MARKETING ENVIRONMENT

Actors close to the company that affect its ability to serve its customers.

MARKETING ENVIRONMENT

Demographic
Cultural
Publics
Company

Economic
Suppliers

Company

Political

Competitors
Intermediaries

Customers

Natural

Technological

Aspects of Marketing Environment:

Micro Environment
-Considered to be in the control of the organization.

Macro Environment
-Considered to be beyond the control of the organization.

Micro Environment
Company Publics Suppliers

Forces Affecting a Companys Ability to Serve Customers

Competitors
Customers

Intermediaries

Micro Environment
Customers Types of Consumer Markets Consumer preferences keep fluctuating Consumer Loyalty also keeps changing Competitors those who serve a target market with similar products and services. Need for building competitive advantage Publics - any group that perceives itself having an interest in a companys ability to achieve its objectives.

Micro Environment
Companys Internal Environment- functional areas such as top management, finance, and manufacturing, etc. Suppliers provide the resources needed to produce goods and services. Influence the cost of raw materials-impacting profits Integrating Vs. Outsourcing the supplies Can become direct competitor

Marketing Intermediaries - help the company to promote, sell, and distribute its goods to final buyers.

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

Economic

Political

Natural

Technological

Macro Environment
1. Demographic Environment- monitors population in terms of age, sex, race, occupation, location and other statistics.

Population is getting Younger Marrying later, fewer children, working women, and nonfamily households

Changing Age Structure

Changing Family Structure

Moving to the Urban Areas

Increased college attendance and white-collar workers

Geographic Shifts

Increased Education

Growing Ethnic and Racial Diversity

Hindu, Muslim, Christians, Sikhs etc.. Whites, blacks, Brahmins, Kshyatriyas etc..

Macro Environment
2. Economic Environment GDP growing at around 8.5% India's Per Capita Income has tripled from $ 423 in 2002 03 to $ 1219 in 201011, averaging 14.4% growth over these eight years Income Distribution One of the fastest-growing economies in the world Recession FDI

Economic Environment

Economic Development

Key Economic Concerns for Marketers

Changes in Income

Changes in Consumer Spending Patterns

Categories of Indian Consumers Destitute

Annual Income Rs. 1 - 16,000

Aspirants
Climbers Consuming Class Rich

Rs. 16,000 22,000

Rs. 22,000 45,000 Rs. 45,000 2,15,000 Rs. 2,15,000 and above

Macro Environment
3. Natural Environment Considering extent of endowment of natural resources in the country, ecology, climate etc.. Natural Resources: Extent to which the country/region is endowed with the natural resources effects the functioning. Raw materials-the major part Ecology: Environmental Pollution, protection of wild life.

Climate: Product demands depend on the climate

Changing Role of Government

Anti-Pollution Pressures

Factors Affecting the Natural Environment

Shortages of Raw Material

Increased Costs of Energy

Macro Environment
4. Technological Environment Production, logistics, communication entertainment, education, health care be it any sphere, technology has revolutionized it. E- Commerce changed the mode of conducting business

Rapid Pace of Change

High R & D Budgets

Issues in the Technological Environment

Unlimited opportunities For Improvements

Increased Regulation

Macro Environment
5. Political Environment Marketing strategies and decisions are affected Environment is composed of Laws, Government Agencies that influence and limit various organizations and individuals

Increased Legislation

Key Trends in the Political Environment

Political Stability

Greater Concern for Ethics

Macro Environment
6. Socio-Cultural EnvironmentSociety shapes basic values, perceptions, preferences, and behaviors.

Culture can influence decision making.

Core beliefs are persistent; secondary cultural values change and shift more easily. The cultural values of a society are expressed through peoples views.

Of Oneself

Of the Universe
Of Nature

Views That Express Values

Of Society

Of Others Of Organizations