Marketing Mix for Diploma Level

1. Marketing EnvironmentMarketing Environment
Maxwell RanasingheMaxwell Ranasinghe
B.Sc. ( Business Administration) Hons.B.Sc. ( Business Administration) Hons.
MAAT, Attorney at Law, CPM ( NewMAAT, Attorney at Law, CPM ( New
Haven- USA) MSLIMHaven- USA) MSLIM

2. Marketing EnvironmentMarketing Environment
• All businesses are not alone in the market
place.
• There are many factors that influence
businesses
• These factors are called the “ Marketing
Environment”

3. Marketing EnvironmentMarketing Environment

4. INTERNAL ENVIRONMENTINTERNAL ENVIRONMENT
STAFF RELATIONSHIPS
CORPORATE
STRUCTURE AND
CULTURE
RESOURCE
CONSTRAINTS
I
N
T
E
R
N
A
L
Behavior of the
company in
dealing with
others

5. Staff Relationships
• Relationship among the staff affects the
operations of the organisation
• Management should develop a conducive
environment to develop staff relationships
• Employees should not convey a negative
image of the organisation to external
sources

6. • Staff members
• The message that is conveyed by staff to
others ( third parties) have a big impact
rather than the paid advertisements of the
organisation
• Members of the public consider staff
members as the authoritative and they are
far more likely to believe what staff
members say

7. • Therefore an organization must do its
internal marketing well to inform the
company’s policies, and obtain the
commitment and loyalty of the staff
• Staff is paid salaries by the organisation
and staff should act to safeguard the
organisation’s interest for their own benefit
too.

8. • Organizational Structure
• An organisation in general will have two
structures
• Formal Structure ( As per the
organizational charts who is on the top of
the hierarchy, what are the functional
departments and who heads them and
what they do and how many positions are
under them, who is responsible for what
and whom is under whom)

9. Formal HierarchyFormal Hierarchy

10. • Informal structure
– It cannot be shown on an organisational structure
formally but there are many informal structures in
organisations
– Friendships, alliances among staff members who
go in the bus or train together, who take lunch
together, whose wives or family members are
friends, who are from the same town or village
etc.
– These relationships are very strong and it could
influence for positive and negative aspects in an
organisation

11. Informal groupsInformal groups

12. • Corporate culture
• Culture is a set of shared values, rules, and
perceptions in a given society.
• There are such cultures in organisations too
• This is called in a company “ the way we do
things around here”
• It has a powerful influence on the actions and
behaviors of the members of the staff
• It is not an easy task to change the
organizations culture if it is not conducive for an
efficient operation

13. • Resource Constraints
• All organisations operate within a limited amount
of resources
• Men. Material, Money, Machines and
Technology are the limiting resources
• Organisation should use systems where they
could get the maximum out of the existing
resources
• The effective and efficient way of adopting
resources is the key to success.

14. • Lets sing a song in a different format
• Song
• Block A- – 1st
verse
• Block B- – 2nd
verse
• Block C- Lala Lala interlude
• Block A and B- Me eeree
• Block C – Lala lala interlude
• Block A and B – Api duwamu api panimu
•

15. • ..Akuru Maki Na - MusicTrack (Without
Voice) .mp4

16. Micro EnvironmentMicro Environment
• Micro environment is much closer to the
marketer than the macro environment
• It directly deals with the operational
environment
• It comprises of
• Suppliers
• Intermediaries
• Competitors- Direct and Indirect
• Customers of a business/marketer
• Publics

17. Operational/Micro EnvironmentOperational/Micro Environment

18. SuppliersSuppliers
• Suppliers are called the “ Supply Chain”
• They could be the suppliers of all the materials
and utilities to the marketer to make its value
proposition ( product) to the market – machines
and plants, raw materials, components,
stationery, electricity, water, gas, other services,
advertising agencies, consultancies, etc
• Company cannot survive without suppliers
• Marketers should study about the suppliers
capacity, problems to have a good flow of
supplies

19. IntermediariesIntermediaries
• Marketing intermediaries- transport and logistics,
warehousing, dealers, distributors, wholesale
and retail network ( more than 160,000 retail
shops for FMCGs)
• The capacity and the efficiency of the
intermediaries are very important for a marketer
to serve its customers eg. Walls case
• They not only distribute but also stock, advertise,
provide credit, after sales services, break the
bulk, provide information

20. CompetitorsCompetitors
• Marketer is not alone in the market.
• Every action of the marketer has a reaction from
the competitors
• Knowing the competitors, their capacity, ability,
future moves, structure and operational
systems, objectives, strategies and tactics, will
provide so much of ammunition to the marketer
to face the challenges in the market place.
• Simply a SWOT Analysis of Competitors is
needed

21. Michael Porter’s Five Force ModelMichael Porter’s Five Force Model
in analyzing attractiveness of anin analyzing attractiveness of an
industryindustry

22. CustomersCustomers
• Customers are the most important
element in the micro environment
• They can be individuals or organizations
• A persons who makes the decision to buy
the product is called the customer and the
person who consumes the product is
called the consumer
• When customer and the consumer are
different the marketer have to consider the
needs of both
• customer.

