Unit1 Sec3 MktgEnvironment,MIS2007
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Transcript of Unit1 Sec3 MktgEnvironment,MIS2007
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Marketing Management
Unit I Section3 Part 1MIS, Data Warehousing, Data Mining &
Marketing Environment
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What we will learn in thisSection
What are the components of a modern marketinginformation system?
What are useful internal records?
What is involved in a marketing intelligence system?
The need of environmental scanning. How external micro environment affects the companys
strategies.
The influence of external macro environment on
companys plans. The difference between the external macro and micro
environment.
The role of organizations internal environment in dealingwith opportunities and threats.
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Need for environmentalscanning
Identifying the opportunities that companyhas in immediate future.
Identifying the threats faced by the
company.
Demand forecasting
Developing appropriate business plans.
Adjusting the company strategy inchanging competitive environment.
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Marketing Environment
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Environmental Forces
Demographic
Economic
Socio-Cultural
Natural
Technological
Political-Legal
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Population and Demographics
Householdpatterns
Regionalcharacteristics
Movement
Growth rate Size
Age distribution
Ethnic mix Educational
levels
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Age Structure in India (Urban)
014years:30.8%(male173,478,760 /female163,852,827)
1564 years: 64.3% (male363,876,219/female 340,181,764)
65 years and over: 4.9% (male27,258,020/female 26,704,405)
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Geographic Redistribution
Geographical redistributionseparates differentgenerations in differentspace and time zones Increases gaps both within
and between generations
People living in different areasof the country reflectdifferent values, lifestyles,and attitudes Regional marketing responds
to and feeds the differencesby exposing newly arrivedresidents to regional tastes
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Economic Environment
Purchasing Power
IncomeDistribution
Savings Rate
Debt
Credit Availability
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Economic Forces
Stages in the Business Cycle
Prosperity Low unemployment and high total incomecreate high buying power
Recession Rising unemployment reduces total buyingpower; consumer and business spendingdecline
Depression Unemployment extremely high, wages andtotal disposable income are very low, andthere is a lack of consumer confidence
Recovery Economy is moving out of recession ordepression towards prosperity
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Economic Forces (contd)
Buying Power
Resources, such as money,goods, and services, that can betraded in an exchange
Income Disposable income (After Tax)
Discretionary income (Incomeavailable for spending or savingafter buying the basicnecessities)
Wealth
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Economic Forces (contd)
Willingness to Spend An inclination to buy because of expected
satisfaction from a product, influenced by theability to buy and the numerouspsychological and social forces
Expectations influencing the willingness tospend:
Future employment
Income levels
Prices
Family size
General economic conditions (e.g.,rising prices)
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The Increasing Middle Class & NeoRich
Four key implications:
An increasing range inprices of products
More customer militancy Affordability
The neo rich
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Improvement of Downtrodden
Two distinctimplications:
Segmented
markets Cultural
diversity
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Political Forces
Reasons for Maintaining Relations withElected Officials and Politicians
To influence the creation of laws andregulations affecting industries andspecific businesses
Governments are potentially largecustomers
Political officials can assist in securingforeign markets
Campaign contributions of corporate-related individuals and political actioncommittees may provide influence
Lobbyists work to communicatebusinesses concerns about issuesaffecting their industries and markets
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Legal and Regulatory Forces
Procompetitive Legislation Laws designed to:
preserve competition
prevent the restraint of trade and themonopolizing of markets
prevent illegal competitive tradepractices
Consumer Protection Legislation Laws enacted to protect customers from:
adulterated and mislabeled food and
drugs deceptive trade practices and the sale
of hazardous products
the invasion of personal privacy and themisuse of personal information byfirms
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Natural Environment
Shortage of rawmaterials
Increased energy costs
Global warming
Anti-pollution pressures
Governmental
protections
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Technological Environment
Pace of change
Opportunities forinnovation
Varying R&D budgets
Increased regulation ofchange
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Pace of Change
The time takento reach the same levelof penetration
Radio: 38 years
Telephone: 25 years Cable television: 10 years
Internet: Less than 5 years
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Did You Know this about USA?
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Digi Home
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Marriage Proposal
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Socio Cultural Environment
Effects of the workingwomen trend: A significant change in
the resources of a
household Time shortage: lack
of free time
Time shift: the timewhen nonwork-related activities
may be pursued A shift in the lifestyle of
families With both spouses
working,
households haveturned into
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E i i d R di t
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Examining and Responding tothe Marketing Environment
Environmental Scanning The process of collecting information about
forces in the marketing environment
Observation
Secondary sources Market research
Environmental Analysis The process of assessing and interpreting the
information gathered through environmental
scanning Accuracy
Consistency
Significance
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Examining and Responding to the
Marketing Environment (contd)Responding to Environmental Forces Reactive approach
Passive view of environment asuncontrollable
Current strategy is cautiouslyadjusted to accommodateenvironmental changes
Proactive approach
Actively attempts to shape and
influence environment
Strategies are constructed toovercome market challenges andtake advantage of opportunities
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What we learnt in this Unit What are the components of a modern marketing
information system?
What are useful internal records?
What is involved in a marketing intelligence system?
The need of environmental scanning.
How external micro environment affects the companysstrategies.
The influence of external macro environment oncompanys plans.
The difference between the external macro and microenvironment.
The role of organizations internal environment in dealingwith opportunities and threats