MARKETING ENVIRONMENT OF

PRODUCT

Business Strategic-Planning Process

External environment

(Opportunity &

Threat analysis)

Internal Environment

(Strength/ Weakness analysis)

Goal FormulationBusiness Mission

Strategy FormulationEnvironmental Analysis

Internal AnalysisCompetitorCustomerSupplier

RegulatorySocial/ Political

Technology Know-HowManufacturing Know-How

Marketing Know-HowDistribution Know-How

Logistics

Strength & Weaknesses

Identity Core Competencies

Opportunities & Threats

Identify opportunity

Fit internal Competencies with external opportunities

Firm Strategies

Why a product like radio declined and now once

again emerging as an entertainment medium ?

What Were the Drivers of This Change ?

• Technology ?

• Government policy ?

• Other media substitutes ?

Why Market Leaders Suffered ?

HMT vs. Titan

HLL vs. Nirma

Bajaj vs. Honda

Dot. com boom, then bust and now resurgence

Market leadership today cannot be taken for granted. New and more efficient companies are able to upstage leaders in a much shorter period.

Factors Influencin

g Company’

s Marketing Strategy

Factors Influencin

g Company’

s Marketing Strategy

The macro-environmentThe macro-environment

•is the assessment of the external forces that act upon the firm and its customers, that create threats & opportunities

Marketing Environment

The actors and forces outside marketing that affect marketing management ability to develop and successful transactions with its target customers.

Types of Marketing environment• Micro environment• Macro environment

Micro EnvironmentCompany :- Its internal environment functional areas such as

top management, finance and manufacturing etc.

Supplier :- Suppliers are firms and individuals that provide

the resources needed by the company to

produce its goods and services .Intermediaries:- Marketing intermediaries help the company promote,

sell, and distribute its goods to the final buyers.

Micro Environment

Public :- Any group that perceives itself having an interest in

a company ability to achieve its objectives.Competitors :- Those who serve a target market with simillar

product and services.Customer :- They purchases goods and services .

Macro EnvironmentThe macro environment consist of broader forces

that not only affect the company and the industry but also other actors in the microenvironment.

Demographic Environment

Demography is the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics.

Why its information useful for business:-

To know consumer capacity. Identify Focus area. To know Human resources.

Natural Environment

The natural environment consists of natural resources required by marketers or affected by marketing activities.

Why its information is useful for business:-

Identify and forecasting natural based business. To know raw material capacity. To know supplier.

Political Environment

The political environment is made up of laws, government agencies, and pressure groups that and limit the activities of various organizations and individuals in society.

Why its information useful for business:-• To know Govt. business behaviour.• To know policy / rules of business.• To know security for new form as well as old

form.

Cultural Environment

The cultural environment includes institutions and other forces that affect society’s basic values, perceptions, preferences, and behaviors.

Why its information is useful for business:- • To know lifestyle of people.• To know changing structure of family.• Fashion awareness.

Economical environment

The economic environment consists of factors that affect consumer purchasing power and spending patterns.

Why its information is useful for business:-

In price making .To know spending capacity .To help future expenses Income of people. Identity target customer according to economical level.

Technological Environment

Information technology has made it possible to plan truly global supply chains.

Why its information is useful for business:- To make product and services on based of new

technology. To counter inflation and recession. To enhance personal efficiency and

effectiveness of business. Affective promotion.