Unit 2. MarketingEnvironment
Unit 2. Marketing Environment
MarketingEnvironmentMarketing Environment- consists of theactors and forces outside marketing thataffect marketing management's ability todevelop and maintain successfulrelationships with its target customersIncludes:Microenvironment -forces close to the companythat affect its ability to serve its customers.Macroenvironment -larger societal forces thataffectthemicroenvironment
2 Marketing Environment ◼ Marketing Environment- consists of the actors and forces outside marketing that affect marketing management’s ability to develop and maintain successful relationships with its target customers. ◼ Includes: • Microenvironment - forces close to the company that affect its ability to serve its customers. • Macroenvironment - larger societal forces that affect the microenvironment
The Company's Microenvironment(SeeP19)Company'sInternal Environment-functionalareas inside a company that have an impactonthe marketing department's plansSuppliers-provide the resources needed toproducegoodsand services and areanimportant link in the"value deliverysystem".Marketing Intermediaries-help thecompany to promote,sell,and distribute itsgoods to final buyers. i.e. resellers
3 The Company’s Microenvironment （See P19） ◼ Company’s Internal Environment- functional areas inside a company that have an impact on the marketing department’s plans. ◼ Suppliers - provide the resources needed to produce goods and services and are an important link in the “value delivery system”. ◼ Marketing Intermediaries - help the company to promote, sell, and distribute its goods to final buyers. i.e. resellers
The Company'sMicroenvironment(SeeP19-20)Company'sInternal Environment-functionalareas inside a company thathave an impacton the marketing department's plansCompany's Micro-environmentMarketing management has the task of attractingand building relationships with customers bycreating customer value and satisfaction.However,marketing management does not accomplish thistask alone.Its success will depend on other actorsin the organization's micro-environment-otherdepartments,suppliers,marketingintermediaries,customers,competitors and various publics4
4 The Company’s Microenvironment (See P19-20) ◼ Company’s Internal Environment- functional areas inside a company that have an impact on the marketing department’s plans. ◼ Company’s Micro-environment ◼ Marketing management has the task of attracting and building relationships with customers by creating customer value and satisfaction. However, marketing management does not accomplish this task alone. Its success will depend on other actors in the organization’s micro-environment—other departments, suppliers, marketing intermediaries, customers, competitors and various publics
The Company's MicroenvironmentCustomers-five types of marketsthatpurchase a company's goods and servicesCompetitors-those who serve a targetmarket with similar products and servicesagainst whom a company must gainstrategicadvantage.Publics-any group that perceives itselfhaving an interest in a company's ability toachieveitsobjectives
5 The Company’s Microenvironment ◼ Customers - five types of markets that purchase a company’s goods and services. ◼ Competitors - those who serve a target market with similar products and services against whom a company must gain strategic advantage. ◼ Publics - any group that perceives itself having an interest in a company’s ability to achieve its objectives
TheCompany'sMicroenvironmentIndesigningmarketingplans,marketingmanagementtakesotherorganizationgroupsintoaccount-groupssuch astopmanagement,finance,researchanddevelopment(R&D)purchasing,manufacturingand accounting.One featureof amarket-oriented organization is that information is sharedamong theseinterrelatedgroups which togetherformtheinternalenvironment.Senior management sets the organization's missionobjectives,broadstrategiesandpolicies.Marketingmanagersmustmakedecisionswithintheplansmadebyseniormanagement.Senior management must approvemarketingplans beforethey canbe implemented.Marketingmanagers must also work closely withotherdepartmentsin the organization.The finance department isconcerned with finding and using funds to carry out themarketingplan
6 The Company’s Microenvironment ◼ In designing marketing plans, marketing management takes other organization groups into account—groups such as top management, finance, research and development (R&D), purchasing, manufacturing and accounting. One feature of a market-oriented organization is that information is shared among these interrelated groups which together form the internal environment. ◼ Senior management sets the organization’s mission, objectives, broad strategies and policies. Marketing managers must make decisions within the plans made by senior management. Senior management must approve marketing plans before they can be implemented. ◼ Marketing managers must also work closely with other departments in the organization. The finance department is concerned with finding and using funds to carry out the marketing plan
R&D focuses onthe problems of designing safe and effectiveproducts,as well as the processes used.Purchasing concernsitself with getting suppliesand materials,and manufacturingisresponsibleforproducingthedesired number of cartonsoffinishedproduct.In service organizations such as retailers,we refertooperationsratherthan manufacturing.Operationsmanagement has thetask of ensuringthat storesstock andsell the merchandise wanted by customers,or making surethe organization takes on personnel with particularexpertisein the case of medical clinics and law firmsAccounting andfinance measure revenues and costsso astohelp marketing know how well it is achieving its sales andprofit objectives
◼ R&D focuses on the problems of designing safe and effective products, as well as the processes used. Purchasing concerns itself with getting supplies and materials, and manufacturing is responsible for producing the desired number of cartons of finished product. ◼ In service organizations such as retailers, we refer to operations rather than manufacturing. Operations management has the task of ensuring that stores stock and sell the merchandise wanted by customers, or making sure the organization takes on personnel with particular expertise in the case of medical clinics and law firms. Accounting and finance measure revenues and costs so as to help marketing know how well it is achieving its sales and profit objectives
Suppliers:Suppliersarean important link in theorganization's overall customer'value deliverysystem'.They provide the resources needed bythe organization to produce its goods andservices.Supplier developments can seriouslyaffect marketing programs.Marketing managersmust watch supply availability.Supply shortagesor delays,labor strikesand other events can costsales in the short run and damage customersatisfaction in the long run.Marketing managersalso monitor the price trends of their key inputsRising supply costsmayforcepriceincreasesthatcan harm the organization'ssales volume
Suppliers: ◼ Suppliers are an important link in the organization’s overall customer ‘value delivery system’. They provide the resources needed by the organization to produce its goods and services. Supplier developments can seriously affect marketing programs. Marketing managers must watch supply availability. Supply shortages or delays, labor strikes and other events can cost sales in the short run and damage customer satisfaction in the long run. Marketing managers also monitor the price trends of their key inputs. Rising supply costs may force price increases that can harm the organization’s sales volume
Marketingintermediaries(see P21)Marketing intermediaries help an organization topromote, sell and distribute its goods to finalbuyers.Theyincluderesellers,physicaldistributionfirms,marketing servicesagenciesand financial intermediaries.Resellers aredistribution channel firms that help theorganization find customers or make sales tothem.Theyinclude wholesalers (in someindustries referredto as distributors)andretailers who buy and resell merchandise.Inshort,Marketing intermediaries help the companyto promote,sell,and distributeits goods to finalbuyers.i.e.resellers
Marketing intermediaries (see P21) Marketing intermediaries help an organization to promote, sell and distribute its goods to final buyers. They include resellers, physical distribution firms, marketing services agencies and financial intermediaries. Resellers are distribution channel firms that help the organization find customers or make sales to them. They include wholesalers (in some industries referred to as distributors) and retailers who buy and resell merchandise. In short, Marketing intermediaries help the company to promote, sell, and distribute its goods to final buyers. i.e. resellers
Company's Internal EnvironmentPurchasingR&DManufacturingFinancemanagementAccountingdolMarketing10
10 Company’s Internal Environment