Xerox invented photocopying and for decades
flat out dominated the industry it had created.
But Xerox’s harrowing experience provides a
cautionary tale of what can happen when a
company – even a dominant market leader -
fails to adapt its changing marketing
environment.
Xerox has rethought,
redefined, and
reinvented itself. The
company now
―connects closely with
customers in a content
rich digital
marketplace.‖
Two disciplined methods
Marketing Intelligence: The systematic Collection and
analysis of publicly available information about
consumers, competitors and developments in the
marketing environment.
Marketing Research: The systematic Design,
collection, analysis and reporting of data relevant
to a specific marketing situation facing an
organization.
Marketing Environment?
The actors & forces outside marketing that affect
marketing management’s ability to build and
maintain successful relationships with target
customers.
Suppliers
Provide resources needed by the company to
produce its goods & services.
Treated as Partners in creating & Delivering
customers value.
Marketing Intermediaries
Firms that help
company to
promote, sell
and distribute
its goods to
final buyers.
Marketing Intermediaries
Resellers Physical
Distribution Firms
Marketing Service
Agencies
Financial Intermediaries
Competitors
To be successful,
a company must
provide greater
customers value
& satisfaction
that its
competitors do.
Publics
Any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives.
Financial Public
Media Public
Government Public
Citizen Action Public
General Public
Internal Public
CUSTOMERS
Consumer Markets
Business Markets
Resellers Markets
Government
Markets
International
Markets
Demographic Environment
The study of human populations in terms of size,
density, location, age, gender, race, occupation and
other statistics.
Demographic Environment
Increasing Population
―1 Bn population in Asia will move to cities in next 20
years.‖ Haruhiko Kuroda, President Asian Development
Bank.
Rapid growth in urban population in Asia
In India, urban population to rise to 523 million by
2025
Source: Marketing Whitebook 2007-08, Businessworld, p.84
Demographic Environment
Growing Middle class
McKinsey Global Institute (MGI) has divided the Indian
population into 5 economic classes
Division based on real annual disposable income
MGI division of Indian Population
Deprived households
have an annual disposable income of less than Rs
90,000. The poorest economic class
Mostly unskilled or semi‐skilled workers on daily wages
Aspirers
have an annual disposable income in the range of Rs
90,000 to Rs 200,000
Spend most of their income on basic necessities
Small‐time retailers, small farmers, etc.
MGI division of Indian Population
Seekers have an annual disposable income between Rs 200,000
and Rs 500,000.
Mostly white‐collar employees, mid‐level government officials, newly employed postgraduates, medium‐scale traders.
Strivers have an annual income ranging from Rs 500,000 to Rs
1,000,000. Have a stable income source and access to amenities
Mostly professionals such as lawyers, CAs, senior government officials, rich farmers
MGI division of Indian Population
Global Indians
have an annual disposable income in excess of Rs
1,000,000 Creamy layer in society
Globe‐trotters with a high standard of living
Demographic Environment
Growth in the rural population
A changing family system
The changing role of women
Increasing diversity
Economic Environment
Factors that affect consumer buying power and spending patterns.
Global Financial Crisis
Changing Income Distribution and consumer spending patterns.
Ernst Engel—Engel’s Law
As income rises: The percentage spent on food declines
The percentage spent on housing remains constant
The percentage spent on savings increases
Natural Environment
Involves the natural resources that are needed as
inputs by marketers or that are affected by
marketing activities.
Shortages of raw materials
Increased pollution
Increase government intervention
Environmentally sustainable strategies
Technological Environment
Robotic surgery
Miniature
Electronics
Laptops, Computers
and Internet
Credit Cards
Televisions
Automobile
Political Environment
Laws and Government agencies that influence and
limit various organizations and individual in a given
society.
Laws covering issues like
Competition
Fair Trade practices
Environmental Protection
Product Safety
Consumer Privacy etc.