The Marketing Environment
The General Environment
The general marketing environment consists of all those factors influenc...
The Micro Environment
The term Micro Environment denotes those elements over when the
marketing firm has control or which ...
D. Reseller Markets
These buy goods and services to sell them to other markets
Ex: C.Calleja
E. International Markets
Cust...
products. Only when management and org have clear understanding of the
factors and forces making up the competition enviro...
The Distribution environment entails the link between the marketing
organization and the final consumer. Some organisation...
A company’s marketing decision may be questions by consumer
organizations, environmental groups, minority groups and other...
Political Environment
Marketing decisions are strongly
affected by developments in the
political environment. The politica...
5. Local Councils
6. Authorities
Marketing Management must be on the lookout for changes in government
policies and legisl...
These are of concern to the marketing firm because many times they have
a direct effect on costs, prices and demand. The l...
5. Broken families
6. Children outside marriages
7. Gay families
8. Working women
Within any particular culture one finds ...
grocery products have been forced to respond to these innovations by
incorporating the barcode on their products, labels a...
Upcoming SlideShare
Loading in …5
×

21112333 the-marketing-environment

816 views

Published on

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
816
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
29
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

21112333 the-marketing-environment

  1. 1. The Marketing Environment The General Environment The general marketing environment consists of all those factors influencing the marketing organisation. The internal environment or proximate Micro Environment includes all factors that are within the control of the organisation. It is also important that an organisation studies its external or Macro environment. The Macro environment includes (generally) uncontrollable forces outside the organisation which may pose the most important opportunities and threats. The Micro Environment Controllable/Measurable • Company • Customers • Competitors • Suppliers • Middlemen • Society • Distribution The Macro Environment Non-Controllable/Non-Measurable • Political • Economic • Social • Technological • Enviromental • Legal P.E.S.T. Analysis ExternalInternal
  2. 2. The Micro Environment The term Micro Environment denotes those elements over when the marketing firm has control or which it can use in order to gain information that will help in its marketing operations. It is important to re-emphasise that the objective of marketing philosophy is to make profits trough satisfying customers. This is accomplished through the manipulation of the micro environment variables over which the company has control in such a way as to optimise the objective. The main components of the proximate micro environment are • Customers • Competitors • Suppliers • Publics • Distribution Customers A. Consumer Markets (Buying for personal use) Consists of individuals buying goods or services for personal consumption. B. Business Markets People Buying on behalf of the organisation. Ex: Buying a new ice cream machine for gelateria. C. Government Markets These include departments that buy goods to provide public services. Ex: Buying computers for government offices
  3. 3. D. Reseller Markets These buy goods and services to sell them to other markets Ex: C.Calleja E. International Markets Customers in the foreign market. Ex: Buying from the Internet. Any one from A, B, C, D are found in the international market. Competition Direct competition examples. Go and Vodafone Fitness and Special K Muller and Danone Algida and Motta BOV and HSBC Indirect Competition Examples When you have something replacing another. (Coca cola to water) (Gas to electricity) Who are our Competitors? What products and benefits are they offering? These are the questions and answers that an organisation must ask and find an answer in analysing the competitive environment the answers must all be compared with what the organisation is going at a point in time that is its offerings, special promotions visibly in the media etc... It must be said that there are only few firms which do not have any competition, like for example enemalta having said so any company must also consider indirect competition when studying the competition environment. Indirect competition is generally brought about by substitute
  4. 4. products. Only when management and org have clear understanding of the factors and forces making up the competition environment can they hope to compete efficiently. Suppliers Suppliers are business firms and individuals who provide goods and services to other organisations. Nearly every organisation whether engaged in manufacturing, whole selling or retailing is likely to have suppliers. Large firms are likely to have many suppliers. Purchasing is regarded a very important management function in an organisation. The main reason for this is the firms must be able to purchase goods and services are an acceptable price and quality. The organisation must also ensure that its suppliers are capable of offering an aceptable level of service on matters such as. A. Delivery Date B. Reliability C. Price D. Quality E. Stock Availability F. After Sales Service G. Credit Facilities. The buyer/supplier relationship is 1 of the economic interdependence, that is, both parties need each other for their commercial well being and profitability. Some companies tend to opt for multiple sourcing that is they buy from different suppliers to avoid over dependence on the other hand other organisations prefer to keep costs as low as possible with stock and supplier being available when needed. Distribution (Place)
