MARKETING ENVIRONMENTPresented byNIMISHA A

MARKETING Acc to American marketing association

“Marketing is an organizational function and a set of process for creating, communicating and delivering value to customers and for managing relationships in ways that benefit the organization and its stake holders”

MARKETING ENVIRONMENTThe market environment is a

marketing term and refers to factors and forces that affect a firm’s ability to build and maintain successful relationships with customers

COMPONENTS OF MARKETING ENVIRONMENT

MICRO ENVIRONM

ENT

MACRO ENVIRONM

ENT

MICRO ENVIRONMENT

The micro-environment affects the organization directly. It refers to the environment that most closely linked to the firm

This environment is not also under the full control of business.

The business is influenced by this environment.

MICROENVIRONMENT

Components

Customer

Supplier

Intermediari

es

Competitor

Public

Company

THE COMPANY

Company organization consists of Board of Directors and functional managers.

Marketing plans are drawn up as per the philosophy of Top management.

Marketing decisions like new products, expansion, etc depend on the support of top management. It depends upon finance, managerial skills, organization’s strengths and weaknesses.

SUPPLIERS Suppliers are firms

and individuals that provide the resources needed by the company.

They are an important link in the company’s overall customer “value delivery system.”

SUPPLIERS

Timely

Price

Quality

Right Product

COMPETITORS To be successful, a company must satisfy

needs and wants of consumers better than competitors

Must understand competitor’s strengths Must differentiate firm’s products and

offerings from those of competitors

INTERMEDIARIES

CONTD…..Marketing Service Agencies•They help the company target and promote its products.•Advertising agencies. Media agency, marketing research firms, etc.

Financial Intermediaries•They help finance transactions and insure against risks.•Banks, credit companies, insurance company, ect.

CUSTOMER Customers are the

actual buyer of our goods and services.

They are large in number

influenced by cultural, social and psychological factors

CUSTOMER MARKET•individuals and households that buy goods and services for personal consumption

Consumer Market

•buy goods and services for further processing or for use in their production process

Business Market

•buy goods and services in order to resell them at a profitReseller Market

•agencies that buy goods and services in order to produce public services or transfer them to those that need them

Government Market

•buyers of all types in foreign countriesInternational Market

PUBLIC A public is any group that has an actual

or potential interest in or impact on an organization’s ability to achieve its objectives.

A company should prepare a marketing plan for all of their major publics.

PUBLIC GROUP

Public Group

Financial

Government

Media

LocalGeneral

Citizen

Internal

MACRO ENVIRONMENT The major external and uncontrollable

factors that influence an organization's decision making, and affect its performance and strategies. These factors include the economic factors, demographics, legal, political, and social conditions, technological changes, and natural forces.

MACROENVIRONMENT

company

Demographic

forces Economic forces

Technological forces

Political forces

Cultural

forces

Natural forces

DEMOGRAPHIC Demography is the study of human

populations in terms of size, density, location, age, gender, race, occupation, and other statistics

Demographics change over time and companies must keep up with them

ECONOMIC ENVIRONMENT

The economic environment consist of factors affecting consumers purchasing power and spending patterns both across and within their world markets.

ECOLOGICAL ENVIRONMENT• Involves the natural resources that are needed as

inputs by marketers or that are affected by marketing activities

Ecological factors have recently assumed great importance

Trends Shortages of raw materials Increased pollution Increased government intervention

TECHNOLOGICAL ENVIRONMENT

The technological environment is perhaps the most dramatic force now shaping our destiny.

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

Technological Innovation.

Role of research and development.

POLITICAL & LEGAL ENVIRONMENT The political

environment consist of laws, government agencies, and pressure groups that influence and limit various organizations and individuals in the given society.

CONTD…….. Political factors means how and in which

manner and in what degree a govt interfere in business.

Laws and Regulationsfor safetyfor consumer protectionto protect special interests

CULTURAL ENVIRONMENTCultural

Environment of a nation determines the value system of the society which in turn affects the functioning of the Business.

CONCLUSION Marketing environment-micro & macro

environment Micro factors- company, competitors,

customers, suppliers, intermediaries, public Macro factors- political, economic, ecological,

demographic, technology, legal, socio-cultural.

Thank you……