1 Marketing Environment Airline Business Marketing Strategies Chapter 3 & 4.
Marketing Environment (1)
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The The Marketing Marketing Environment Environment Dr.S.Victor Anandkumar Associate Professor Department of Management Studies Pondicherry University 1
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Transcript of Marketing Environment (1)
The The Marketing Marketing
EnvironmentEnvironmentDr.S.Victor Anandkumar
Associate ProfessorDepartment of Management Studies
Pondicherry University
1
Marketing Marketing EnvironmentEnvironment
• … consists of the actors and forces outside marketing that affect marketing management’s ability to develop and maintain successful relationships with its target customers.
• Includes:o Micro-environment - forces close to the
company that affect its ability to serve its customers.
o Macro-environment - larger societal forces that affect the microenvironment.
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TargetConsumers
Product
Place Price
Promotion
Marketi
ng
Imple
mentat
ion
Marketing
Planning
Marketing
Control
Marketi
ngAn
alysis
Competitors
MarketingIntermediaries
PublicsSuppliers
Demographic-Economic
Environment
Technological-Natural
Environment
Political-Legal
EnvironmentSocial-Cultural
Environment
The Marketing The Marketing Process Process
The Company’s The Company’s Micro-environmentMicro-environment
• Company’s Internal Environment - functional areas inside a company that have an impact on the marketing department’s plans
• Suppliers - provide the resources needed to produce goods and services and are an important link in the ‘value delivery system’
• Marketing Intermediaries - help the company to promote, sell, and distribute its goods to final buyers. i.e. dealer
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The Company’s The Company’s Micro-environmentMicro-environment
• Customers - types of markets that purchase a company’s goods and services
• Competitors - those who serve a target market with similar products and services against whom a company must gain strategic advantage
• Publics - any group that perceives itself having an interest in a company’s ability to achieve its objectives
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Types of Customer Types of Customer MarketsMarkets
(B2C, B2B, B2G, channel, (B2C, B2B, B2G, channel, global)global)
Government Markets
International
Markets
ResellerMarkets
Business
Markets
Cons
umer
Mar
kets
Company
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Major Forces in the Major Forces in the Company’s Macro-Company’s Macro-
environmentenvironment
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The Company’s The Company’s Macro-environmentMacro-environment
• Demographic - Population in terms of size, density, location, age, gender, race, occupation and other statistics
• Economic - factors that affect consumer purchasing power and spending patterns
• Natural - natural resources needed as inputs by marketers or that are affected by marketing activities
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What can you make out from the What can you make out from the Consumption Patterns in these selected Consumption Patterns in these selected
Countries?Countries?
Economic Economic EnvironmentEnvironment
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EconomicDevelopment
Changes in Income:Value Marketing
Changing ConsumerSpending Patterns
KeyEconomic
Concerns forMarketers
Natural EnvironmentNatural Environment
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Factors Affecting
the Natural
Environment
Shortages of Raw Materials
Increased Pollution
GovernmentalIntervention
Environmentally SustainableStrategies
The Company’sThe Company’sMacro-environmentMacro-environment
• Technological - forces that create new technologies, creating new product and market opportunities
• Political - laws, agencies and pressure groups that influence and limit organizations and individuals in a given society
• Cultural - institutions and other forces that affect a society’s basic values, perceptions, preferences, and behaviors
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Technological Technological EnvironmentEnvironment
• Faster pace of technological change; products are outdated at a rapid pace.• Almost unlimited opportunities being developed
daily in health care, space industry, robotics, and bio-genetic field.
• Challenge is not only technical, but also commercial – make practical, affordable versions of products
• Increased regulation concerning product safety, individual privacy, and other areas that affect technological changes.
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Digital Digital DivideDivide
[Source: World Bank an [Source: World Bank an
UN]UN]
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Political EnvironmentPolitical Environment
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Increasing Legislation
Changing Government
AgencyEnforcement
Includes Laws, Government Agencies, Etc. that Influence & Limit Organizations/ Individuals in a Given Society
IncreasedEmphasis on
Ethics &Socially
ResponsibleActions
A Sampling of Government A Sampling of Government TypesTypes
• Insert Exhibit 6.1
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Source: Business Software Alliance – IDC Global Software Privacy Study
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Cultural EnvironmentCultural Environment
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People’s View of Organizations
People’s View of Nature
People’s View of Themselves
People’s View of Society
People’s View ofthe Universe
People’s View of OthersCultural Values
of a Society
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Rediff.com
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Cues from the cultural Cues from the cultural environment environment
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Responding to the Responding to the Marketing Marketing
EnvironmentEnvironment• Taking a proactive approach to managing the micro-environment and the macro-environment by taking aggressive (rather than passive) actions to influence the publics and forces in the marketing environment. •How? Hire lobbyists , run “advertorials”, press law suits, file complaints, form agreements, … 33
Global business Global business environmentenvironment
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A quick revisionA quick revision• Describe the environmental forces that
affect the company’s ability to serve its customers.
• Explain how changes in the demographic and economic environments affect marketing decisions.
• Explain the key changes faced by marketers from the political and cultural environment 35
