PRINCIPLES OF MARKETING

The Marketing Environment

Our Changing World

Changing attitudes to
Work Leisure Lifestyle

New gender and family roles Communication revolution Tougher market conditions

All the actors and forces influencing the companys ability to transact business effectively with its target market. Includes: Microenvironment - forces close to the company that affect its ability to serve its customers. Macro environment - larger societal forces that affect the whole microenvironment.

Marketing Environment

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The Marketing

Environment

Demographic
Company

Cultural

Economic
Suppliers
Customers

Company Competitors
Political

Natural
Intermediaries

Technological
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The Microenvironment
Company
Competitors Forces Affecting a
Companys Ability to Serve Customers

Suppliers

Customers

Intermediaries

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The Companys Microenvironment

Companys Internal Environmentfunctional areas such as top management, finance, and manufacturing, etc. Suppliers - provide the resources needed to produce goods and services. Marketing Intermediaries - help the company to promote, sell, and distribute its goods to final buyers.
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Suppliers

Marketing intermediaries

COMPANYS MARKETING PROGRAM

Marketing intermediaries

The market

The Companys micro environment

The Companys Microenvironment

Customers - five types of markets that purchase a companys goods and services.

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Customer Markets
International Markets Consumer Markets

Company
Government Markets Business Markets

Reseller Markets
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The Companys Microenvironment

-Competition

Companies face competition from three main sources:

Brandfrom manufacturers of similar products. Substitute productsdissimilar products satisfying the same needs. Indirectother firms trying to win customers purchasing power.

The Companys Microenvironment

Competition

Increasing pressures of international competition

competitors often enjoy the benefits of lower wages, better productivity or favourable exchange rates

Activity in world markets

firms opt to expand to overseas markets.

The Companys Microenvironment

Competition

A marketing program is influenced by four types of competitive structures.

Pure competition. Monopolistic Competition. Oligopoly. Monopoly.

Pure competition
A

The Companys Microenvironment

market structure where a large number of sellers sell an undifferentiated product. Pure competition is rarely, if ever, attained in the real world. It is a theoretical concept. An ideal. eg: some agricultural products (fruits, etc)

The Companys Microenvironment

Monopolistic Competition

Marketer

aims to get the buyer to perceive an attractive difference in their offerings. Marketers have more control over products and price due to perceived differences.

Marketers attempt to gain differential advantage over its competitors.

The Companys Microenvironment

Oligopoly
A

market structure in which only a few large sellers, marketing essentially similar products, account for almost all of an industrys sales.
eg air travel, cigarettes.

The Companys Microenvironment

Monopoly
A market structure where there is only one supplier of a product, for which there no close substitutes. eg: Train, electricity and gas suppliers (usually government owned). sometimes patent protection can provide firms with something close to a monopoly.

The Macro environment

Demographic
Cultural
Forces that Shape Opportunities and Pose Threats to a Company

Economic

Political Technological

Natural

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The Companys Macro environment

Demographic The statistical study of human population and its distribution. Eg age, gender, income, religion. Ageing populationBaby boomers (pre-1965)
Generation X(mid 1960s1970s) Single people Two-person household. Increasing cultural diversity

Economic - factors that affect consumer buying power and patterns. Natural - natural resources needed as inputs by marketers or that are affected by marketing activities.
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Key U.S. Demographic Trends

Changing Age Structure
Population is getting older

Changing Family Structure

Marrying later, fewer children, working women, and nonfamily households

Geographic Shifts
Moving to the Sunbelt and suburbs

Increased Education
Increased college attendance and white-collar workers

Growing Ethnic and Racial Diversity

73% Caucasian, 12% African-American, 10% Hispanic & 3.4% Asian
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Economic Environment

Economic Development

Key Economic Concerns for Marketers

Changes in Consumer Spending Patterns

Changes in Income

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Natural Environment

More Government Intervention

Higher Pollution Levels

Factors Affecting the Natural Environment

Shortages of Raw Material

Increased Costs of Energy

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The Companys Macro environment Technological - forces that create

new product and market opportunities.
Political - laws, agencies and groups that influence or limit marketing actions. Cultural - forces that affect a societys basic values, perceptions, preferences, and behaviors.

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Technological Environment
Rapid Pace of Change High R & D Budgets

Issues in the Technological Environment

Focus on Minor Improvements

Increased Regulation
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Political Environment

Increased Legislation

Key Trends in the Political Environment

Greater Concern for Ethics

Changing Enforcement

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Cultural Environment
Of Oneself Of the Universe Of Nature Views That Express Of Values Organizations Of Society Of Others

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Environmental Analysis
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PEST/PESTLE ANALYSIS

Environmental Analysis
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A swot analysis is a tool, used in management and strategy formulation. It can help to identify the strengths, weaknesses, opportunities and threats of a particular company.

SWOT ANALYSIS
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Strengths and weakness are internal factors that create value or destroy value. They can include assets, skills or resources that a company has at its disposal, compared to its competitors. They can be measured using internal assessments or external benchmarking.

Internal analysis (SWOT)

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Opportunities and threats are external factors that create or destroy value. A company cannot control them.

External factors (SWOT)

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SWOT ANALYSIS
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Conformation matrix
A tool to combine internal factors to external factors

Conformation matrix
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PERFORM A SWOT ANALYSIS ON YOURSELF AND SUBMITT IT IN NEXT CLASS

ASSIGNMENT
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SUKH CHAYN Leisure Club : perform swot analysis

Class activity
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Thank you
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