Unit 2 Marketing Process and Environment.pptx

7/25/2019 Unit 2 Marketing Process and Environment.pptx

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Unit 2

Marketing Process and

Environment


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Marketing Process:

It has two major dimension Targeting

customers and developing marketing mix.

Targeting Customers: Marketing process starts

by identifying the target customers. The

process begins by identifying the totalmarkets, dividing the total market in to market

segments, selecting the most profitable

segments, focusing and serving these segmentswith the well designed marketing mix.


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The marketing process is associated will these activities and

responsibilities of the marketer. It means the continuous flow

of goods from production point the consumption point.

According to Philip Kotler:

1. Analyzing marketing opportunities:

hange in technology, increasing consumer!s purchasing

power, social and cultural dynamism.

".Developing marketing strategies

The marketing managers need to develop the segmentation,

targeting and positioning strategies. #eveloping strategies for

competitive advantages.

$.Planning marketing programs

%.Managing the marketing efforts.


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Concentration: & 'n the basis of customerneeds and wants only the right product can be

created( )nalysis of marketing environment

)nalysis of marketing opportunities

Identification of target market Identification of customer needs and wants

*roduction of desired goods and services.


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Equalization: ()fter the suitableproducts are produced but before that are

distributed to the target market, the marketer

has to correctly examine whether the product

does match to the customer needs and wants.(

Matching product with needs and wants Matching supply with demand

#evelop a marketing program

*erform marketing activities


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Dispersion: ( )fter the desired goods and servicesare produced and information regarding the demand

position is analy+ed, the goods become ready for physicaldistribution(

Movement of goods and services from product centers to

consumption centers

Involvement of marketing intermediaries

*erform marketing activities

Transfer of ownership from seller to buyer

eed satisfaction

Feed Back: -ollowup

/valuation of markets

Marketing control


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Marketing MixProduct Price Promotion Place

0uality 1evel )dvertising #istribution channels

-eatures andbenefits

#iscounts *ersonalselling

#istributioncoverage

2tyle )llowances 2alespromotion

'utlet locations

3rand name *ayment terms *ublicity 2ales territories

*ackaging 4eturns Investorrelations

Inventory locations

5arranty Tradeshows Transportationcenters

2ervice level

2upportingservices


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Developing the MarketingMix

Marketing mix is the set of marketing tools to achieve theorganizational goals.

1. Product Mix: It includes decision relating to hat to o!er tothe target customers.

.

Product planning and development.Product line and product mix

.Product "ualit#

.$ariet#

.Design % size& looks& color& eight etc '

.(eatures % )okia o!ering di!erent com*ination of features.+randing % name& logo& color& slogan '

.Packaging and la*eling

.,arrant# & after sales service


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2. Place or distribution mix: Placedecision mainl# involve ho to

manage the -o of products fromthe factor# to the market.

hannel selection / channel

motivationhannel con-ict management

Ph#sical distri*ution % It involves

e0cient management oftransportation& arehousing&inventor# management& material

handling& order processing and


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1. Price mix: The price mix decisions includesanalysis of competitors prices, formulation of

pricing objectives, setting the base price anddetermining terms and conditions of sales etc.

ompetitors price analysis

*ricing objectives *rice setting

onditions of sales

#iscounts, allowances and commission


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. Promotion mix: 6ere identify and explain thekey activities conducted under the promotion mix of

marketing. )dvertising & Television, audio, video paper etc (

*ersonal selling & sales through sales persons (

2ales promotion & sample, premium, contests,

demonstration, coupons, special displays, price reductionon temporary basis (

*ublic relation & press, government, customers and

society (

#irect marketing & door to door selling, mailorder

marketing, telephone marketing, television marketing, on

line marketing, etc (


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Marketing Environment:

/nvironment consists of surroundings or forces influencing

growth or development. Marketing environment is the totalityof forces that effect on the marketing decision and the

attainment of the marketing goal. The marketing environment

is more important to management today than ever before. This

is both because the rate of environmental change has increase

and because there are more type of important environmental

changes. It is the source of not only challenges to the

management it is also the strong source of opportunities. )

marketer identifies business opportunities from among the

marketing environmental force. Marketing plans policies andstrategies are affected by the set of environmental forces

including both internal and external, the combination of these

forces is known as marketing environment.


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Internal Environment: It located ithin the organization

Production facilities: If the company is a producer, it must have ade7uate

production facilities on the basis of changing demand and need of customers. Financial capability: ) marketing company re7uires ade7uate finance to run

it smoothly.

Human resources: It consists of technical and nontechnical manpower. -or

smooth functioning of the company skilled manpower is re7uired.

Company location: 2uccess of a company, to a large extent, depends uponthe selection of a right or proper location.

R. And capability: *roducts once developed and introduced may not fulfill

the needs and wants of the target market.

Company image: ompan# image is the position of the

compan# in the market or the nature of market response.onsumer3s man# easil# accept the products of thosecompanies& hich have good image in the market.

'bjectives8 resources8 structure 8


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External Environment:

Micro:

!he Firm"s Market: It may be defined in as a place where

buyers and sellers meet, goods or services are offered for sale and

ownership of goods or services is transferred. & onsumer9s

market, Industrial market, ovt. or organi+ational market (

Producer # $uppliers: It consist of individuals or organi+ations

regularly supplying the products to the marketing organi+ation forreproduction or resale purpose. 2uccess of marketing

organi+ation depends upon the regular supply of goods and

services by the suppliers.

Marketing intermediaries: They are independent businessorgani+ations that help the flow of goods and services form the

producing point to the consumption point. They are resellers such

as agents, distributors, wholesalers, retailers or middleman.


