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MARKETING. ENVIRONMENT. ENVIRONMENT. Actors & forces outside marketing that affects marketing management’s ability to build and maintain successful relationship with target customer Marketing research & marketing intelligence Microenvironment Macroenvironment . MICROENVIRONMENT.

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marketing

MARKETING

ENVIRONMENT

environment
ENVIRONMENT
  • Actors & forces outside marketing that affects marketing management’s ability to build and maintain successful relationship with target customer
  • Marketing research & marketing intelligence
  • Microenvironment
  • Macroenvironment
microenvironment
MICROENVIRONMENT
  • Actors close to the company that affects its ability to serve its customers – company, supplier, marketing intermediaries, customer markets, competitors, publics
  • Creating customer value and satisfaction to build relationship with customers
slide4

COMPANY

SUPPLIER

MARKETING

INTERMEDIARY

CUSTOMER

COMPETITORS

PUBLICS

company
COMPANY
  • Other company groups/ departments
    • Top management
    • Finance,
    • Research & development
    • Purchasing
    • Operations
    • Accounting
  • Marketing managers make decision within strategies & plans made by top management
  • All must think “customer” & work in harmony
suppliers
SUPPLIERS
  • An important link in customer value delivery system
  • Provide resources for its products & services
  • To watch supply availability – any problems can seriously affect marketers
    • Supply shortage
    • Labour problems
    • Price trends of key inputs
  • Walmart – suppliers – “a tough & demanding customer but helps you get there”
marketing intermediaries
MARKETING INTERMEDIARIES
  • Help company promote sell and distribute its products to final buyers.
    • Resellers
    • Physical distributors
    • Marketing service firms
    • Financial intermediaries
    • Wholesalers/retailers
  • Examples –walmart, malls & other departmental stores
  • Coca- cola as exclusive beverage provider to many companies
customers
CUSTOMERS
  • Five types of customers markets
  • Consumer markets
  • Business markets
  • Relseller market
  • Government market
  • International market
competitors
COMPETITORS
  • Provide greater customer value and satisfaction that its competitors
  • More than simply adapt the needs of target customers
  • Strong positioning – in the minds of people
  • No single strategy best for all companies
publics
PUBLICS
  • Any group that has actual or potential interest in or impact on organisation’s ability to achieve the objectives
  • Financial publics- banks, investment firms, stockholders
  • Media publics-
  • Government publics-
  • Citizen action publics
  • Local publics
  • General publics
  • Internal publics
macroenvironment
MACROENVIRONMENT
  • Consists of larger societal forces that affect the macroenvironment –
    • demographic,
    • economical,
    • natural,
    • technological,
    • political and
    • cultural forces
macro environment forces dentpc
Macro-Environment Forces (DENTPC)
  • The macro - environment of any business consists basically of six factors:
  • Demographic Environment population- people make up the markets.
  • keenly interested in the size and growth rate of population in
    • different cities,
    • regions and
    • nations,
    • age distribution and
    • ethnic mix.
world population
WORLD POPULATION
  • INTERNATIONAL SCENARIO- population explosion; India will overtake China by 2025 as most populous
  • If world be a village of 1000 people-
    • 520 men & 480 women
    • 330 children, 60 above 65yrs,
    • 10 college graduates, 335 illiterate adults
    • 52 North Americans, 55 Russians, 84 Latin Americans, 95 Europeans, 124 Africans, 584 Asians
    • 165 speak Mandarin, 86 English, 83 Hindi/ Urdu, 64 Spanish, 58 Russians, 37 Arabic, rest one of over 200 languages
    • 329 Christians, 178 Muslims, 132 Hindus, 62 Buddhists, 3 Jews, 167 non religious, 45 atheists and 86 others
literacy levels
LITERACY LEVELS
  • Definition- above 15 yrs and able to read & write
  • In India- 70% males & 48% females are literate
  • 52% population male; 13% illiterate, 23.8% literate but non matriculate, 11.5% literate but non graduate. 3.4% graduate and above
  • Literacy levels vary according to age
    • 15-24= 76%; declines with age
slide15
US
  • BABY BOOMERS- 78 millions (300 millions) – 27.5%; 1946-64; 2.1 trillion $; 75% national assets; 40% national disposable income by 2029 (65yrs age); all walks of life; 25% ethnic minority
  • GEN X- in shadow of BBs; no characteristics; Baby busters; latchkey kids; divorcee & employed mothers; more cautious economic outook; more skeptical; MTV generation;
  • GEN Y-echo boomers; 1977-94; children of BBs; 76 m: 160 b $ spending; techno geeks:
china
CHINA
  • One child norm- little emperor/ little empress; six pocket syndrome; rapidly aging population; 75% childless homes
slide17

GENERATIONAL MARKETING- Separate products and marketing programme for each generation ?