  5. 5. The Distribution environment entails the link between the marketing organization and the final consumer. Some organisations opt for a direct marketing option. That is, the company sells directly to the end consumer. Other organizations use some other forms of intermediate distribution system this could include agents, whole sellers and retailers besides other things. Publics (Stake Holders) Stakeholders are anyone who may have an interest in the company Internal stakeholders are people working within the company Connected  Bank (Loans), Shareholders, Insuriances External  The general public. A publics or stakeholder is any group of people or 1 person that has an actual or potential interest on an organization’s ability to achieve its objectives. A. Financial Publics Influence the company’s ability to obtain funds B. Media Publics Media Publics are those that carry news, features and editorial opinions. Ex: News papers, magazines, radios and TV stations. C. Government Publics Management must take government developments into account. Marketers often consult to company’s lawyers on issues on products safety, truth in advantages and other matters. Government is generally concerned about companies because of tax collections. D. Citizen Action Publics Manufacturer Middle People Consumers
  6. 6. A company’s marketing decision may be questions by consumer organizations, environmental groups, minority groups and others. A company’s public relations market can help to stay in touch with consumer citizen groups. E. Local Publics Every company has local publics such as neighbourhood residents and community organizations. Large companies should ideally deal with the community, attend meetings, answer any queries and contribute to worthwhile causes. The Macro Environment The P.E.S.T. Analysis.
  7. 7. Political Environment Marketing decisions are strongly affected by developments in the political environment. The political environment has its own system or framework, it regulates society therefore it regulates the system. A political environment will have the following changes affecting a business. 1. Policies and Laws 2. Inflation (Increase in prices) 3. Taxation (V.A.T, eco tax....) 4. Unemployment and employment levels
  8. 8. 5. Local Councils 6. Authorities Marketing Management must be on the lookout for changes in government policies and legislations which can change due to a change in government. Changes in government and policies will affect a society as a whole and may influence the operations of an organisation. Firms operating in international markets must analyse international political develops to see what effect it has in its international market. Although generally the organisation has to adopt themselves to the political environment they can also influence the political climate, this could be done trough the following: 1. Federation of Industry 2. Chamber of Commerce 3. GRTU (General Retailers and Traders Union) Such organisations discuss new policies with the government and work for an agreement in the interest of the sector • Change in employment law • Discrimination Act Economical Environment Marketing organisations must understand the effects on the many economic variables, these include: 1. The level of inflation 2. Interest Rates 3. Employment and Unemployment levels
  9. 9. These are of concern to the marketing firm because many times they have a direct effect on costs, prices and demand. The level of domestic unemployment affects the demand for the consumer wants fall then chance is that the demand for industrial goods will decrease as well. The level of inflation is also bound to effect cost, price and demand. Inflation – When the product is a luxury product the likely hood of demand will decrease, but when it is a necessity product the demand will be constant as long as no cheaper replacements exists. Social (Cultural) Environment This is perhaps the most difficult element out of the pest analysis, manifesting its self in changing tastes, purchasing behaviour and changing patterns. The type of goods and services demanded by consumers is a function of their social conditioning and their consequent attitudes and believes Core based values are those firmly established within a society and as therefore difficult to changes they are transmitted trough family, church and the institutions of society which acts as relatively fixed parameters within which marketing firms are forced to operate. Secondary cultural values however tend to be less strong and therefore more likely to undergo change. Some changes that have occurred in the lass 20 – 30 years: 1. Use of plastic money 2. Use of personal credit 3. Fast food 4. Health consciousness
  10. 10. 5. Broken families 6. Children outside marriages 7. Gay families 8. Working women Within any particular culture one finds various sub-cultures having distinguished characteristics. Members of these sub-cultures tend to have common methods of behaviour such sub-cultural groups may include: • Religious groups • Cultural/Racial Groups IKEA was not shy to support the gay community. In 1994 they were running an advertisement in the US using 2 Gay man shopping for a dining room table together. Technological Environment Technology is a major variable which has influenced the development of man of the products we take for granted today like computers and T.V’s Marketing firm’s themselves play a part in the technological process, many having their own research department thus playing a part in innovating new developments. One example of how technology change has affected marketing activities is in the development in the electronic point of sale (E.P.O.S). The laser checkout reads barcodes on the product being purchased and stores information that is used to analyse sales and re-order stock as well as giving customers printed read out of the items purchased and the price changes. Manufacturing of fast moving goods particularly packaged
  11. 11. grocery products have been forced to respond to these innovations by incorporating the barcode on their products, labels and packaging. In this way a change in the technological environment has affected the products and services produce and the way the businesses carries out their operations.

×