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Macro:

%conomic en&ironment: )ccording to

economic law the marketing of a particular

product largely depends upon two factors

ability to the consumers to spend and their

willingness to spend. 'nce without othercannot fulfill the marketing objective. It

consists 1evel of income, Monetary and fiscal

policy. 1evel of employment, 4ate of inflation. /conomic conditions: *rosperity, 4ecession,

#epression, 4ecovery.


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Prosperity: #uring this period unemployment is low and

aggregate income is high. onsumers are generally willing

to spend and marketers take advantages.

Recession:#uring this unemployment and people!s incomefall. Many company!s cut down their workforce and many

business close down their operation. Many countries of the

world including ;2), 5estern /urope, and ulf countries

went into recession between "


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Demograpic environments:#emographic represents the statistical study of

human population and its distributioncharacteristics. It is an utmost important task for

the marketing executives to study about the

changing pattern of demography of the country.

It consists Total population and its growth and

structure of population distribution & like sex

wise distribution, )ge wise distribution, Marital

status, -ertility and mortality rate *opulationdensity, #istribution by education and 4eligious

structures etc (


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$ocio'Cultural en&ironment: ulture is the

means used in adjusting to the biological

environment, psychological, and historicalcomponents of human existence. ) society is a

group of people having distinct beliefs,

knowledge, costumes, habits, taste, values culture

and lifestyle. These socio cultural characteristics

differ from people to people and society to society.

Therefore their choice of goods and services also

differ from one another. It consists #emographicsof society, ultural value of society, onsumerism

&against and for of goods and services etc.(


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!echnological en&ironment: It is the knowledge and

procedures used in the conversion of resources to a

finished product. It is the practical application of

science, new or old to meet a need or solve a problem.

Political'(egal en&ironment: It is a broad term

covering the firms and institution by which the nation

is governed. It consists of an interaction set of laws,government agencies and pressure groups that

influence and constrain the conduct of various

organi+ations and individuals in the society, while

formulation a marketing plan and program a marketermust be able to analy+e all these political and legal

factors.


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)atural en&ironment: 4esources are not distributed by

nature in all the countries in the same ratio. 5hatever

resources are available, they cannot be used forever, because

they will be fully deployed after certain period. Therefore the

marketer needs to be aware of the conse7uences of non

availability of natural resources and the alternative solution to

the problems should be determined. & It consists increased

levels of environment pollution, overnment intervention inatural resources management, (

Competiti&e en&ironment: 2uccess in the market place is

dependent not only upon identifying and responding to

customer9s need but also upon the companies ability to ensurethat its response is judged by customers to be superior that of

the competitors.


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Factors affecting Marketing nvironment

/conomic dimensions of environment

2ocial dimensions or environment

*olitical environment 1egal regulatory environment

Technical environment


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Marketing Environment in !epal:

epal is a small landlocked 6imalayan country situated at the

heart of )sia. epal has a multiparty system. The nearest sea port

for entry and exit of epalese cargoes is alcutta port. epal hasbeen using hittagong port of 3angladesh for launching

international trade with rest of the world. The major

environmental forces that have greater impact on epalese market

and trade pattern may be economic environment, demographic,

political legal and technological etc.

epal is an agrarian country. ontribution of agriculture

sector to the country9s real #* and employment is high. -arming

is still highly labor intensive. 4ecently marketing opportunities for

services sectors like computer software, insurance, bankingeducation, hospitals and nursing homes haven been fostering

rapidly with bright future, /conomically, epal hopes from 5T'

regimes.


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The demographic character of epal shows that the market

structure of the country diverse in nature. *reviously, epal

was recogni+ed as the country peace but now it has been

converted into the politically disturbed country. *oliticaldisturbance in the country, /specially the Maoist problem, and

other parties of Terai and hilly has affected the permanency of

government which has adverse effect on the country9s business

and economic performance. /ffective rules and regulations

regarding marketing activities are lacking in epal.

1abor is comparatively cheap in epal. Industrial

development has not taken proper direction in epal so the use

of appropriate technology is not sufficient. )lmost all the

technologies are imitating. 4ecently information technologyhas been gaining momentum in the country in commercial

sector.


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6owever, for the last several yearsenvironmental degradation has been

alarmingly increased in the country due to theunplanned deforestation at faster pace,

exploitation of natural resources for business

purposes and over population especially in cityareas. The si+e of epalese market is small so

the domestic industries no enjoy cost and

value effectiveness. )s a result their

competitive power is weak compared to

foreign competitors.


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"igligts o# !epalese MarketingEnvironment:

epal is a small landlocked 6imalayan country situated

at the heart of )sia

earest sea port is alcutta

epal is a multy party system

;sing hittagong port of 3angladesh for internationaltrade

epal is an )grarian country

-arming is still highly labor intensive

4ecently Marketing opportunities are growing in

computer software, insurance, banking, education,

hospitals and nursing homes.


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epal hopes from 5T'

#emographic character of the country is diverse

in nature 'ur country is politically disturbed

/ffective marketing rules and regulations are

lacking in epal Industrial development has not taken proper

direction

4ural farming is still in traditional based

Informational technology has been gaining

momentum


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Affecting causes of )epalese marketing en&ironment

are as follo*s:

,esternization Ur*anization

4i*eralization

5lo*alization

(oreign Emplo#ment

Political insta*ilit#

orruption

Information communication 6echnolog# Pollution

,arming


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Important "uestions

7. ,hat are the ke# components ofmarketing process8 Explain.

2. Explain the term marketing mix and

descri*e its four components.1. De9ne marketing environment. Explain

the maor components of microenvironment of Marketing8

. ,h# the natural environment isimportant in )epalese marketing orld8

Documents

Unit 2 Marketing Process and Environment.pptx