Teaches members how to pursue the

world by giving meaning and
definition to things
• A grasshopper is a pest in the USA,
• A pet in China,
• An apetizer in thailand
PEST ANALYSIS

POLITICAL
ECONOMIC

SOCIO - CULTURAL

TECHNOLOGICAL
Political
 Ecological/Environmental issues
 Current legislation home market
 Future legislation
 Government policies, Term and change
 Trading policies
 Funding, grants and initiatives
Economical
 Home economy situation
 Home economy trends
 Taxation specific to product/services
 Seasonality/weather issues
 Market and trade cycles
 Specific industry factors
 Market routes and distribution trends
Social
 Social environment has maximum direct effect on
consumers. Social forces shape consumption habit of
people.
 Lifestyle trends
 Consumer attitudes and opinions
 Media views
 Brand, company, technology image
 Consumer buying patterns
 Fashion and role models
 Major events and influences
 Buying access and trends
 Ethnic/religious factors
CULTURAL
 Cultural factors influence consumer's beliefs, values and norms.
 Culture is the complex whole that includes knowledge, belief, art, morals, laws, custom
and any other capabilities and habits acquired by a consumer as a member of the
society.
 Its a distinct way of life of a group of people and their complete design of living.
 People are using products and services, which are mostly western.
 These are reflected in our food habits, dressing patterns, choice of fashion garments
and also in the way of living.
 The degree of permissibility has increased substantially after the opening up of
economy and the younger generations are found to be more westernized than the
older generations.
 Growth of multiplexes, large shopping malls, beauty parlors, discos and use of western
outfits are examples of how cultural factors can influence the marketing decisions of a
firm.
 Technological
 Competing technology development
 Research funding
 Associated/ dependent technologies
 Replacement technology/solutions
 Maturity of technology
 Manufacturing maturity and capacity
 Information and communications
 Consumer buying mechanisms/ technology
 Technology access, licensing, patents
Same Analysis but with different Names
 Scanning the Business Environment – Francis J. Aguilar
 ETPS
 Strategic Trend Evaluation Process – Arnold Brown
 STEP Analysis
 Macro External Environmental Analysis
 STEPE – Ecological
 PESTLE – Legal and Ecological
 PEST – G (Green)
 PEST – E (Environment)
Advantages India offers to Foreign Investors

 Political stability in a democratic polity

 A credible judicial system;
 A steadily growing economy – India has had a slow but steady growth during the past five
decades;
 A single-digit inflation rate;
 A vast expanding market
 A vibrant financial system – a network of banking and financial in situations;
 A number of active stock exchanges
 A number of active stock exchanges
 A credible institutional framework
 A diverse industrial base
 A large and growing pool of trained manpower
 A large English speaking population. By many, English is regarded as the official language of
global business
 A country with geographic and logistic advantages
RESPONDING TO MARKETING ENVIRONMENT

• Consider environment • These firms develop strategies to

to be an uncontrollable change the environment.
element and choose to • Companies and their products often
react and adapt. They create and shape new industries
Uncon and their structures, products such
do not try to change it , Proactive as Ford’s Model T car, Apple’s iPad
passively accept it. trollab and iPhone , Google’s search
• They analyze le engine, Patanjali, etc.
environment and create • Rather than simply watching and
strategies that would reacting to environmental events ,
avoid threats and take Reactive firms take aggressive actions to
advantage of the affect the publics and forces in
opportunities the their marketing environment .
environment provides. • Companies hire lobbyist to
Watching and influence legislation affecting their
reacting to industries and stage media events
forces in the to gain coverage
environment. • Eg: Mc Donalds’s Pink Goop,
Cadbury.
 RESPONDING TO MARKETING ENVIRONMENT
SAINSBURY’S TAKES ADVICE FROM A 3-YEAR OLD

• Lily Robinson (who insists that she is three and a half years old) was quite
confused by one of Sainsbury’s products called tiger bread. In her eyes, the bread
didn’t resemble a tiger at all, and in fact looked very much like a giraffe.
TRANSCRIPT OF A LETTER
ONLINE CAMPAIGN
SAINSBURY’S TAKES ADVICE FROM A 3-YEAR OLD
IN THE SOCIAL MEDIA AGE : WHEN THE DIALOGUE
GETS NASTY
• Upon receiving a severely damaged computer
monitor via FedEx, YouTube user goobie55
posts footage from his security camera.
• The video clearly shows a FedEx delivery man
hoisting the monitor package over his head and
tossing it over goobie55’s front gate, without
ever attempting to ring the bell, open the gate, or
walk the package to the door.
• The video—with FedEx’s familiar purple and
orange logo prominently displayed on everything
from the driver’s shirt to the package and the
truck—goes viral, with 5 million hits in just five
days. TV news and talk shows go crazy
discussing the clip.
IN THE SOCIAL MEDIA AGE : WHEN THE DIALOGUE
GETS NASTY

• FedEx drew praise by immediately

posting its own YouTube video
addressing the monitor-smashing
incident. In the video, FedEx Senior Vice
President of Operations Matthew
Thornton stated that he had personally
met with the aggrieved customer, who
had accepted the company’s apology.
“This goes directly against all FedEx
values,” declared Thornton. The FedEx
video struck a responsive chord.
Numerous journalists and bloggers
responded with stories about FedEx’s
outstanding package handling and
delivering record.
IN THE SOCIAL MEDIA AGE : WHEN THE DIALOGUE
GETS NASTY
• A young creative team at Ford’s ad agency in India produces a Ford Figo print ad and releases it to
the Internet without approval.
• The ad features three women—bound, gagged, and scantily clad—in the hatch of a Figo, with a
caricature of a grinning Silvio Berlusconi (Italy’s sex-scandal-plagued ex prime minister) at the
wheel.
• The ad’s tagline: “Leave your worries behind with Figo’s extra-large boot (trunk).” Ford quickly pulls
the ad, but not before it goes viral. Within days, millions of people around the world have viewed the
ad, causing an online uproar and giving Ford a global black eye.

In response to its Figo ad fiasco, Ford’s chief

marketing officer issued a deep public
apology, citing that Ford had not approved
the ads and that it had since modified its ad
review process. Ford’s ad agency promptly
fired the guilty creatives.
 IN THE SOCIAL MEDIA AGE : WHEN THE DIALOGUE GETS NASTY

• When 8-year-old Harry Winsor sends a crayon drawing of

an airplane he’s designed to Boeing with a suggestion
that the company might want to manufacture it, the
company responds with a stern, legal-form letter. “We do
not accept unsolicited ideas,” the letter states. “We regret
to inform you that we have disposed of your message and
retain no copies.”
• The embarrassing blunder would probably go unnoticed
were it not for the fact that Harry’s father—John Winsor,
a prominent ad exec—blogs and tweets about the
incident, making it instant national news.

• Boeing quickly took responsibility for mishandling aspiring Harry Winsor’s designs,
turning a potential PR disaster into a positive. It called and invited young Harry to visit
Boeing’s facilities.
• On its corporate Twitter site, it confessed “We’re experts at airplanes but novices in social
media. We’re learning as we go.”