Unit 1.2 Marketing Environment: Dr. Atul Fegade

Unit 1.
2
Marketing Environment
Dr. Atul Fegade
Outline
• Components of Modern Marketing Information System
• Analysing the Macro Environmental Factors
• PESTEL and SWOT: an introduction
• Market Demand, Market Potential, Sales Potential and Market
share
Components of Modern Marketing
Information System
• Information needs:
• What decisions do you regularly make? & What information do you
need to make these decisions?
• What information do you regularly get?
• New Information?? Frequency of information ??
• Online or offline sources?? Type of analysis?
• Improvements in present marketing information system.
Components of Modern Marketing
Information System
• A marketing information system (MIS) consists of people, equipment, and
procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and
accurate information to marketing decision makers.
• An internal records system,
• The order to payment cycle, Sales Information System, Databases, Data Warehousing, and
Data Mining
• A marketing intelligence system,
• The Marketing Intelligence System, Collecting Marketing Intelligence on the Internet,
Communicating and acting on marketing intelligence
• A marketing research system.
• Problem Identification – Research Plan - Collecting Data – Analysing the data – Presenting the
findings – Make the Decision
Why Market Leaders Suffered?
5
Marketing Environment
• Outside forces that affect marketing management’s ability to
build and maintain successful relationships with target
customers
• Microenvironment: Actors close to the company that affect its
ability to serve its customers
• Macroenvironment: Larger societal forces that affect the
microenvironment
The Company’s Macro environment
9
The Demographic Environment
• E.g. China’s policy to control population growth.
• Keeping track of changing age, family structures, geographic
population shifts, educational characteristics, & population density.
• Population Growth
• World wide population estimation 9 billion by 2045.
• Less developed regions account for 76% of population.
• More developed countries growing at 0.6%
• India 16.7% of world population.
• Population size & growth rate.
10
The Demographic Environment
• Population age mix
• Literacy levels of Population (Educational Groups)
• A growing middle class (Household Pattern)
• Growth in rural population
• A changing family system
• The changing role of women
• Inner state diversity in India
11
The Economic Environment
• Economic status of India
• Is there a financial crisis in waiting??
• Consumer Psychology
• Inflation, recession, impact on very poor and very rich.
• Income Distribution
• Economies - Subsistence, raw-material-exporting, industrializing, industrial
• Very low incomes, mostly low incomes, very low – very high, low – medium – high, mostly
medium incomes
• Income levels and consumption pattern
• Debt to income ratio
The Socio-cultural Environment
• Views of ourselves – aspiring for better lives, pleasure seeker, fun, change
• Views of others – concern for others, networking
• Views of organizations – job security, organisational loyalty
• Views of society – preservers, makers, takers, changers, seekers, escapers
etc.
• Views of nature – protection, worship, living in harmony
• Views of the universe – Peaceful co-existence, religious
• High persistence of cultural values – Core, secondary beliefs & Values
• Existence of sub culture
The Natural Environment
• Concentration of industries in one area threatening to natural
environment.
• Deterioration of natural environment – shortage of raw materials.
• Increased pollution.
• Increased Govt. Interventions - New regulations, environment protection
agency, NGOs etc.
• Environment Sustainability
• Developing recyclable & biodegradable packaging, recycled materials &
components, better pollution controls, & more energy efficient operations.
The Technological Environment
• Contraceptive tools – higher spending on travel, durable goods
and luxury items.
• Cell Phones – Traditional media
• Accelerating pace of change

• Unlimited Opportunities for innovation
• Varying R & D budgets
• Increased regulation of technological change.
The Political-Legal Environment
• Laws, government agencies, & pressure groups.
• Increase in Business Legislation
• To protect companies & consumers from unfair competition, to protect society
from unfair activities, to charge business with social costs.
• The growth of special interest groups

• Consumerist movement
• Increased Emphasis on Ethics & Socially Responsible Actions

• Cause Related Marketing
PESTEL Analysis
SWOT Analysis
• Strengths
• Weakness
• Opportunities
Threats
SWOT Analysis
Market Demand, Market Potential,
Sales Potential, Market Share
• Market Demand
• Total volume that would be bought by a defined customer group in
a defined geographical area in a defined time period in a defined
marketing environment under a defined marketing program.
• Market Potential
• The limit approached by market demand as industry marketing
expenditures approach infinity for a given marketing environment.
• Total market potential = Potential number of buyers x Average
quantity purchased by a buyer x The price
Market Demand, Market Potential,
Sales Potential, Market Share
• Sales Potential
• The sales limit approached by company demand as company
marketing effort increases relative to that of competitors.
• Sales potential < Market potential
• Market Share
• The portion or percentage of sales of a particular product or
service in a given region that are controlled by a company

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Unit 1.

• Accelerating pace of change

• The growth of special interest groups

• Increased Emphasis on Ethics & Socially Responsible Actions

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