Marketing Environment, Customer Satisfaction,

Customer Value, Concept of value chain

• The marketing environment consists of the task environment and the broad environment.

• The task environment includes the actors engaged in producing, distributing and promoting the offering. These are the company suppliers, distributors, dealers and the target costumers.

• The broad environment consists of six components:• Demographic• Economic• Physical• Technological• Political-Legal• Social-Cultural

PEST Analysis• The Political EnvironmentLaws, government agencies and pressure groups that

influence and limit various organizations and individuals in a given society.

• The Economic EnvironmentThe factors that affect consumer buying power and

spending patterns. Nations vary greatly in their level of distribution of

income (subsistence or agricultural Vs industrial economies).

PEST Analysis Contd..• Technological Environment

Forces that create new technologies, creating new product and market opportunities

• The Social Environment

Institutions and other forces that affect society’s basic values, perceptions, preferences and behaviors.

SWOT Analysis

• A final and necessary step of the strategic analysis involves bringing together the critical strengths, Weaknesses, Opportunities and Threats in such a way that strategy options are immediately obvious.

• To discover strengths and weaknesses we look at the internal analysis (managerial processes). Similarly we can obtain a good indication of opportunities and threats by looking at PEST analysis.

• The SWOT is a valuable tool in visualizing strategic options and searching possible alternative strategies for the company.

Customer Satisfaction

• Satisfaction reflects a person’s judgements of a product’s perceived performance (or outcome) in relationship to expectations. If the performance falls short of expectations, the customer is dissatisfied and disappointed. If it matches expectations, the customer is satisfied. If it exceeds then, the customer is delighted.

Customer Value

• Value reflects the sum of the perceived tangible and in tangible benefits and costs to customers. It’s primarily a combination of quality, service, and price (“qsp”), called the customer value triad.

Value Chain Concept

• A value chain is a chain of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service to the market.

Michael Poter’s Value Chain

Assignment-2

1. PEST analysis and SWOT analysis of any company of your choice.