ch_2 Marketing Environment.pptxsgjcbncbjdgj

Mkt

1. Marketing environment Unit 2

2. Components of business environment

3. Immediate/micro environment In order to attain the goal of profitably satisfying specific needs of chosen target market, companies link themselves with many players in the market. All these actors that directly affect the functioning of the company an are controllable to the company constitute internal or micro environment Suppliers : timely + price + quality = right product Competitors: competitors’ analysis Intermediaries : middlemen, distributor, marketing agency, financial intermediary Customers : consumers, resellers, business, government, international Public: interest groups The quality of these factors determine the strengths and weaknesses of the company

4. Macro environment The actors of micro environment operate in a larger macro environment of forces and megatrends that shape opportunities and pose threats to the company. These forces represent uncontrollable which the company must monitor and respond to. The major forces are: Political : local and foreign government activities, stability, policy Economic : changes in interest rates, economic condition of the market Socio-cultural : changing attitudes and values of customers Technological : impact of change in business processes and consumer behavior Legal : legislative issues concerning business Ecological : conducts that do not harm the environment

5. SWOT Analysis

6. Dell computer In the mid-1990s, Dell Computer used a SWOT analysis to create a strong business strategy that has helped it become a very strong competitor in its industry value chain. Dell identified its strengths in selling directly to customers and in designing its computers and other products to reduce manufacturing costs. It acknowledged the weakness of having no relationships with local computer dealers. Dell faced threats from competitors such as Compaq and IBM, both of which had much stronger brand names and reputations for quality at that time. Dell identified an opportunity by noting that its customers were becoming more knowledgeable about computers and could specify exactly what they wanted without having Dell salespersons answer questions or develop configurations for them. It also saw the internet as potential marketing tool.

7. Strategy implemented The strategy that Dell followed after doing the analysis took all for of the SWOT elements into consideration. Dell decided to offer customized computers built to order and sold over the phone, and eventually, over the internet. Dell.Äôs strategy capitalized on its strengths and avoiding relying on a dealer network. The brand and quality threats posed by Compaq and IBM were lessoned by dell‚Äôs ability to deliver higher perceived quality because each computer was custom made for each buyer

8. Competitor’s analysis Identify current and future competitors in market Finding market share Performing SWOT analysis Build competition portfolio Plan strategies Follow up Direct competition Indirect competition Phantom competition

9. Segmentation targeting and positioning SEGMENTATION: a process of dividing the whole market into segments based on the differences in characteristics of the buyers. TARGETING: a process of selecting the most appropriate segment for the product and directing the efforts and resources towards it. POSITIONING: a strategy for a brand in order to occupy a distinct position in the market and the mind of a customer with respect to its competitors; (e.g. move/ iodex ; krack / burnol ; set-wet/ brylcream ; fog/ deodrants ; layers shot – wottagal )

10. Perceptual mapping

11. Bases of market segmentation

12. Segmentation process Identify market segments Bases: geographic, demographic, psychographic, behavioral Develop profiles for each segment : characteristics, similarity Evaluate market segments : feasibility, size, cost, profitability, competition Select best market segment : single, multiple Develop a positioning strategy : differentiation Focus on marketing program : marketing mix components

13. Targeting strategies Single segment concentration Selective specialization (multi segment) Product specialization Market specialization Full Market Coverage (undifferentiated market)

14. Positioning strategies “Positioning refers to the place a brand occupies in the mind of the prospects” Attribute positioning (bikes) Pricing as a positioning strategy (clothes) Positioning based on user (STC; Cigarettes) Positioning based on occasion (Dairy Milk) Positioning based on product class (Fair n Lovely) Positioning based on cultural symbols ( Air India; Wai Wai) Positioning based on competitors (Colgate - Pepsodent )