LOOKING AT THE WOODS: MACRO ENVIRONMENT &
ANALYSIS- I
IMT-N-I-12-MM1
Marketing Management 1
Session XI
Learning Objectives
Opportunity Analysis
1. Environmental Forces
1. Marketing Environment
1. Micro Environment
2. Macro Environment
2. Marketing Information System
1. Components of Marketing Information System
3. Key Methods: Tracking & Identifying Opportunities
2
Marketing Environment
Internal Environment
Micro Environment
Task Environment
External Environment
Macro Environment
Broad Environment
Company & Employees Financers & Bankers Research & Development Material Suppliers Service Suppliers Channel Partners Consumers
Political-Legal Envt. Economic Envt Socio-Cultural Envt. Technological Envt. Demographic Envt. Natural Envt.
Mega Environment
Marketing Environment
Micro Environment
Forces Close to Company
Macro Environment
Larger Societal Forces
Company Suppliers Intermediaries Customers Competitors Publics
Financial Media Government Local
Political-Legal Economic Socio-Cultural Technological Demographic Natural
Micro Environmental Forces
Company Employees, Departments, TLM, Strategies
Suppliers Material/ Service suppliers, Costs & Timely supplies
Intermediaries Promote, sell & distribute products
Customers Consumer, Business, Reseller, Government, International
Competitors Competition, Competitive advantage, Winning strategies
Publics Financial bodies, Media, Government, Local, NGO’s
Macro Environmental Forces
Demographic
EconomicPolitical-Legal
Socio-CulturalTechnological
Natural
Demographic Environment
Population growth India has 17% of world population & 2.4% of area 1/3rd of villages have no shops
Population age mix Nation of youngsters- 24 yrs average age
Educational groups 65% Literacy
Household patterns Shifts to nuclear family, Working couples
Geographical shifts Migrations, repatriation
Economic Environment
Income Distribution Savings, Debt and Credit
Levi’s has responded to changes in income distribution by offering an upscale line and a mass market line
Socio Cultural Environment
Persistent cultural Values Core beliefs, values & customs
○ Individualism Vs Collectivism○ Views on family, religion & caste
Cultural Shifts Secondary cultural values
○ Changes in income & consumption From Earn now -spend later To Earn now- spend now
○ Changes in worldview
Natural Environment
Shortage of raw materials
Increasedenergy costs
Anti-pollutionpressures
Governmentinitiatives
Technological Environment
Pace of changeRate of adoption fastest
Moore’s law
Opportunities for innovationPeople open to changes
Global R&D for innovations
Increased regulationof change
TM, Patents, drug trials
Political-Legal Environment
Increase in business legislation
Growth of specialinterest groups
Trends Shaping the Business Landscape
Macro economic Trends Profound shifts in centers of economic activity Increases in public-sector activity Change in consumer landscape
Social & Envtl. Trends Technological connectivity Scarcity of well-trained talent Increase in demand for natural resources Increase in scrutiny of big business practices
Business & Industry Trends Emergence of new global
industry structures Ubiquitous access to information `Management shifts from art to
science
Fad, Trend, Mega trend
“Ten trends to watch in 2006” McKinsey Quarterly Jan.2006
Marketing Information system
External data
Internal data
Requested information
Marketing Research
division
MarketingInformation
system
Marketing Managers
Division
Marketing Plan Assignment Individual Submission
Due on 15th session- August 22nd -23rd Handwritten, 2500 words- 10 pages maximum Broad openings:
○ Executive Summary○ Situation Analysis (5 C’s)○ Marketing Strategy (STP)○ Objectives & Projections○ Tactical plans (4 P’s)○ Implementation & Control
About any product- existing or new Write a marketing plan
Observe trends in last one year Make projections for next one year Make use of tools covered
Leads Sttgy slide + Tivo case + Ppts at handout folder + ‘Mithila food’ exhibit chapter 2