Marketing Environment & Marketing Strategies | UNIT - 2 | M 104 | Rajasthan Technical University

1. Marketing Environment
&
Marketing Strategies
UNIT – 2

2. What is ‘Marketing Environment’?
• Marketing environment consists of all the
factors and forces, internal as well external that
influence the business and its capacity to
operate.
• Some of these factors are under the control of
the company while others are not under the
company’s control

3. Marketing Environment: Characteristics
• Marketing environment is dynamic, it keeps on
changing
• Marketing environment is proportional to the
size of the company. Larger the company,
larger is its marketing environment
• Marketing environment is place specific,
different countries have different marketing
environments

4. Marketing Environment: Characteristics
• Marketing environment provides strength,
weakness, opportunities and threats to the
business
• Marketing environment is complex, many
factors and forces come into play together in
marketing environment
• Marketing environment is uncertain, its future
course can only be guessed

5. Marketing Environment: Classification
• Marketing Environment can be classified into
two categories:
Internal environment: internal to the company
or the organization, controllable
External environment: external to the company
of the organization, non controllable

6. Internal Marketing Environment
• The internal environment considers everything
inside of the bounds of the company.
• This includes staff at all levels and from all
departments, financial and management
decisions / influences and more.
• Factors in the internal environment can be
controlled by the organization.
• Internal marketing environment offers strength
and weakness to the business

7. Internal Marketing Environment:
Factors
• Internal Marketing Environment includes:
Staff members – all departments
e.g. management, finance, research and
development, purchasing, business operations and
accounting
Capital assets
Company policy
Logistics
Inventory

8. External Marketing Environment
• The external environment considers everything
outside of the bounds of the company.
• This includes competitors, customers etc .
• Factors in the internal environment cannot be
controlled by the organization.
• External marketing environment offers
opportunities and threats to the business

9. External Marketing Environment
• External Marketing Environment includes:
 P – Political Environment
E – Economic Environment
T – Technological Environment
E – Ecological Environment
L – Legal Environment

10. Factors affecting Marketing Environment

11. Functions of Marketing Environment
It offers strength to the business [internal
environment]
It offers opportunities to the business to operate
and expand
Marketing environment encourages growth of
companies and economy, it is a growth enabler
Marketing environment encourages new product
development
It helps in expanding customers choice of
products through innovation

12. Strategic Marketing Planning
Strategic marketing planning involves setting
goals and objectives, analyzing internal and
external business factors, product planning,
implementation, and tracking your progress.
Strategic marketing plans are based on three
key components: diagnosis, strategy, and
communication.

13. Strategic Marketing Planning

14. Strategic Marketing Planning:
Advantages
Helps the company to evaluate current marketing
environment
Helps the company to establish clear marketing
goals
Helps to identify the actions needed to achieve
goals
Contributes to the success of the company in the
market
Prepares the company for facing the dynamic
marketing environment

15. Managing and Controlling Marketing
Program
There is no planning without control.
Marketing control is the process of monitoring
the proposed marketing plans as they proceed
and making adjustments where necessary
Control is a very important managerial
function in which gaps are identified and
corrective actions are taken

16. Types of Marketing Control
• There are four types of marketing controls:
Annual Plan Control
Profitability Control
Efficiency Control
Strategic Control

17. Annual Plan Control
• Annual plan control is the monitoring of
current marketing efforts and results to ensure
that the annual sales and the profit goals are
achieved.
• Annual plan control signifies continuous
ongoing performance verification against the
annual plan and taking the necessary corrective
actions.

18. Annual Plan Control Process
• Setting Monthly or quarterly targets
• Monitoring actual performance
• Identifying serious deviations
• Taking corrective actions

19. Annual Plan Control Tools
• Five tools are considered in annual plan
control process:
• Sales Analysis
• Market Share analysis
• Market expense analysis
• Financial Analysis [Ratio Analysis]
• Customer Attitude tracking [through surveys]

20. Profitability Control
• Profitability control is to determine the actual
profitability of the firm’s products, territories,
market segments and trade channels.
• Profitability control is exercised to examine
whether the company is making and losing the
money.

21. Profitability Control
• This profitability control information is so vital
to the management that it is possible to take
discerning decisions on expansion, contraction
or suspension of marketing activities.
• Profitability control or profit analysis refers to
the study of profit generated and contribution
made to it by different products, regions and
the customers.

22. Efficiency Control
• Efficiency control is the task of improving the
efficiency of such marketing activities as
personal selling, advertising, sales-promotion
and distribution.
• Efficiency control is undertaken to evaluate
and improve the spending efficiency and
impact of marketing expenditures on the
marketing operations.

23. Efficiency Control
• The responsibility rests with the marketing
controller and marketing departmental line and
staff people.
• There is close relationship between
profitability and efficiency. Poor profits mean
less efficient management of sales-force,
advertising, sales-promotion and physical
distribution.

24. Efficiency Control
• These four areas are analyzed for efficiency
control:
Sales efficiency
Advertizing efficiency
Sales promotion efficiency
Distribution efficiency

25. Strategic Control
• Strategic control is the crucial task of making
sure that the company’s marketing objectives,
strategies and systems are optimally adapted to
the current and forecasted marketing
environment.
• Strategic control refers to the in-depth study
undertaken to examine whether the company is
pursuing its best opportunities with respect to
markets, products and channels.

26. Strategic Control
• It is the responsibility of the top management
and the marketing auditor.
• Such an investigation is a must because;
marketing is an area where rapid obsolescence
of objectives, policies, strategies and
programmes is a regular possibility.