MARKETING ENVIRONMENT
THE MARKETING ENVIRONMENT The Marketing Environment can be defined all the Internal and External Factors and Forces that affect a firm’s ability to develop and maintain successful transactions and relationships with the target customers. Thus, Marketing Environment includes all forces that affect Marketing Policies, Decisions and Operations of a company
COMPONENTS OF MARKETING ENVIRONMENT Internal environment : Forces and actions inside the firm that affect the marketing operation composed of internal stake holders and the other functional areas within the business organization. External environment Micro environment Macro environment
Micro Environment 1.Suppliers 2.Customers 3.Intermediaries 4.Competitors 5.General Public Macro Environment 1.Demographic 2.Economic 3.Natural/Physical 4.Technological 5.Politico-legal 6.Socio-cultural Marketing Environment
Factors affecting Marketing environment 1.POLITICAL FORCES 2.ECONOMIC FORCES 3.SOCIAL AND CULTURAL FORCES 4.NATURAL FORCES 5.TECHNOLOGICAL FORCES 6.DEMOGRAPHIC FORCES
Political and Legal forces Includes laws, government agencies and pressure groups that influence or limit various organizations and individuals in a given society. Includes laws, government agencies and pressure groups that influence or limit various organizations and individuals in a given society. Increasing legislation. Changing government agency enforcement. More emphasis on ethics and socially responsible actions.
Economic Environment The economic environment consists of factors that affect consumers purchasing and spending power. Under economic environment manager generally studies 1. Trends of gross national product 2. Patterns of real growth in income 3. Variations in geographical income distribution. 4. Borrowing pattern,trends and governmental and legal restrictions. 5. Major economic variables
Social and cultural forces Social responsibility has crept into the marketing literature as an alternative to the market concept. Socially responsible marketing is that business firms should take the lead in eliminating socially harmful products
DEMOGRAPHIC FORCES Demographic data helps in preparing geographical marketing plans, household marketing plans, age and sex wise plans. It influences behavior of consumers which in turn will have direct impact on market place. A marketer must communicate with consumers anticipate problems,respond to complaints and make sure that the firm operates properly.
Technological Environment Most dramatic force now shaping our destiny. Changes rapidly. Creates new markets and opportunities Challenge is to make practical, affordable products. Safety regulations result in higher research costs and longer time between conceptualization and introduction of product.
Natural Forces Involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities.