2[1][1].Marketing Environment
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Transcript of 2[1][1].Marketing Environment
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MARKETING
ENVIRONMENT
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THE COMPANYS MARKETING
ENVIRONMENT
Company
Suppliers Distributors
& Dealers
Customers
Competitors
Public
The
Economy
Demography
Political &
Legal
Technology
Cultural
Factors
Social
Factors
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THE COMPANYS MARKETING
ENVIRONMENT
All Companies operate within a marketing
environment. This environment consists of all
the factors and forces that affect the companysability to transact effectively with its target
market.
This environment can be divided into :
(A) Micro-environment
(B) Macro-environment
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(A) MICRO-ENVIRONMENT
The microenvironment consists of the forcesclose to the company that affects its ability toserve its customers. It consists of followingcomponents :
(i) Companys internal environment(Companys other departments)
(ii) Suppliers
(iii) Marketing Intermediaries(iv) Customers
(v) Competitors
(vi) Publics
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MICRO-ENVIRONMENT
Suppliers
Company
Competitors
Marketing
IntermediariesCustomers
Publics
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(ii) SUPPLIERS
Suppliers are an important link in thecompanys overall customer value deliverysystem.
They provide the resources needed by the
company to provide its goods and services. Supplier developments can easily affect
marketing.
Marketing managers must watch supply
availability and must also monitor the pricetrends of their key inputs.(Rising supply costsmay force price increases that can harm thecompanys sales volume).
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(iii) MARKETING
INTERMEDIARIES Marketing intermediaries are firms that
aid the company in promoting, selling,
and distributing its goods to the finalbuyers.
They include middlemen, physicaldistribution firms, marketing serviceagencies and financial intermediaries.
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MARKETING
INTERMEDIARIESMiddlemen- are business firms that help thecompany in finding customers and/or close
sales with them. Middlemen are of two types : Agent Middlemen find customers and
negotiate contracts but do not take title tomerchandize, e.g. brokers, representatives.
Merchant Middlemen Buy, take title to thegoods, and resell merchandize, e.g. wholesalers,retailers etc.
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MARKETING
INTERMEDIARIES
Physical Distribution Firms - Assist
the co. in stocking and moving goodsfrom their original locations to their
destinations,e.g. ware housing firms,
transportation firms.
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MARKETING
INTERMEDIARIES
Marketing Service Agencies Assistthe company in promoting its products to
the right markets, e.g. marketing
research firms, advertising agencies,
marketing consultancy firms etc.
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MARKETING
INTERMEDIARIES
Financial Intermediaries Help
finance transactions or insure against therisks associated with the buying and
selling of goods, e.g. banks, credit
companies, insurance companies etc.
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(iv) CUSTOMERS /
MARKETS.
CompanyConsumer
Market
Business
Market
Reseller
MarketGovt.
Market
International
Market
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(v) COMPETITORS To be successful, a company must provide
greater customer value and satisfaction than its
competitors (Marketing Concept). Marketers must do more than simply adapt to
the needs of target customers. They also must
gain strategic advantage by positioning their
offerings strongly against competitors
offerings in the minds of consumers.
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COMPETITORS
Four basic competitions faced by acompany :
(Most attention is paid on brand competition)
Company
DesireCompetition
Generic
CompetitionProduct Form
Competition
Brand
Competition
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(vi) PUBLICS Any group that has an actual or potential
interest in or impact on an organizations
ability to achieve its objectives.
Co.Financial
Public
MediaPublic
Govt.
Public
Citizen
Action
Public Local
Public
GeneralPublic
Internal
Public
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PUBLICS Financial Publics (Banks, investment houses
and stock holders)
Media Publics (Newspapers, magazines, andradio & T.V. stations)
Govt. Publics (Rules & regulations related tosafety, truth in advertising and other matters)
Citizen-action Publics (Consumerorganizations, environmental groups, minoritygroups etc.)
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PUBLICS Local Publics (Neighborhood residents
and community organizations)
General Publics (General publics overall
attitude toward co.s products and
activities)
Internal Publics (Companys workers,managers, volunteers and the board of
directors)
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(B) MACRO-ENVIRONMENT
CompanyDemographic
Forces
Economic
Forces
Natural
Forces Technological
Forces
Political Forces
Cultural
Forces
It is useless to tell a river to stop running; the best thing is to
learn how to swim in the direction it is flowing
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MACRO-ENVIRONMENT An organizations success depends on the
ability of its executives to manage its
marketing system in relation to itsexternal environment. These forces
(macro-environmental forces) are
uncontrollable and pose opportunities
and create threats for the company.
TODAY YOU HAVE TO RUN FASTER TO
STAY IN THE SAME PLACE.
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INDIAN MARKETING
ENVIRONMENTFew Examples
How some ofthe industry leaders losttheir
competitive advantage because they failedto perceive the environmental changes.?
The decade of 1980ssaw many ofthe
industrytitans losingtheircompetitiveadvantage to relatively new entrants..
(Contd..)
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Few Examples Hindustan Motors and Premier
Automobiles lost their pre-eminentposition in the Indian market to MarutiUdyogs Maruti 800.
Mahindra and Mahindra were shaken upby Maruti Udyogs Gypsy.
Titan watches heralded a new era ofwatches and shook the giant HMT.
Hindustan Levers Surf was cornered byNirma.
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Few Examples Television giants like NELCO,Crown,
Weston, Salora,Bush etc. lost out to
absolutely new firms and brands like
Onida and Videocon.
Videocon launched its washing machine
in1998 and suddenly thereafter, one sawan explosion in the market with about
half-a-dozen brands.
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HOW TO ANALYZE
THE CASE STUDY ? (1) Introduction : ( Write a brief
introduction of the case study ).
(2) Situation Analysis : ( Afterunderstanding the case do the situation
analysis ). SWOT / SWORT Analysis
is one of the Universally practiced way of
doing the situation analysis. If enough
information is given n the case, then do
the SWOT / SWORT Analysis.
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HOW TO ANALYZE
THE CASE STUDY ?
(3) Identify the problems ( Specify major
problem area ).
(4) Suggest the Solutions ( Alternative
solutions ). Recommend the best solutionin your view.
(5) If at the end of the case ,questions are
asked, then you can answer them directlyjust after the Situation Analysis (SWOT).
(6) Conclusion (if any)
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HOW TO ANALYZE
THE CASE STUDY ? SWOT / SWORT ANALYSIS :
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
Leveraging
Challenging
(Problem)
ConstraintsVulnerable
RISKS