MARKETING ENVIRONMENT (Micro and Macro)

Organization under systems approach A system is a set of objects ,elements or components that are inter-related and interact with one another A system consists of inputs ,processor,outputs and feedback. A system is goal oriented and aims to achieve certain objectives. It has its own environment It draws inputs from its environment .It offers outputs in the form of products ,services ,information and idea to satisfy environment demands .

ORGANIZATION AS AN OPEN ADAPTIVE SYSTEM

EXTERNAL ENVIRONMENT UNCONTROLLABLE FACTORS

INPUTS

PROCESSOR

OUTPUTS

OBJECTIVE

RESOURCES

ORGANIZATION

GOODS / SERVICES

PRODUCTIVITY

THE CONTROLLER FEEDBACK LOOP (MANAGEMENT)

FEEDBACK LOOP

MARKETING ENVIRONMENT
The internal and external influences which affect the marketing decision making and have an impact on its performance is called marketing environment.

demography Customer needs & desires

competition

Science & Technology

P r Physical CUSTOMER product O Distribution MARKET D Promotion 1.Personal Selling 2. Advertising U 3. Sales Promotion C t Economic Legal and Political Condition Condition

pricing

Social & Cultural Climate Ecological Environment

Marketing Management Framework

MACRO ENVIRONMENT (External , Uncontrollable )

1. Demography

2. Economic Environment
3. Social and Cultural environment 4. Political and Legal force 5. Science and Technology 6. Competition

7. Ecology(Nature)
8. International environment 9. Customer Demand

MICRO-ENVIRONMENT (Internal Controllable Factor)

1. Organization 2. Corporate resources 3. Marketing Mix 4. Markets 5. Supplies 6. Market intermediaries 7. Employees

INDIAN MARKETING ENVIRONMENT

Problems : 1. Over population 2. Low Production 3. Capital Formation 4. Effective Distribution System 5. Consumption Pattern

MARKETING MIX
A successful marketing strategy must have a marketing mix as well as a target market for whom the marketing mix is prepared . The elements or variables that make up a marketing mix are only four 1. Decisions on product or service 2. Decisions on price 3. Decision on Promotion, and 4. Decision on distribution

Marketing mix decisions constitute a large part of marketing management .

Marketing manager is a mixer of all marketing ingredients and he creates a mix of all the marketing elements and resources to achieve the company goals such as profit, return on investment , sales volume , Market share and so on . In the simplest manner, the basic marketing mix is the blending of four inputs or sub mixes which form the core of the marketing system 1. Product Mix 2. Price Mix 3. Place Mix (Distribution) 4. Promotion Mix

ELEMENTS OF MARKETING MIX

Product Mix 1.Brand 2.Style 3.Colour 4.Design 5.Package, 6.Warranty 7.service

Marketing Strategy Marketing Mix Focused on Target market

Price Mix 1.Pricing strategy 2.Pricing policy 3.Basic price 4.Terms of credit 5. Discounts 6.allowances

Place Mix Promotion Mix 1.Personal selling 2.Advertising 3. Publicity 4.Sales promotion Distribution channels WS Retailers Physical distribution Transport warehousing

Four more Ps are now added to enlarge the horizon of marketing . They are 1. Packaging 2. Processes and 3. People 4. Physical evidence 1. PACKAGING: Packaging of consumer goods play an important role in marketing plan . Advantages of packaging

1. It protects goods against possible damages 2. Proper packages enable uniformity in the size of goods 3. Brands are usually promoted through good packaging 4. Packaged goods can be handled easily.

2. PROCESS: Process refers to the system by which the customer receives delivery of the services Ex: In fast food restaurant the process consists of buying coupons in one counter and packaging the foods against coupons at another counter .
Following are the steps involved in process: 1.Identify the steps involved in delivering the service to the customer 2.Arrange the steps in the most logical and proper sequence 3.Minimize the customers contact in the process 4.Using the automation to speed up the delivery

3. PEOPLE: Person rendering service play vital role in the marketing of services .Persons involved in the process should ensure complete consumer satisfaction . Wherever possible automation and computerization should be used to reduce the need for personal contact. Careful selection and training ,neat and consistent appearance of service personnel are necessary . 4. PHYSICAL EVIDENCE: Tangible elements in a service play a significant role in influencing the image of the service in the minds of the customer Coca-cola considers marketing mix as the artistic balance of seven ingredients 1.Product, 2.Price, 3. Promotion, 4.Place, 5.Potential, 6.Penetration, and 7. Profit.

MARKET SEGMENTATION
The economic theory of pure competition assumes that all buyers are alike and consumer behavior is unidimensional based on the concept of economic man model. The behavioral sciences on the other hand ,have developed the multidimensional concept of buyer behavior and indicated that all buyers are different. Marketers recognize the importance of heterogeneous demand .Hence, they are keenly interested in subdividing or segmenting the market.

Within the framework of imperfect competition we have two types of marketing strategies.
1. Product Differentiation 2. Market Segmentation Market Segmentation Segmentation or division of the market of the market is based upon the modern marketing concept. segmentation implies bending of supply to the will of demand as far as feasible and desirable . MS- is the strategy of divide and conquer The segmentation enables the enterprise to follow differentiated marketing

Marketer has three strategic options:

1. Concentrated Marketing

2. Differentiated Marketing
3. Undifferentiated Marketing

Conditions essential for successful MS are: 1. Measurability

2. Accessibility 3. Market Responsiveness 4. market Demand

BASES FOR MARKET SEGMENTATION

1. People-Oriented Approach

1. Geographic Location & Mobility

2. Demographic and Socio-Economic Characteristics a. Gender and Age b. Family Life Cycle c. Social Class d. Religion ,Race and Culture

3. Psychographic & Socio Economic Characteristics a. Personality b. Life Styles

2. Product - Oriented Approach 1. Use Pattern 2. Benefits Pattern 3. Brand / Store Loyalty