SCANNING THE MARKETING ENVIRONMENT

Marketing Environment Framework THE MARKETING ENVIRONMENT REFERS TO THE INTERNAL AND EXTERNAL INFLUENCES THAT AFFECT THE MARKETING FUNCTION. THE ACTORS AND FORCES OUTSIDE MARKETING THAT AFFECT MARKETING MANAGEMENT’S ABILITY TO BUILD AND MAINTAIN SUCCESSFUL RELATIONSHIPS WITH TARGET CUSTOMERS.

THE MARKETING ENVIRONMENT THE MARKETING ENVIRONMENT IS MADE UP OF MICRO-ENVIRONMENT IS DEFINED AS THE NEARBY ENVIRONMENT, UNDER WHICH THE FIRM OPERATES. EG. THE COMPANY, SUPPLIERS, MARKETING INTERMEDIARIES, CUSTOMERS MARKETS, COMPETITORS, AND PUBLICS. MACRO-ENVIRONMENT REFERS TO THE GENERAL ENVIRONMENT, THAT CAN AFFECT THE WORKING OF ALL BUSINESS ENTERPRISES. EG. DEMOGRAPHIC, ECONOMIC, NATURAL, TECHNOLOGICAL, POLITICA L, AND CULTURE FORCES.

Purpose of environmental scanning HELPS A COMPANY LEARN ABOUT MARKET TRENDS TECHNOLOGICAL ADVANCES POLITICAL/LEGAL SOCIAL ECONOMIC CLIMATE

Purpose of environmental scanning  To learn about customer behaviour & preferences.  Focus group  Surveys  Personal interview

SWOT ANALYSIS

MAIN PURPOSE MAIN PURPOSE OF SWOT ANALYSIS IS TO GAIN ABOUT A COMPANY’S CURRENT SITUATION

Types of business environment 1. Micro environment 2. Macro environment

Micro environment  Small forces within the company that affect its ability to serve its customers.  It can be controlled,however it cant influence an external environment.

Factors affecting micro environment 1. Customers Centred (oriented) 1. Customers - As all businesses need customers,they should be Centred (oriented) around customers.The firm’s marketing plan should aim to attract customers by satisfying their wants and needs and provide them excellent customer service 2.. Employees : 2.. Employees : Employing staff with relevant skills is essential.A firm should give proper training and opportunities to its employees for their growth and development,as it plays a critical role in achieving a competitive edge.If a business employs staff without motivation, skills or experience,it will affect customer service and ultimately sales.

3. Suppliers- 3. Suppliers- Suppliers provide raw materials to the businesses.If they provides poor services it will directly affect the quality of the finished product,which will lead to negative impact in the minds of customers and fall in sales. An increase in raw material prices may even lead to increase in price of the product. Close supplier relationships are an effective way to remain competitive in the market and secure quality products.

(4) Marketing Intermediaries Marketing intermediaries are firms that help the company to promote, sell, and distribute its goods to final buyers. Marketing intermediaries are firms that help the company to promote, sell, and distribute its goods to final buyers.

(5)Competitors To be successful, a company must satisfy needs and wants of consumers better than competitorsTo be successful, a company must satisfy needs and wants of consumers better than competitors A company should monitor the following variables when analyzing each of its competitorsA company should monitor the following variables when analyzing each of its competitors 1.Share of Market 2.Likely plans 3.Reputation

One Must understand competitor’s strengths and must differentiate firm’s products and offerings from those of competitors.One Must understand competitor’s strengths and must differentiate firm’s products and offerings from those of competitors.

6) Media Plays a vital role in enhancing image of an organization. Plays a vital role in enhancing image of an organization. Eg Launch time of Tata Nano. Eg Launch time of Tata Nano.

Macro environment Larger societal forces that affect the microenvironment considered to beyond the control of the organization The major external and uncontrollable factors that affects its decision making and affect it performance and strategies These factors include Economic factors Economic factors Demographic factors Demographic factors Legal Legal Political Political Social condition Social condition Legal Legal

Macro environment Specific examples of Macro environment Competitors Competitors Changes in interest rate Changes in interest rate Change in cultural taste Change in cultural taste Disastrous weather Disastrous weather Government regulations Government regulations

Cultural environment for McDonalds in India McDonald's fast food restaurant is one of the largest franchises in the United States as well as aboard. There are more than 32,000 McDonald's restaurants serving in 119 countries. More than 75% of McDonald's restaurants worldwide are owned and operated by independent owners serving almost 47 million customers each day

Petrol and Diesel Pricing Affecting the Pricing Oil price increases are generally thought to increase inflation and reduce economic growth. In terms of inflation, oil prices directly affect the prices of goods made with petroleum products.... Increases in oil prices can depress the supply of other goods because they increase the costs of producing them.

Macroeconomics in Indian auto industry Interest Rate Interest Rate Rising income level and demography Rising income level and demography Urbanization Urbanization Raw material price Raw material price Global environment Global environment USD fluctuation USD fluctuation India 2nd fastest growing market for passenger vehicles globally India 2nd fastest growing market for passenger vehicles globally

Technological Environment Emerging Tech Emerging Tech Tech transfer Tech transfer R&D effects R&D effects Communication Communication

Demographic factors Age Age Gender Gender Family life cycle Family life cycle Income Income

COCO Cola macro economic factors