Marketing Management MARKETING ENVIRONMENT Market

Transcript:Marketing Management MARKETING ENVIRONMENT Market:
Marketing Management MARKETING ENVIRONMENT Market and Environmental Analysis Introduction p. 03 The marketing environment consists of external factors and forces that directly and/or indirectly impact the organization to develop and maintain successful relationships with its target customers. There are two perspectives (sometimes three) namely: the macro-environment, the micro-environment, the internal environment. The external environment, which includes all the external factors—competitive, economic, political, legal/regulatory, technological, and sociocultural—that can exert considerable direct and indirect pressures on both domestic and international marketing activities. consists of the forces close to the company that affect its ability to serve its customers, e.g., the company, suppliers, marketing channel firms, customer markets, competitors and publics. p. 04 Introduction: Marketing Environment Micro- environment consists of the large societal forces that affect the micro-environment: Demographic environment, Economic environment, Natural environment, Technological environment, Political environment, and Cultural forces. Macro- environment The Organization Competitors Customers Suppliers Distributors Supply chain Demography Economic factor Natural force Technological change Cultural & Social Company’s Internal Environment p. 05 Marketing Environment Political issue Fig: Marketing Environment including micro, macro and internal environment All factors that are internal to the organization are known as the 'internal environment'. They are generally audited by applying the 'Five Ms' which are Men, Money, Machinery, Materials and Markets. The internal environment is as important for managing change as the external. The internal environment can be audited using other approaches such as SWOT Analysis, Michael Porter's Five Forces Analysis or PEST Analysis. p. 06 Internal environment Introduction: Marketing Environment Marketing Environment p. 07 With regard to the question of how the organization monitors the environment, there are two types of environments are: Dynamic environment Complex environment In a dynamic environment, organization is typically faced with major change in the areas of technology and markets, with the result that decisions can no longer be based upon the assumption, rather than that of scientific basis. The focus needs to be upon the future with a far greater degree of inspirational interpretation. Idea of alternative futures can then be used to identify the likely impact upon consumers, suppliers, competitors, government, the financial institutions, their probable responses. For organizations faced with a complex environment, many of the issues and problems to which reference has been made are exacerbated. Marketing analysis is based upon the answers to six questions: How complex is the environment? (Complexity is a measurement of the number of different environmental forces which have