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Ch 2

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Ch 2

  1. 1. MARKETING MANAGEMENT Chapter 2 UNDERSTANDING THE MARKETING ENVIRONMENT
  2. 2. Definition and Concepts <ul><li>“ A company’s marketing environment consists of the actors and forces outside marketing that affect management’s ability to build and maintain successful relationships with target customers.” (Philip Kotler) </li></ul><ul><li>The microenvironment consists of the following actors close to the company that affect its ability to serve its customers: (1) The company (2) The suppliers (3) The marketing intermediaries (4) The customer markets (5) The competitors (6) The public. </li></ul><ul><li>The macro environment consists of the following larger societal forces that affect the microenvironment: (1) Demographic (2) Economic (3) Natural (4) Technological (5) Political (6) Legal (7) Cultural. </li></ul>
  3. 3. Microenvironment Macro environment
  4. 4. Opportunities <ul><li>Examples of Opportunities Posed by Marketing Environment in India </li></ul><ul><ul><ul><ul><ul><li>The New Economic Policies of the Government of India in general. </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>The New Industrial Policy. </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Liberalisation of industrial licensing. </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Foreign Exchange Regulation Act (FERA) and Monopolies and Restrictive Trade Practices Act (MRTP) liberalization. </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Curtailment of and disinvestments in public sector. </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>The New Trade Policy – lowering of import tariffs, abolition of import licenses, convertibility of rupee, globalisation, etc. </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Fiscal and monetary reforms, banking sector reforms, capital market reforms. </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Removal or phasing out of subsidies. </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Encouragement to foreign direct investment (FDI). </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Dismantling of price controls and introduction of market-driven price environment. </li></ul></ul></ul></ul></ul>
  5. 5. Threats <ul><li>Examples of Threats Posed By Marketing Environment In India </li></ul><ul><ul><ul><ul><ul><li>Entry of Multi-National Companies (MNCs) into the Indian market on a large scale increases the competition for products and services. </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>‘ Survival of the fittest’ rule forces many weaker and small-scale companies to close down due to non-viability. </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Big players start buying smaller players through mergers and acquisitions. </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Removal of subsidy affects profitability and viability of many industries. (Fertiliser industry is one such affected sector where units had to close down or stop products of certain products). </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Banks and insurance sector came under competitive environment and were compelled to operate viably, at par with the private sector. </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>In general, many industrial units across India faced a destabilization consequent to the economic reforms. Their markets, market shares and profits came under severe pressure and viability became a big question. </li></ul></ul></ul></ul></ul>

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