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ppt of markt envionment
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INTRODUCTION TO MARKETING
SOCIAL DEFINITION
A societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others.
MANAGEMENT DEFINITION
It is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals.
MARKETING ENVIRONMENT
The market environment is a marketing term and refers to all of the forces outside of marketing that affect marketing management’s ability to build and maintain successful relationships with target customers. The market environment consists of both the macro environment and the microenvironment.
MICRO ENVIRONMENT
The microenvironment refers to the forces that are close to the company and affect its ability to serve its customers.
The company aspect of microenvironment refers to the internal environment of the company. This includes all departments, such as management, finance, research and development, purchasing, operations and accounting. Each of these departments has an impact on marketing decisions.
MACRO ENVIRONMENT
The macroenvironment refers to all forces that are part of the larger society and affect the microenvironment.
It includes concepts such as demography, economy, natural forces, technology, politics, and culture.
FIVE STAGES OF MARKETING ENVIRONMENT ANALYSIS
Audit of environmental influences
Assessment of the nature of the environment
Identification of the key environmental forces
Identification of the principal opportunities and threats
Strategic position
NATURE OF MARKETING ENVIRONMENT
The marketing environment has been defined in a variety of ways. According to Philip kotler, the company’s marketing environment is made up of the sectors and forces outside the firm’s marketing function which infringe upon the ability of marketing management to develop and maintain a successful relationship with the firm’s target audience . Within the environment there are two distinct components: the micro and macro environment .
This is explain in the adjoining diagram:
Economic factors
Technological Factors
Political
Factors
Legal Factors
Demographic Factors
Cultural Factors
Social Factor
sDistribut
or
Consumer
Supplier
Competitors
Marketer
Market environment consist of all factors that in one way or another affect or affected by the organization decision
FACTORS EFFECTING MARKETING ENVIRONMENT ARE :
Internal Environment (Micro Environment)
External Environment (Macro Environment)
INTERNAL ENVIRONMENT
The microenvironment refers to the forces that are close to the company and affect its ability to serve its customers. It includes the company itself, its suppliers, marketing intermediaries, customer markets, competitors, and publics.
COMPONENTS OF INTERNAL ENVIRONMENT:
The Company Suppliers Marketing Intermediaries Customers Competitors Public
FACTORS AFFECTING INTERNAL ENVIRONMENT
It Includes 5 (M’s) Management Manpower Machine Material Money
EXTERNAL ENVIRONMENT
The macro environment refers to all forces that are part of the larger society and affect the microenvironment. It includes concepts such as demography, economy, natural forces, technology, politics, and culture.
COMPONENTS OF EXTERNAL ENVIRONMENT:
• Technology Environment• Socio-Cultural Environment• Economic Environment• Political Environment• Natural Environment• Demographic Environment• Legal Environment• Government Policies
FACTORS AFFECTING EXTERNAL ENVIRONMENT
External Factors affect the organization indirectly
Political Environment Social-Culture Ecological Legal
THE MARKETING ENVIRONMENT AND COMPETITOR ANALYSIS
SWOT analysis PEST analysis
SWOT ANALYSIS
Strengths (internal) Weaknesses (internal) Opportunities (external) Threats (external)
THE PURPOSE OF SWOT ANALYSIS
It is an easy-to-use tool for developing an overview of a company’s strategic situation It forms a basis for matching your
company’s strategy to its situation
STRATEGY FORMULATION
SWOT SWOT Analysis
Identifies Organization’s Strengths, Weaknesses, Opportunities, and Threats
Core Competency A special strength that gives an organization a competitive
advantage
PEST ANALYSIS
Political factors Economic factors Socio-cultural factors Technological factors
POLITICAL/LEGAL
Monopolies legislation Environmental protection laws Taxation policy Employment laws Government policy Legislation Others?
ECONOMIC FACTORS
Inflation Employment Disposable income Business cycles Energy availability and cost Others?
SOCIOCULTURAL FACTORS
Demographics Distribution of income Social mobility Lifestyle changes Consumerism Levels of education Others?
TECHNOLOGICAL
New discoveries and innovations
Speed of technology transfer Rates of obsolescence Internet Information technology Others?
CONCLUSION