Marketing Envr

8/8/2019 Marketing Envr

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MarketingEnvironment


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GROUP MEMBERS REHAN SIDDIQUI 1350

SMITA SONAWANE 1352 GAURAV WALAVALKAR 1360

MAHESH VANJARI 1358

SHAILENDRA UPADHYAY 1356 HARDIK TRIVEDI 1354


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Marketing Environment The factors and forces that affect marketing

managements ability to develop and maintainsuccessful transactions and relationships with itstarget customers.

1. Micro Environment

2. Macro EnvironmentEnvironmental Monitoring

Environmental ScanningThe process of

(1) Gathering information regarding companysenvironments.

(2) analyzing it

(3) forecasting the impact of whatever trends the analysis

suggests.


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The Companys Microenvironment

The forces close to the company that affect its abilityto serve its customers - the company, market channel

firms, customer markets, competitors and publics,

which combine to make up the firms value delivery

system.


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I. The Company

In designing marketing plans, marketing managementmust take other company groups, such as top

management, finance, research and development

(R&D), purchasing, manufacturing and accounting, into

consideration.

II. Suppliers

Firms and individuals that provide the resourcesneeded by the company and its competitors to

produce goods and services. MMs must watch

supply availability, shortage or delays, labor strikes,

price trends etc.


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III. Marketing Intermediaries

Firms that help the company to promote, sell anddistribute its goods to final buyer; they include

Resellers,

Physical distribution firms,

Marketing-service agencies Financial intermediaries.

IV. Customer/ Markets The company must study its customer/ markets closely,

keep up to date with changing customer requirementsand satisfy their needs, wants according to theirpurchasing power

Consumer Market, Business Market, Government,International Market etc.


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V. Competitors

The marketing concept states that, to besuccessful, a company must providegreater customer value an satisfactionthan its competitors. Thus, marketers

must do more than simply adapt to theneeds of target consumers.

They must also gain strategic advantage

by positioning their offerings stronglyagainst competitors offerings in theminds of consumers. They must strive toanticipate competitor activity and

strategy.


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VI. Publics

Any group that has an actual or potentialinterest in or impact on an organizations abilityto achieve its objectives.

a) Financial publics influence the companys ability toobtain funds. Banks, investment houses andstockholders are the principal financial publics.

b) Media publics are those that carry news, features andeditorial opinion. They include newspapers, magazines

and radio and television stations.c) Government publics Management must take

government developments into account. Marketersmust often consult the companys lawyers on issues ofproduct safety, truth in advertising and other matters.


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d) Citizen action publics A companys marketing decisions

may be questioned by consumer organizations,environmental groups, minority groups and otherpressure groups.

e) Local publics Every company has local publics, such asneighborhood residents and community organizations.

f) General public A company needs to be concerned aboutthe general publics attitude towards its products andactivities. The public image of the company affects itsbuying.

g) Internal publics A companys internal publics include its

workers, managers, volunteers and the board ofdirectors.


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Demographic Environment

The study of human population in terms of size,density, location, gender, race, occupation,

education etc.

Trends of interest: World population growth

Increased diversity

Changing age structures

Changing households

Higher education

Geographic shifts


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Economic environment

Factors that affect consumer buying powerand spending patterns

Trends of interest:

Changes in income, continued spending by

consumers

Consumer debt levels rising, savings down

Changing spending patterns

Stage of Business Cycle (prosperity, recession,depression and recovery)

Inflation


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Natural environment

Natural resources that are needed as

inputs by marketers or that are effected by

marketing activities.

Increased energy costs

Anti-pollution pressures

Changing role of governments

Growing shortages of raw materials


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Technological environment:

New technology creates new markets andopportunities

Replaces existing products and services

Research and development activity drives this

sector

Political environment Laws, government agencies, and pressure groups

Monetary and fiscal policies Social legislation & regulation

Business legislation is used to protect consumers,

businesses, and the interests of society


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Social & Cultural environment:

Institutions and other forces that influencesocietys basic values, perceptions,

preferences, and behaviors

Three Aspects of social environment Changes in our lifestyles & social values

Major social problems

Growing Consumerism


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A Case Study on

Marketing Environment


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FIRSTTransforming Travel

UKs largest transportation company.

Revenues of over 5 billions a year.

Employs over 135000 staff throughout UKand North America and moves over 2.5

billion passengers a year.


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Facts

First is the largest UK rail operator carrying

almost 270 million passengers every year.

Britains largest local bus operator with nearly9000 buses carrying around 3 million

passengers a day.

In North America, First is largest provider of

student transportation carrying 3 million students

every day

It is the leader in providing reliable, safe,

innovative and sustainable transport services.


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PESTEL analysis byF

IRST Political

Privatization of bus services leading to competition

resulting in low cost.

Economic

Respond to changes in demand from customers for

example First has responded to increased demand inthe Neath valley in Wales by working closely with theNeath port TALBOT council to run improved services

Congestion charges


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Social and Technological Factors

Social

Convenience and safety

Green consumers

Technological

Lower floor for easy entry

Smart cards

Infrastructure


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Environmental and Legal Factors

Environmental

Climate change strategy

Kyoto Protocol

Legal

Carbon credits


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CONCLUSION

It is possible to see PESTEL factors as threats.

However, First prefers to see them as opportunities.

Social trends are creating increasing numbers of older

passengers seeking comfortable easy-to accessbuses. Many people are seeking a greener form of

transport. A detailed PESTEL analysis helps First to

make appropriate plans to rise to the challenges of a

changing environment.FIRST is able to move forward with confidence and

grow its business.

Marketing Envr

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