23. • Many times customer and the
consumer would be the same.
• Marketer should study the
constantly changing needs of the
customer and fine tune his value
proposition accordingly to
satisfy/delight the

25. PublicsPublics

26. Macro (External) EnvironmentMacro (External) Environment
• External environment is the elements in
the periphery of the business.
• These elements are in the larger picture
and the marketer has no control over them
• These elements are very important and
have a tremendous influence on the
operations of the marketer
• Marketer has to take all these factors in to
consideration

27. Guideline to asses the customersGuideline to asses the customers
• Asses the customer’s current and potential needs and
match that with the marketers capacity
• Ability to serve customers current and potential need in
comparison to competitors
• Current status and Growth prospects of the customer
• What can we learn from customer
• How important is this customer in comparison to others
• What is the profitability of serving this customer
• Will serving this customer help attracting others

28. A list of main External EnvironmentA list of main External Environment
factors (PESTEEL)factors (PESTEEL)
• Political
• Economic
• Social and cultural
• Technological
• Ecological
• Ethical
• Legal

29. Political and Legal EnvironmentPolitical and Legal Environment
• Ploitical
• Political stability
• War and Peace
• Internal conflicts and struggles
• Strikes and stoppage of work
• Globalisation and opening up of markets
• Political affiliation and support to
governments

30. Economic EnvironmentEconomic Environment
• General economic condition of the world and the
country
• Income distribution -
• Employment levels and its structure
• Prices and inflation
• Boom and recession
• Balance of trade – surplus / deficit
• Exchange rate and fluctuation
• Stock market
• Banking and Credit
• Import and export duties
• Saving and investment

31. Social and Cultural EnvironmentSocial and Cultural Environment
• Society consists of large group of people with
shared customs and laws
• Culture consists of art, thought, and customs,
religions, practices of a society at any given time
• Any society will have its own culture. May be
unique or shared or mixed with other cultures.
• Peoples relationships and behavior will have a
major influence of the societies beliefs, values
and norms
• There could be different cultural groups within a
society

32. • Some of the socio cultural factors can be listed
as follows
– Demographic factors- population structure- age,
family size, ethnicity, income,
– Social Cultural behaviors- languages, religious
beliefs, mythology, gender roles, gift giving habits,
Social responsibility and ethics
– The impact of war
– Role of women in society
– Attitudes towards credit
– Concern about health

33. • The socio- cultural affect will influence
peoples attitudes towards buying
patterns, living patterns, dress codes,
fashion, sports, savings, social behaviors,
music, credit, marriage, and many areas
of life styles.
• Marketers have to be aware of them to
understand the customers and their
behavior

34. TechnologicalTechnological
• Technology is changing always
• Marketers have to be vigilant about it and
adapt to change
• There are so many innovations taking
place in the world.
• Some innovations make products and
processors improve dynamically and
some times they even replaces the old
products and make them obsolete

35. • What happened to typewriters, LP records,
audio and video cassettes, analogue phones
• What happened to standard post with email and
SMS
• What will happened to CDs
• Nano technology is knocking doors
• Genetic engineering
• Robots doing dangerous factory processors
• Development of many raw materials and
machines
• Containerization and shipping

36. Ecological EnvironmentEcological Environment
• People have considered planet as a
bundle of raw materials that could be
used to satisfy the needs of the
current generation
• That has made the exploitation of
resources without any barriers
• As a result we have lost lot of
resources and the bio diversity

37. • Main ecological issues are: Resource
Depletion- Pollution Concerns- Health
Related Concerns
• Therefore the marketers have to be very
careful of the natural environment in their
marketing activities such as production
processors, usage, consumption and
disposal
• Marketers should have an environment
friendly attitude

38. Ethical EnvironmentEthical Environment
• Ethics are moral principles that define right or
wrong behavior in marketing
• Laws are promulgated to safeguard most basic
ethics
• However, there are many other ethics that
marketers should adhere to although they are
not in existence in the form of law
• Marketers should have their own self regulatory
ethical standards if they are to become good
corporate citizens of the society

39. • Some important ethical issues
– Product issues : honest claims about effects of
products, use non hazadous raw material and
component, additives, declare what is used,
indicate nutritious values ( specially food items)
and side effects ( specially drugs)
– Pricing issues : price fixing among competitors,
predatory pricing ( pricing below cost to win
over competitors) hiding or not divulging the
operational cost or price of consumables,
charging very high prices

40. –Promotional issues ; deceptive or
misleading advertising, bribery and
commissions, unfair advertising, using
sex excessively as a strategy in
advertising
–Place issues: blocking distribution
channels, extending payment of credit
beyond the agreed terms, using
underworld elements to obtain orders
and block competition

41. LegalLegal
• Criminal and Civil laws will govern many
facets of society
• Especially marketers have to obey and
respect them
• Commercial laws, Company laws
employment laws, health and safety laws,
Intellectual Property laws, Environment laws,
directly affect the marketers, Consumer
Protection Laws,
• Other Religious and Civil Society
conventions, rights groups and practices
also affect the operation of businesses.