ANALYZING THE MARKETING ENVIRONMENT

SUMMARY:

Example of Xerox company that how it changes its old image of the The Copier Company to respond to the marketing environment and become The Worlds leading document management technology and devices enterprise after a major loss. Definition of marketing environment that it is consists of the actors and forces outside the marketing that affect marketing managements ability to build and maintain successful relationships with target customers. It is made up of microenvironment and macro environment. The micro environment includes all the actors close to be company that positively or negatively that affect its ability to create value for relationships with its customers. The macro environment includes the broader forces that affect the actors in the microenvironment.
MICRO ENVIRONMENT ACTOR

1. The company: Marketers must works in harmony with the company departments to create customers value and relationships. 2. Suppliers: They provide the resources needed by the company to produce its good and services. Suppliers problems seriously damage value delivery network. 3. Marketing Intermediaries: marketers must partner with other companys value delivery network. 4. Competitors: Company must provide greater customer value and satisfaction than its competitors. 5. Publics: Any group that has an actual or potential interest in or impact on an organizations ability to achieve its objectives. 6. Customers: They are the most important actors in the companys microenvironment. The aim of the entire VDS is to 4 serve target customers create strong relationship with them.
MACRO ENVIRONMENT MAJOR FORCES

1. Demographic environment: Due to the changes in demographics(Increasing population growing middleclass, deprived households, aspirers, seekers, strivers, global Indians), change family system, changing role of women has brow changes in markets which in turn require change marketing strategy. 2. Economic environment: The economic shocks like THE GLOBAL FINANCIAL CRISES shattered the world in 2007-2009. Is one of the factors that affect consumer buying power and spending partners as it offers both opportunities and threats? 3. Natural environment: Natural resources that are needed as inputs by marketers or that are affected by marketing activities.

4. Technological environment: It includes the forces that create new technologies, creating new products and market opportunities. 5. Political environment: Laws, government, agencies and pressure groups that influence and limit various organizations and individuals in a given society legislations(e.g. MRTP), boundary and social responsible actions now create a new political environment. 6. Cultural environment: Cultural factors strongly affect how people think and how they consume. Peoples views of themselves, of Others, of organizations, of nature, of society and shift in secondary values and their persistency in core values affects societys basic values, perceptions, preference and behaviors. Marketers interested in cultural environment.

RESPONDING TO THE MARKETING ENVIRONMENT:

There are three types of companies. 1. Innovators: They are proactive, they influence choices, and they are very anticipating. They Predicts what will happened and instead to wait for things to happen they try to shape the future. For this they lobby and they invest on research and development. They also influence the formations of governments, they finance the political parties to make legislation or take steps which are helpful for them, the innovators. 2. Followers: they see what kind of change has taken place; they quickly adapt it with very low response time and respond to the new situation. 3. Laggards (Late Majority): they one traditionalists, they resist the change as much as possible.