Marketing Environment and expert guideline
- 1. MARKETING ENVIRONMENT AND EXPERT LECTURE. By – Siddharth Sonar CLASS – FY BBA ROLL NO – 336
- 2. WHAT IS ENVIRONMENT ? Environment literally means the surroundings , external objects, influences or circumstances under which someone or something exists. The environment of an organization is the aggregate of all conditions, events and influences that surrounds and affects it. Since the environment influences an organization in many ways, its understanding is of crucial importance. WHAT IS MARKETING ENVIRONMENT ? According to Philip Kotler, “Marketing environment refers to the external factors or forces that affect the company’s ability to develop and maintain successful relationship with its target customers”.
- 3. TYPES OF MRKETING ENVIRONMENT - Marketing Environment consists of two components: Micro Environment Macro Environment
- 4. It refers to the company’s immediate environment i.e. those environmental factors that are in its proximity. These factors affect the company’s prospects directly. Micro environmental factors are as under: Organizational internal environment: It consists of different inter- related groups of an organization.
- 6. Suppliers : The suppliers to a firm provide resources that are needed by that firm and thereby alter its competitive position and marketing capabilities. There are raw material suppliers, energy suppliers, suppliers of labour and capital etc. Intermediaries: Market intermediaries are business houses or individuals who come to the aid of the company. They are middlemen (wholesalers, retailers), distributing agencies etc.
- 7. PRODUCER CONSUMER PRODUCER CONSUMER PRODUCER WHOLESALER RETAILER CONSUMER WHOLESALER
- 8. CUSTOMERS - Customers: The customers of a company may be of five types: 1. Ultimate customers 2. Industrial customers 3. Resellers 4. Government and other non- profit customers 5. International customers.
- 9. Competitors: Competitors are those who sell the goods and services of similar description in the same market. Identification of competitors is of utmost importance. Therefore it is essential to build an efficient system of marketing. Public: A public is defined as “any group that has an actual or potential interest in or impact on a company’s ability to achieve its objectives”. To build goodwill and to seek favourable response, it is very crucial for a company to satisfy its general public as well.
- 10. MACRO ENVIRONMENT - Macro environment refers to those factors which are external forces in the company’s activities and do not concern the immediate environment. These are uncontrollable factors which indirectly affect the concern’s ability to operate in the market effectively. TECHNOLOGICAL DEMOGRAPHIC POLITICAL SCOPE MACRO
- 11. FACTORS OF MACRO ENVIRONMENT - 1. Demographic factors 2. Economic factors 3. Physical factors 4. Technological factors 5. Political and legal factors 6. Socio - cultural factors
- 12. 1. Demographic factors: Demography is the study of population in terms of size, density, location, age, gender, occupation etc. These factors have a huge impact on the marketing decisions of the company. For example, a growth in population means increasing human needs which results in the expansion of product markets, in there is sufficient purchasing power. 2. Economic factors: It consists of factors related to the means of production and distribution of wealth that have an impact on the functioning of an organization. It affects the spending power of people. Further economic development and growth affects the product choice of the customers. For example- per capita income, Balance of payment position, Gross national product, inflation, deflation etc. 3. Physical factors: Components of physical forces are the earth’s natural renewable and non renewable resources. Natural renewable resources are forests, food products from agriculture or sea. Non renewable resources are finite such as oil, coal, minerals etc. both these components often change the level and type of resources available to a marketer for his production. 4. Technological factors: Advances in technology are an important uncontrollable environment for marketers in two ways: First, they are totally unpredictable; and secondly, the adoption of new technology is often prevented by constraints imposed by internal and external resources. It is a source of new and better products. For example advancement in communication and infrastructural technology- electronic marketing, video conferencing etc.
- 13. 5.Political and legal factors: These factors include the policies related to public sector, small scale industries, sick industries, import and export, licensing, development of backward areas etc. the vast governmental network of laws and regulations have varied impact on marketing activities. 6. Socio - Cultural factors: It comprises of society and culture. A society is a set of relations among people including their social status and roles. Culture consists of attitudes, customs, beliefs and values of a society.
- 14. A LECTURE ON MARKETING ENVIRONMENT -
- 16. THANK YOU … !