reaction to the mkt environment
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8/8/2019 Reaction to the Mkt Environment
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Reactions to theReactions to the
marketing environmentmarketing environment
Introduction to Marketing
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CONTENTSCONTENTS
y INTRODUCTION
y MAIN SECTION
Reactions to: Micro environmental factors
PEST factors
SU
MMARYy CONCLUSION
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The Marketing environmentThe Marketing environment
y Marketers are responsible for identifying
significant market place changes and
challenges.
y More than any other group in the
company, they must be the trend trackers
and opportunity sectors.
y The study of the marketing environmentis initially important for any business.
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The components of the marketingThe components of the marketing
environment:environment:MACRO -ENVIRONMENT
ECONOMIC FORCES
POLITICAL &LEGAL FORCES
GLOBAL FORCESTECHNICAL
FOCES
SOCIOCULTURAL FORCES DEMOGRAPHIC
FORCES
MICRO- ENVIRONMENT
SUPPPLIERS
PUBLICS
DISTRIBUTORS
CUSTOMERS
COMPETITORS THE ORGANIZATION
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MIRCOENVIRONMENTMIRCOENVIRONMENT
y COMPANY: Marketing must considerother parts of the organization includingfinance, R&D, purchasing, operations and
accounting.y SUPPLIERS: Supply availability? Supply
cost? Supply shortage or
Partnership Relationship Management(PRM)
y DISTRIBUTORS: Effective partnerrelationship management (PRM) is
essential.
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MIRCOENVIRONMENT:MIRCOENVIRONMENT:
CUSTO
ME
RCUSTO
ME
Ry Marketers should study the difference of each customer market
y 5 types of markets that purchase a
company¶s goods andservices:1. Consumer markets
2. Business markets
3. Reseller markets
4. Institutional markets
5. Government markets
6. International markets
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MIRCOENVIRONMENT :MIRCOENVIRONMENT :
CompetitionCompetitiony SWOT analysis
y A marketer must monitor its
competitors· offerings to create strategic
advantage.
=> Company must gain
strategic advantage
against these
organisations.
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MIRCOENVIRONMENT: PublicsMIRCOENVIRONMENT: Publics
y has actual or potential interest in or impacton an organisation's ability to achieve itsgoals
y 7 publics include:a) Financial
b) Media
c) Government
d) Citizen-actione) Local
f) General
g) Internal
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MACROENVIRONMENTMACROENVIRONMENT
(PEST
factors)(PEST
factors)Political Environment
Economic Environment
Socio-cultural, (inc.Demographic)Environment
Technological Environment
>> PEST - simple view in the
macroenvironment.>> extended view: PESTL incorporating
Legal and Environmental factors
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MACROENVIRONMENT MACROENVIRONMENT (PEST factors)(PEST factors) ::
PPolitical factorsolitical factorsy Can create advantages & opportunities.
y Can place obligations and duties,conversely.
=> Marketers need to maintain goodrelations with elected political officials.
y Less likely to create laws unfavorable
y
Play key roles in helping organizationsecure in foreign markets
y are big buyers.
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MACROENVIRONMENTMACROENVIRONMENT (PEST factors)(PEST factors) ::
EE
conomical Factorsconomical Factorsy Are factors that affect consumer
purchasing power and spending patterns.
e.g. Inflation, Employment, Incomedistribution & changes in purchasingpower (disposable income)
has to be aware of economic conditions.
needs to ensure that it employsstrategies that protect and promote itsbusiness.
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MACROENVIRONMENTMACROENVIRONMENT (PEST factors)(PEST factors) ::
SS
ocioocio-- cultural Factorcultural Factory Are pressure originating from the social structure of a country or society from the national culture.
Demographics
Social mobility Lifestyle changes
Consumerism
Levels of education
The cultural environment=> Marketers have to be able to offer products and
services to complement and benefit people·s lifestyleand behavior
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MACROENVIRONMENT (Cont·d):MACROENVIRONMENT (Cont·d):
C
ultural forcesC
ultural forcesy Marketers create
link between brand
and charitable
organization
Demonstrates
social responsibility
Helps build positivebrand image
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MACROENVIRONMENTMACROENVIRONMENT (PEST factors):(PEST factors):
TTechnological Forcesechnological Forces
y Technological advances have greatly
changed the manner in which businesses
operate.
Fast pace of technological change
High R&D budgets
Concentration on minor improvements
Increased regulation
=>What should marketers react???
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MACROENVIRONMENT (Cont·d):MACROENVIRONMENT (Cont·d):
T
echnologyT
echnologyOrganizational
offerings
Micro-
envionment
factors
Internet
Marketing
The Marketing
Mix: 4, 6, 7s C
DISTRIBUTORS
COMPETITORS
SUPPLIERS
PUBLICS
Macro-
environment
factors
CUSTOMERS
TECHNOLOGYSOCIOCULTURAL
POLITICALECONOMIC
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MACROENVIRONMENT:MACROENVIRONMENT:
N
atural environmentN
atural environmenty People now concern more about the naturalenvironmental such as the world, air, waterpollution.
y
4 trends in the natural environment: Shortage of raw materials
Increased cost of energy
Increased pollution
Government intervention
E.g. Ben& Jerry·s and their
commitment on natural environment.
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OTHER CHANGES IN THE OTHER CHANGES IN THE
MARKETING ENVIRONMENTMARKETING ENVIRONMENTy FASHION
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RISING EXPECTATIONSRISING EXPECTATIONS
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GLOBALIZATIONGLOBALIZATION
y ´Thinking globally and acting globallyµ
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Other forces inOther forces in macroenvironmentmacroenvironment::
LLegal Forcesegal Forcesy are important as organizations have to
work within legislative frameworks.
y can hinder business by placing obligations
on organizations.
y legislation can create market conditions
that benefit business.
y e.g.:Contract law,Consumer protection,Competition,Trading policies
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SUMMARYSUMMARY
TO SEEK OPPORTUNITIESAND WARD OFFTHREADS:
y Establishing inter-organizational relationship.
y Representing and protecting the
organization.
y Scanning and monitoring the environment.
y Proactive vs. Reactive:´Smart marketing
managers will take a proactive rather thanreactive approach to the marketing
environmentµ (Kotler)
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BibliographyBibliography
y Kotler, Philip, Armstrong,Gary, Saunders, John,Wong,Veronica. (2002) Principle of Marketing
y Doyle, Peter (ed.) (2002) MarketingManagement and Strategy, London,Pearson Education Limited.
y http://www.learnmarketing.net/pestanalysi
s.htmy http://www.oup.com/uk/orc/bin/97801992
65855/gay_ch01.pdf
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Sources of picturesSources of pictures
y http://im.rediff.com/getahead/2007/jan/02jewellery.jpg
y http://www.greatinteriordesign.com/wp-content/uploads/2009/07/zalf-teen-room-furniture-design-in-green.jpg
y http://www.cartoonstock.com/lowres/ptr0142l.jpg
y http://www.cartoonstock.com/lowres/cgr0034l.jpgy http://mikebm.files.wordpress.com/2008/07/beat-
competition.jpg
y http://www.istockphoto.com/file_thumbview_approve/3972423/2/istockphoto_3972423-business-competition.jpg
y
http://www.freakingnews.com/pictures/49500/Globalization--49705.jpg
y http://www.nazarenecompassion.org/Portals/4/WesleyPracticeFiles/moneytree_funddevelopment.jpg
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