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Lecture 6 - Marketing Environment - Micro & Macro

The document analyzes the marketing environment that consists of internal and external factors affecting a company's ability to serve its customers. It discusses the microenvironment including suppliers, customers, and intermediaries. It also discusses the macroenvironment including demographic, economic, natural, technological, political-legal, and cultural forces. It concludes with a discussion of SWOT analysis and responding to changes in the marketing environment.

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Divij Hajela
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132 views21 pages

Lecture 6 - Marketing Environment - Micro & Macro

The document analyzes the marketing environment that consists of internal and external factors affecting a company's ability to serve its customers. It discusses the microenvironment including suppliers, customers, and intermediaries. It also discusses the macroenvironment including demographic, economic, natural, technological, political-legal, and cultural forces. It concludes with a discussion of SWOT analysis and responding to changes in the marketing environment.

Uploaded by

Divij Hajela
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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ANALYSING THE MARKETING

ENVIRONMENT

Dr. Devkant Kala


Marketing Environment
“ A company’s marketing environment consists of the
actors and forces that affect the company’s ability to
develop and maintain successful transactions and
relationships with customers.”

- Philip Kotler
Micro Environment

The microenvironment consists of the actors close to the


company that affect its ability to serve its customers.

These elements affect only


the individual firm.
It can be controllable up to
certain extent.
Macro Environment

The macro environment consists of the larger


societal forces that affect the microenvironment.

These elements affect all


firms within the industry.

It is not controllable.
The Company
❖ Top Management
❖ Ideology of the company
Consumers/Customers Market types:
• Consumer
✓ Modern Indian Consumer & Consumer Dynamics • Business
✓ Gen-C (Connected). Tech-Savvy. • Government
• Reseller
✓ Demand fast response. Low Attention time. • International
✓ Lifestyle-oriented & profile-conscious
✓ Rely on social networks to make informed purchasing decisions
✓ Rising disposable income and increasing western influence
✓ Women Empowerment. Equal participation in decision-making
✓ Teens – Influence family decision-making in urban India.
Suppliers
❖ Provide supplies
- Right time, Right quality, Right quantity

❖ Bargaining power
◦ A small number of dominant, highly concentrated suppliers
exists.
◦ Few good substitute raw materials or suppliers are available.
◦ The cost of switching raw materials or suppliers is high.

❖ Forward Integration – Increase competition for existing firms


Market Intermediaries
Physical Marketing Services Financial
Resellers
Distribution Firms Agencies Intermediaries

❖ Help promote, sell, and distribute products to the final buyer.


❖ Place of origin to place of consumption.
❖ Substitute the product.
❖ Don’t follow/participate in business strategies.
❖ Wrong Selection of Marketing Services Agencies.
Public
A public is any group that has an actual or potential interest in
or impact on a company’s ability to achieve its objectives.
The environmentalists, consumer protection groups, media
persons, local people, Internal public are some of the well-
known examples of the public.
Competitor

❖ Brand Competitor

❖ Industry Competitor

❖ Generic Competitor
Michael Porter Five Forces Model of Competition
Macro Environment

The macro environment consists of the larger societal forces


that affect the microenvironment.

These elements affect all


firms within the industry.
Not controllable.
Demographic Environment
❖ Study of Human Population
❖ Size, density, location, age, race, gender, occupation, and education
❖ Generations: Baby Boomer, Gen X, Gen Y, Gen Z, Gen Alpha
❖ Trends of Interest:
◦ World population growth
◦ Increased diversity
◦ Changing age structure within India
◦ Changing households
◦ Higher education
◦ Geographic shifts
Economic Environment
❖ Factors that affect consumer buying power and spending patterns

❖ Inflation, Per-capita Income, Exchange rate, Skewed income


distribution.

❖ Taxes

❖ Trends of interest:
◦ Changes in income
◦ Consumer – Saving & Debt
◦ Changing spending patterns
Natural Environment
❖ Growing shortages of raw materials
❖ Increased pollution
❖ Increased government intervention
❖ Focus on environmental sustainability strategies
Technological Environment
❖ New technology creates new markets & opportunities
❖ Replaces existing products and services
❖ R& D activity drives this sector
❖ Digital India Campaign
❖ Growth of AI, Robotics, Machine Learning & Blockchain
❖ Digital Transformation of Business – Cost Reduction
❖ COVID 19 Pandemic Impact
❖ Privacy Issues
Political-Legal Environment
❖ Laws, government agencies, and pressure groups
❖ Influence and limit organizations and individuals
within a society
❖ Business legislation is used to protect consumers,
businesses, and the interests of society
Cultural Environment
❖ Institutions and other forces that influence

❖ Society’s basic values, perceptions, preferences, and behaviors

❖ Core beliefs passed on through family

❖ Secondary beliefs are more open to change

❖ Change in Family structure, Social Class, Social values, etc.


SWOT Analysis
Favourable Unfavourable

Strength Weakness
Internal (Things the company does (Things the company does
well) not do well)

External
Opportunity Threat
(Favorable conditions that (Unfavourable conditions
favor strengths) that create challenges)
Responding To The Marketing Environment

There are three kinds of companies:

1. Those who make things happen.


2. Those who watch things happen, and
3. Those who wonder what has happened.

Successful companies recognize and respond profitably to unmet


needs and trends.
Thank You.

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