  • CHANGING FAMILY – nuclear family; one income one car two children family ; two incomes two car one child family
    • More people divorcing
    • Live in partners
    • Late marriage
    • No issue
  • Non traditional households – special care
kool generation
KOOL GENERATION
  • Status symbol – mobile phones
  • Levi’s – streetwear – Sykes
  • Titan- “eye gear” – Fastrack
  • Sony Ericsson – 3D gaming mobile
  • Scooters – mobikes
  • MTV/ channel V
  • Hinglish
  • Youth culture – Valentine Day/ Friendship Day
geographical shifts
GEOGRAPHICAL SHIFTS
  • Great migratory movements-population shift
  • Metro cities
  • Rural to urban (micropolitan areas beyond metropolitan cities)
  • Telecommute
  • Telebusiness
  • SOHO (small office / home office)
slide20

A better educated, more white collar, more professional population

  • Increasing diversity
  • Gay & Lesbian community
  • Disabled community
economic environment
Economic Environment
  • GDP/ Per Capita GDP/ PPP/ Per Capita income/ Growth of economy/ FE reserves/Inflation/ Stock Market/ demographic indicators
  • available purchasing power in an economy, which depends on the
    • current prices,
    • savings,
    • debt and
    • credit availability.
  • pay close attention to the major trends in income and consumer spending patterns.
  • Changes in Income/ Income distribution
  • Changing consumer spending patterns
  • Economic forecasting
ncaer study 2002 1996 2006 figures in millions
NCAER STUDY (2002)(1996 & 2006) (figures in millions)
  • 5 GROUPS OF HOUSEHOLDS
    • Destitutes (<16000 pa) (33/ 190.4 (16.5 / 95)
    • Aspirants (<22000 pa) (44/ 254 (20.2/117)
    • Climbers (<45000 pa) (54.1/312.2 (81.7/472)
    • Consuming class (<2,15000 pa) (32.5/186(75.5/432)
    • Rich (own money and wide range of products) (1.2/ 7(5.2/ 30)
  • CHANGING CONSUMPTION PATTERN- scooters/ M800 car
changing patterns 1999 v s 2003
CHANGING PATTERNS1999 v/s 2003 (%)

PHILOSOPHY OF EARN NOW AND SPEND LATER

EARN NOW AND SPEND NOW

study
STUDY
  • RESEARCH INTERNATIONAL 2002- significant regional differences in values/ attitudes/ preferences of women – 4 clusters
  • Traditionalism and self sacrifice to westernisation and individualism
  • Based on shopping habits- categories of women
    • “Liberated youngsters” (13%)
    • “Modern mums” (18%)
    • “Behind the times” (20%)
    • “Rebellious youngsters (22%)
    • “Orthodox mothers (27%)
natural environment
Natural Environment
  • be aware of the threats and opportunities associated with the four trends
    • the shortage of raw material,
    • the increased cost of energy,
    • the increased levels of pollution(environmentally sustainable business), and
    • the changing role of the governments.
green marketing
GREEN MARKETING
  • OBSTACLES
  • Over exposure & lack of credibility
  • Consumer behaviour
  • Poor implementation
technological environment
Technological Environment
  • One of the most dramatic forces shaping people’s lives. a force for "creative destruction.“
  • Wonders or blunders
  • New technologies that provide superior value in satisfying needs stimulate investment and economic activity.
  • In the meantime minor innovations fill the gap, involve less risk ; too much research effort is going into producing minor improvements rather than major breakthroughs.
slide28

New technology creates major long-run consequences that are not always foreseeable.

  • RFID –smart chips
  • Practical, affordable and safe
  • Accelerating pace of change
  • unlimited opportunities for innovation
  • Greater emphasis on R&D
  • Increased regulations of technological change
examples
EXAMPLES
  • RAYMOND LTD. –
    • fabrics made from exotic fibres.
    • Tancel, natural fibre from woodpulp; blended with wool- greater softness and drape;
    • Casein, a fibre made from milk protein - a butterfly feel;
    • Bamboo & Soyabeanfibres for softness & resilience
  • SAMSUNG- Digital Home Business
  • VIRTUAL REALITY (VR) – 3 D computer generated environment (sight, hear & touch) – automobile, kitchen , exterior home design
political legal environment
Political / Legal Environment
  • Marketing decisions are strongly affected by the developments in the political and legal environment.
  • that influence and limit various organisations and individuals.
    • laws,
    • government agencies and
    • pressure groups
business legislation
BUSINESS LEGISLATION
  • PURPOSE - To charge businesses with social costs created by their products or production processes
    • To protect businesses from unfair competition
    • To protect consumers from unfair business practices
    • To protect society form unbridled business behaviour
social environment
Social Environment
  • The society in which people grow shapes their beliefs, values and norms.
  • People absorb, almost unconsciously, a wide view that defines their relationship with themselves, others, nature and the universe.
  • Socially responsible
  • Cause related marketing- one rupee on each notebook sold to CRY; paperless accounts statements;
  • Do well by doing good
cultural environment
Cultural environment
  • Persistence of cultural values
  • Shift in secondary cultural values
  • People’s views
    • People’s view of themselves- “Do It Yourself” “Adventurers”
    • People’s view of others- “cocooning” “Digital Age”
    • People’s view of organisation- “work for money” “scams”, “economic downturn”
    • People’s view of society- “patriotism”
    • People’s view of Nature – “LOHAS” market- everything natural (green)
    • People’s view of Universe-”religion”, “spiritualism”
reacting to environment
REACTING TO ENVIRONMENT
  • 3 TYPES OF COMPANIES
    • Those who make things happen
    • Those who watch things happen
    • Those who wonder what has happened
  • View the environment as uncontrollable to which to react and adapt-avoid threat and take advantage of opportunities
  • Proactive stance – firm aggressive action
  • Cannot always control environment forces – shifting population/ economic environment/ major cultural shift; but taking proactive steps is in our hands