The document discusses marketing environment and strategies. It defines marketing environment as consisting of internal and external factors that influence a business. The internal environment is controllable while the external is uncontrollable. Marketing strategies include strategic planning, which involves goal setting, analysis, implementation and tracking. Strategic planning helps evaluate opportunities and threats. Marketing control ensures plans are monitored and adjusted, including annual, profitability, efficiency and strategic controls.

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.