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    Studying Marketing Environment

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    krishani
    This chapter discusses the importance of analyzing a company's marketing environment. It covers the mega environment, including factors like technology, the economy, culture, politics, law, and the natural world. It also discusses the business-specific environment, such as the market, customers, industry, competition, suppliers, and societal influences. Various techniques are presented for conducting environmental analysis, including scenario planning, trend analysis, and quantitative models. Three major developments impacting today's environments are also highlighted: the influence of large tech companies, deglobalization trends, and the digital revolution.

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    Studying Marketing Environment

    Uploaded by

    krishani
    70 views12 pages
    This chapter discusses the importance of analyzing a company's marketing environment. It covers the mega environment, including factors like technology, the economy, culture, politics, law, and the natural world. It also discusses the business-specific environment, such as the market, customers, industry, competition, suppliers, and societal influences. Various techniques are presented for conducting environmental analysis, including scenario planning, trend analysis, and quantitative models. Three major developments impacting today's environments are also highlighted: the influence of large tech companies, deglobalization trends, and the digital revolution.

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    2. Studying Marketing Environment

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    This chapter discusses the importance of analyzing a company's marketing environment. It covers the mega environment, including factors like technology, the economy, culture, politics, law, and the natural world. It also discusses the business-specific environment, such as the market, customers, industry, competition, suppliers, and societal influences. Various techniques are presented for conducting environmental analysis, including scenario planning, trend analysis, and quantitative models. Three major developments impacting today's environments are also highlighted: the influence of large tech companies, deglobalization trends, and the digital revolution.

    Copyright:

    © All Rights Reserved
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    Download as pptx, pdf, or txt
    70 views12 pages

    Studying Marketing Environment

    Uploaded by

    krishani
    This chapter discusses the importance of analyzing a company's marketing environment. It covers the mega environment, including factors like technology, the economy, culture, politics, law, and the natural world. It also discusses the business-specific environment, such as the market, customers, industry, competition, suppliers, and societal influences. Various techniques are presented for conducting environmental analysis, including scenario planning, trend analysis, and quantitative models. Three major developments impacting today's environments are also highlighted: the influence of large tech companies, deglobalization trends, and the digital revolution.

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    You are on page 1of 12

    CHAPTER TWO

    Studying Marketing Environment


    Topics Covered

    Grasp of environment: The foundation for marketing


    Grasp of environment is particularly important in present times
    Mega environment and business-specific environment
    The tasks in environment analysis
    Developing the opportunity–threat profile
    Techniques of environment analysis
    Three break-out developments on the environment front
    Grasp of Environment: The Foundation
    for Marketing
    It is in the environment that marketing operates.
    It is by securing the right fit between the environment and the firm
    that marketing prospers.
    Opportunities as well as threats to the firm lie in the environment.
    It is by tapping the opportunities and countering threats that the
    firm achieves its objectives: sales, profits, growth and so on.
    Grasp of Environment Is Particularly
    Important in Present Times
    Present times constitute an era of disruption.
    Sweeping changes ushered in by technology
    Exhibit 2.1 ‘Disruption Becomes the New Normal; Continuous Study of
    Environment Becomes Inescapable’ explains how disruption becomes the new
    normal and continuous analysis of environment becomes inescapable.
    Mini Case 2.2 ‘How Technology Impacts the Environment of an Industry: The
    Case of Telcos’ explains how technology impacts the environment of an
    industry.
    Mini Case 2.3 ‘How Government Policies Impact the Environment of an
    Industry: The Case of Telcos’ explains how government policies impact the
    environment of an industry.
    Continued…
    Grasp of Environment Is
    Particularly Important in Present
    Times
    As value delivery acquires added significance, environment becomes more vital.
    Linkage between value delivery and environment

    • To know what value to be offered, to whom and how, the firm needs to
    probe the environment.
    • Grasp of environment becomes the bedrock of strategy.
    • Marketing, as a whole, is just interaction with the environment.

    Mini Case 2.1 on GM and Toyota explains the linkage between value delivery and
    environment analysis.
    Chart 2.1 ‘Purpose of Environment Analysis’ explains the purpose of environment
    analysis in a nutshell.
    Mega Environment and Business-
    specific Environment

    For a business firm, the environment carries two main parts:

    1. Mega environment

    2. Environment specific to the business of the firm


    Chart 2.2 ‘Checklist of Components of Environment to Be
    Analysed’ presents a complete checklist of all the components of
    environment that need to be covered in environment analysis.
    Mega Environment
    Today, technology is the prime environmental factor.
    Exhibit 2.2 ‘Mobile Apps Reach Great Heights’ explains how mobile apps
    are continuously evolving to new heights and Exhibit 2.3 ‘Mobile Becomes the
    Technology Platform for Several Services’ explains how the mobile has become
    the technology platform for several services.

    Economic environment
    Chart 2.3 on economic environment lists the factors that need to be
    analysed under economic environment.

    Sociocultural environment
    Culture, subculture and social class

    Political environment
    Developments on the political front keep affecting the economy/business
    all the time.
    …Continued
    Mega Environment
    Legal environment/business legislation
    Business legislation can be classified into various categories.
    Demographic/consumer environment
    For management, demographics is a major element.
     Government policies
    They impact both mega environment and business-specific
    environment.
    Natural environment
    Natural resources, ecology and climate affect the business. Ideas like
    green marketing demand the attention of the firm.
    Exhibit 2.4 ‘Embracing Electric Mobility’ explains how the corporates are
    now getting into action and making common cause with society, government
    and consumers (car users) .
    Environment Specific to the
    Firm’s Business
    The market/demand
    Nature of the demand, its size, changes, invasion of substitute
    products, pattern of consumption and so on.
    The consumer
    Consumer tastes and preferences fluctuate.
    Chart 2.4 ‘Analysing the Consumer: Factors to Be Monitored’ lists the details
    about the consumers which are required for proceeding with various
    marketing management tasks, which together accomplish value delivery.
    Industry and competition
    A fundamental requirement for developing a marketing strategy; covered
    in detail in Chapter 6.
    Continued…
    …Continued
    Environment Specific to the
    Firm’s Business
    Government policies specific to the industry
    • Every industry has its share of government regulations/guidelines.
    • Governments are also large buyers of products and services.
    • Governments are also producers of products/services, hence
    competitors.
    Supplier-related factors
    They are allies as well as competitors.
    Trade environment/distribution-related factors
    Distribution/channels is a dynamic environmental factor.
    Opening up of retail to FDI and growth of modern retail are examples.
    Influence of society upon business
    Society has its concerns about functioning of corporates.
    Techniques for Environmental Analysis
    Various techniques, quantitative and qualitative, are used:

    • Scenario planning/scenario writing


    • Problem-situation models
    • Delphi studies
    • MIS of the firm
    • Sales forecasting techniques
    • Trend analysis
    • Benchmarking
    • Econometric models
    Three Break-out Developments on the
    Environment Front
    Overarching influence of the tech giants
    Five big tech companies control the world’s wealth generation
    They wield great influence over humanity

    The creeping deglobalisation trend


    A backlash against globalisation

    The digital revolution


    ‘Digital’ now permeates all spheres of life

    Marketers have to grapple with the effects of these developments.

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