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WHAT IS ENVIRONMENT

Anything which is external to an organisation. It is

something that surrounds an organisation

All the factors and forces influencing the companys

ability to transact business effectively with its target

market.

These factors may be controllable or uncontrollable.

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MARKETING

ORGANISATI

ON

SOCIAL

ECONOMIC

ETHICAL POLITICAL

PHYSICAL

TECHNOLOGICAL

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SOCIAL FORCES

Customers are part of the society

It effect their life-style, taste, preferenceSOCIOLOGICAL

FACTORS

Every consumer is different in hisbehavior, personality, mentality

Study of Human Behavior

PSYCHOLOGICAL

FACTORS

National and regional character

Cultures and Sub-culturesANTHROPOLOGICAL

FACTORS

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ECONOMIC FORCES

CONSUMER

COMPETITION

PRICE

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ETHICAL FORCES

To make more and more profit the companies are

disintegrating the ethical values

Non-standardisation, adulteration, quality which effect the

health of the consumers

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POLITICAL FORCES

Government provides the legal framework which

regulates the business activities

What is to be produced, in what quantity, quality all may

be controlled by govt.

Levy and collection of taxes

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PHYSICAL FORCES

It refers to physical distribution of goods and services

The cost involved in setting up the distribution should beconsidered.

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TECHNOLOGICAL FORCES

Technology is ever-changing

Has its impact on marketing

New technology new idea new marketing effort

Example: DTH Services effect the existing cable network

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MACRO ENVIRONMENT Any organisation operates within an external environment

which cant be controlled

There are some forces which act in such a manner that a

change in them will effect the most of the organisations

operating in the economy

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Demographic

Technological

Social &

CulturalEconomic

Political &

LegalCompetition

Forces that Shape

Opportunitiesand Pose Threats

to a Company

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DEMOGRAPHIC FORCES Demography is the study of human population

Monitors population in terms of age, sex, race,occupation, location and other statistics

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ECONOMIC FORCES

Stages of business cycle

Boom: Add new products, enter new market, rise in demand

Depression: Fall in demand, stockpile

Inflation: Consumers spend less on luxuries and more

on necessities

Rate of interest: Consumer durables become costly

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COMPETITION

Keep an eye on competitors products, pricing,

distribution channel, promotion programmes etc.

Competition from global market also

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SOCIAL AND CULTURAL FORCES

People social and cultural life is changing

Today children decide what to but instead of parents

Youngsters have become more fashion conscious

People want environment friendly products

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POLITICAL AND LEGAL

FORCES Monetary and fiscal policy

Social legislation and regulation

Government relation with the industry

Legislation related specifically to marketing

Source of information and buyer of product

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TECHNOLOGY

Can start an entirely new industry like computers, robots

Can radically alter or totally destroy existing industry,Example: Pagers

Can stimulate markets and industries that are not rrelated