5 Marketing Enviroment
Uploaded by
Kailash Nagar5 Marketing Enviroment
Uploaded by
Kailash NagarMARKETING
ENVIRONMENT
Marketing Environment
• Consists of actors and forces outside the
organization that affect management’s ability to
build and maintain relationships with target
customers.
• Environment offers both opportunities and
threats.
• Marketing intelligence and research used to
collect information about the environment.
Marketing Environment
• Includes:
o Micro environment: actors close to the
company that affect its ability to serve its
customers.
o Macro environment: larger societal forces that
affect the microenvironment.
Considered to be beyond the control of the
organization.
Actors in the Microenvironment
• The Company
• Suppliers
• Marketing Intermediaries
• Customers
• Competitors
• Publics
The Company’s Microenvironment
• Areas inside a company.
• All departments must “think consumer” and work
together to provide superior customer value and
satisfaction.
“Internal Branding is an important element of the branding
game. It is important that every element of your business
is aligned with your branding strategy - that includes your
people.
The bigger your organisation is, the more it takes to
educate your people. After all, the only way that your brand
can be properly explained to your end consumer is when
your people, fully immersed in the brand, are able to
articulate it. ”
Jui Hong Teoh, Brand Director, Phische Advertising, Malaysia
“We embarked on consciously building Virgin into a brand
which stood for quality, value, fun and a sense of
challenge. We also developed these ideas in the belief that
our first priority should be the people who work for the
companies, then the customers,
then the shareholders. Because, if the staff are motivated
then the customers will be happy, and the shareholders
will then benefit through the company’s success.”
– Richard Branson, Founder, Virgin Group.
The Company’s Microenvironment
• Suppliers:
o Provide resources needed to produce goods
and services.
o Important link in the “value delivery system.”
The Company’s Microenvironment
• Marketing Intermediaries:
o Help the company to promote, sell, and distribute its
goods to final buyers
Resellers
Physical distribution firms
Marketing services agencies
Financial intermediaries
The Company’s Microenvironment
• Customers:
• Competitors:
o Those who serve a target market with products and
services that are viewed by consumers as being
reasonable substitutes
o Company must gain strategic advantage against these
organizations
• Publics:
o Group that has an interest in or impact on an
organization's ability to achieve its objectives
Bargaining Power of Suppliers
• Jewellery Industry ,suppliers: S.A., UAE, Australia, US, Congo,
Botswana, Russia, DTC.
Bargaining Power of Buyers
• Two types: 1. Domestic buyers 2. Foreign buyers
• As investment (Demand increases)
• Bargaining power of India :Enhanced because India is the
largest consumer of gold jewellery.
Threat of Substitutes:
• Substitutes: Real assets, Stock market, Bank deposits &
mutual fund investment, Other types of jewellery like
imitation jewellery, bagasra jewellery, fashion jewellery.
• Second preferred investment behind bank deposits.
Barriers to entry
• Skilled manpower essential
• Advanced technology required
The Macroenvironment
• The company and all of the other actors operate
in a larger macro environment of forces that
shape opportunities and pose threats to the
company.
The Company’s Macroenvironment
• Demographic:
o The study of human populations in terms of size,
density, location, age, gender, race, occupation,
and other statistics.
o Marketers track changing age and family
structures, geographic population shifts,
educational characteristics, and population
diversity.
Economic Environment
• Consists of factors that affect consumer purchasing power
and spending patterns.
Natural Environment
• Involves the natural
resources that are
needed as inputs by
marketers or that are
affected by marketing
activities.
Factors Impacting the Natural
Environment
Shortages of Raw Materials
Increased Pollution
Increased Government Intervention
Environmentally Sustainable Strategies
Technological Environment
• Changes rapidly.
• Creates new markets and opportunities.
• Challenge is to make practical, affordable products.
• Safety regulations result in higher research costs
and longer time between conceptualization and
introduction of product.
Political Environment
Includes Laws,
Increasing Legislation
Government
Agencies, and
Pressure Groups
that Influence or Changing Government
Agency Enforcement
Limit Various
Organizations and
Individuals In a Increased Emphasis on Ethics
Given Society. & Socially Responsible Actions
Cultural Environment
• The institutions and other forces that
affect a society’s basic values,
perceptions, preference, and behaviors.
• Core beliefs and values are passed on
from parents to children and are
reinforced by schools, churches,
business, and government.
Thank You
