enviroment

1. Chapter 2
The Marketing Environment

2. Marketing Environment
 Consists of actors and forces outside the organization that
affect management’s ability to build and maintain
relationships with target customers.
 Environment offers both opportunities and threats to the
company.
 Marketing intelligence and research used to collect
information about the environment.

3. Marketing Environment

4. Marketing Environment
 Includes:
 Microenvironment: actors close to the company that affect its
ability to serve its customers. (suppliers, marketing
intermediaries, competitors etc.)
 Macroenvironment: larger societal forces that affect the
microenvironment. (demographic, economic, political etc.)
 Beyond the control of the organization.
 Environmental constraints

5. The Company’s
Microenvironment
 Company’s Internal Environment:
Areas inside a company.
Affects the marketing department’s
planning strategies.
All departments must “think
consumer” and work together to
provide superior customer value and
satisfaction.

6. The Company’s
Microenvironment
 Company’s Internal Environment:
 Suppliers
 Marketing intermediaries
 Markets/ Demand
 Competition
 Publics

7. The Company’s
Microenvironment
 Suppliers:
 Provide resources needed to produce goods and services.
 Important link in the “value delivery system.”
 Most marketers treat suppliers like partners.

8. The Company’s
Microenvironment
Customers:
 Five types of markets that purchase a company’s goods and
services
Markets Include:
 Consumer
 Business
 Reseller
 Government
 International

9. The Company’s
Microenvironment
 Competitors:
 Those who serve a target market with products and services
that are viewed by consumers as being reasonable substitutes
 Company must gain strategic advantage against these
organizations

10. The Company’s
Microenvironment
 Publics:
 Group that has an interest in or impact on an organization's
ability to achieve its objectives
 Publics Include:
•Financial
•Media
•Government
•Citizen-action
•Local
•General
•Internal

11. The Macroenvironment

12. The Macroenvironment
 The company and all of the other actors operate in a larger
macro environment of forces that shape opportunities and
pose threats to the company.
 Forces Include:
Technological
Political
Cultural
Demographic
Economic
Natural

13. Demographic
Environment

14. The Company’s
Macroenvironment
 Demographic:
 The study of human populations in terms of size, density,
location, age, gender, race, occupation, and other statistics.
 Marketers track changing age and family structures,
geographic population shifts, educational characteristics, and
population diversity.

15. Demographics of India
 Population:1.37 bn (2019)
 Growth rate:1.51% (2009 approx)
 Birth rate:20.22 births/1,000 population (2013 approx)
 Death rate: 7.4 deaths/1,000 population (2013 approx)
 Life expectancy:68.89 years (2011 approx)–male:67.46 years
(2011 approx)–female:72.61 years (2011 est)

16. Demographics of India
Age structure:
0-14 years: 27.34% (male 186,087,665/female
164,398,204)
15-24 years: 17.9% (male 121,879,786/female
107,583,437)
25-54 years: 41.08% (male 271,744,709/female
254,834,569)
55-64 years: 7.45% (male 47,846,122/female
47,632,532)
65 years and over: 6.24% (male
37,837,801/female 42,091,086) (2017 est.)

17. Demographics of India
Table 1: (2011 Census) Religious Data
Hindus : 79.8%
Muslims : 14.2%
Christians : 2.3%
Sikhs : 1.7%
Buddhists : 0.8%
Jains : 0.4%
Other Religions : 0.7%
Religion not Stated : 0.1%

18. Demographics of India
Languages of India
Official language(s) Hindi written in the
Devanāgarī script
(the Indian Constitution recognises English as
a subsidiary official language)
Regional language(s)Assamese ·Bengali ·
Bodo · Chhattisgarhi · Dogri · Garo ·
Gujarati · Standard Hindi · Kannada ·
Kashmiri · Khasi · Kokborok · Konkani ·
Maithili · Malayalam · Manipuri · Marathi ·
Mizo · Nepali · Oriya · Punjabi · Sanskrit ·
Santali · Sindhi · Telugu · Tamil · Urdu

19. States and territories of India
 Indian is a federal union of states comprising twenty-nine states and
seven union territories. The states and territories are further
subdivided into districts and so on.

20. Geographic Concentration of
Population in India
 Approx. 193mn household in the country
 71% population is concentrated in rural areas.
 Approx. 29% population lives in Urban areas.
 52% nuclear households
 19% joint families
The literacy ratio of India is 74.04% (2011) with male
literacy at 82.14% and female literacy at 65.46% .

21. Increasing Diversity
 India is a “salad bowl”
 Various groups mixed together, each retaining its ethnic and cultural
differences
 Increased marketing to:
 Children
 Youth `

22. Generations

23. Economic Environment

24. Economic Environment
 Income Distribution
 Upper class
 Middle class
 Working class
 Underclass
Consists of factors that affect consumer
purchasing power and spending patterns.

25. Urban SEC
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26. Urban SEC
 Education +Consumer durables + land owned
© Oxford University Press 2015. All rights reserved.

27. Rural SEC
© Oxford University Press 2015. All rights reserved.

28. Economy of The Republic of
India
 Rank : 5th GDP and 3rd in PPP
 Currency1 Indian Rupee (INR) = 100 paise
 Fiscal year1 April — 31 March
 Statistics
 GDP $2.936 trillion ( 2019 est)
 GDP growth 5 % (2019 est)
 GDP by sector Agriculture: 15.4%, Industry: 23 %, Services: 61.5%
(2017)
 Inflation 3.05% ( May 2019)
 Population below poverty line 21.3% (less than $1.25 per day)
(2016)

29. Economy of The Republic of
India
Labour force 502 million (2018)
Labour force by occupation
agriculture (44%), industry (25%), services
(31%) (2018)
Unemployment 10.8 million people
Main industries
telecommunications, textiles, chemicals, food
processing, steel, transportation equipment,
cement, mining, petroleum, machinery,
information technology

30. Economy of The Republic of
India
 Exports $330 billion (2018)
 Export goods
software, petroleum products, textile goods, gems and
jewelry, engineering goods, chemicals, leather
manufactures
Main export partners
US, UAE, China , EU, Hongkong.
Imports $514 billion (2018)
Import goods
crude oil, machinery, gems, fertilizer, chemicals
Main import partners
China, Saudi Arabia, US, UAE, ASEAN

31. Natural Environment

32. Natural Environment
 Factors Impacting the Natural Environment:
 Shortages of raw materials
 Increased pollution
 Increased government intervention
 Environmentally sustainable strategies

34. Technological Environment
Changes rapidly.
Creates new markets and opportunities.
Challenge is to make practical, affordable
products.
Safety regulations result in higher research
costs & longer time between
conceptualization and introduction of
product.

35. Political Environment
Includes Laws, Government Agencies, and
Pressure Groups that Influence or Limit
Various Organizations In a Given Society.
Areas of concern:
Increasing legislation
Changing government agency enforcement
Increased emphasis on ethics and socially
responsible behavior

36. Cultural Environment
The institutions and other forces that affect a
society’s basic values, perceptions, preference,
and behaviors.
Core beliefs and values are passed on from
parents to children and are reinforced by
schools, churches, business, and government.
Secondary beliefs and values are more open to
change.

37. Responding to the Marketing
Environment
 Environmental Management Perspective
Taking a proactive approach to managing
the environment by taking aggressive (rather
than reactive) actions to affect the publics
and forces in the marketing environment.

39. Consumer Environmental Segments
 Genuine Greens
 Not Me Greens
 Go-with-the-Flow Greens
 Dream Greens
 Business First Greens
 Mean Greens
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.