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Analyzing marketing environmnet


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Analyzing marketing environmnet

  2. 2. Xerox invented photocopying and for decades flat out dominated the industry it had created. But Xerox’s harrowing experience provides a cautionary tale of what can happen when a company – even a dominant market leader - fails to adapt its changing marketing environment.
  3. 3. Xerox has rethought, redefined, and reinvented itself. The company now ―connects closely with customers in a content rich digital marketplace.‖
  4. 4. Two disciplined methods  Marketing Intelligence: The systematic Collection and analysis of publicly available information about consumers, competitors and developments in the marketing environment.  Marketing Research: The systematic Design, collection, analysis and reporting of data relevant to a specific marketing situation facing an organization.
  5. 5. Marketing Environment?  The actors & forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers.
  6. 6. Actors close to the company that affect its ability to serve its customers. MICRO ENVIRONMENT
  8. 8. The Company  Top Management  Finance  Research & Development  Purchasing  Operations  Accounting
  9. 9. Suppliers  Provide resources needed by the company to produce its goods & services.  Treated as Partners in creating & Delivering customers value.
  10. 10. Marketing Intermediaries Firms that help company to promote, sell and distribute its goods to final buyers.
  11. 11. Marketing Intermediaries Resellers Physical Distribution Firms Marketing Service Agencies Financial Intermediaries
  12. 12. Competitors To be successful, a company must provide greater customers value & satisfaction that its competitors do.
  13. 13. Publics  Any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives.  Financial Public  Media Public  Government Public  Citizen Action Public  General Public  Internal Public
  14. 14. CUSTOMERS Consumer Markets Business Markets Resellers Markets Government Markets International Markets
  15. 15. Consists of broader forces that affect the actors in the microenvironment. MACRO ENVIRONMENT
  17. 17. Demographic Environment  The study of human populations in terms of size, density, location, age, gender, race, occupation and other statistics.
  18. 18. Demographic Environment  Increasing Population  ―1 Bn population in Asia will move to cities in next 20 years.‖ Haruhiko Kuroda, President Asian Development Bank.  Rapid growth in urban population in Asia  In India, urban population to rise to 523 million by 2025 Source: Marketing Whitebook 2007-08, Businessworld, p.84
  19. 19. Demographic Environment  Growing Middle class  McKinsey Global Institute (MGI) has divided the Indian population into 5 economic classes  Division based on real annual disposable income
  20. 20. MGI division of Indian Population  Deprived households  have an annual disposable income of less than Rs 90,000. The poorest economic class  Mostly unskilled or semi‐skilled workers on daily wages  Aspirers  have an annual disposable income in the range of Rs 90,000 to Rs 200,000  Spend most of their income on basic necessities  Small‐time retailers, small farmers, etc.
  21. 21. MGI division of Indian Population  Seekers  have an annual disposable income between Rs 200,000 and Rs 500,000.  Mostly white‐collar employees, mid‐level government officials, newly employed postgraduates, medium‐scale traders.  Strivers  have an annual income ranging from Rs 500,000 to Rs 1,000,000. Have a stable income source and access to amenities  Mostly professionals such as lawyers, CAs, senior government officials, rich farmers
  22. 22. MGI division of Indian Population  Global Indians  have an annual disposable income in excess of Rs 1,000,000 Creamy layer in society  Globe‐trotters with a high standard of living
  23. 23. Demographic Environment  Growth in the rural population  A changing family system  The changing role of women  Increasing diversity
  24. 24. Economic Environment  Factors that affect consumer buying power and spending patterns.  Global Financial Crisis  Changing Income Distribution and consumer spending patterns. Ernst Engel—Engel’s Law  As income rises: The percentage spent on food declines  The percentage spent on housing remains constant  The percentage spent on savings increases
  25. 25. Natural Environment  Involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities.  Shortages of raw materials  Increased pollution  Increase government intervention  Environmentally sustainable strategies
  26. 26. Technological Environment Robotic surgery Miniature Electronics Laptops, Computers and Internet Credit Cards Televisions Automobile
  27. 27. Political Environment  Laws and Government agencies that influence and limit various organizations and individual in a given society.  Laws covering issues like  Competition  Fair Trade practices  Environmental Protection  Product Safety  Consumer Privacy etc.
  28. 28. Cultural Environment  Institutions and other forces that affect society’s basic values, perceptions, preferences and behaviors.