External marketing environment

all about the external factors of the marketing environment

1. EXTERNAL MARKETING ENVIRONMENT PRESENTED BY: ANKIT BANSAL DHIRENDRA ADABARIA

2. It refers to the environment that has an indirect influence on the business. The factors are uncontrollable by the business. There are two types of external environment: MICRO- ENVIRONMENT MACRO- ENVIRONMENT EXTERNAL ENVIRONMENT

3. Micro Environment The micro environment is also known as the task environment and operating environment because the micro environmental forces have a direct bearing on the operations of the firm. Micro environmental factors are closely related to a specific firm and are included as a part of the firm’s total marketing system.

4. FACTORS OF MICRO ENVIRONMENT MICRO MARKEING ENVIRONMENT

5. 1. COMPANY’S INTERNAL ENIRONMENT According to Philip Kotler, in designing marketing plans, the marketing manager should take into confidence, the other departments working in the same organization. All these departments forms the internal environment. MARKETING

6. 2. Suppliers An important force in the micro environment of a company is the suppliers, i.e., those who supply the inputs like raw materials and components to the company. supplier problems can seriously affect marketing. The company should develop specifications, searching the potential suppliers, selecting the suppliers who can supply the best mix of quantity, quality, credit facility, warranties, low price.

7. 3.Marketing Intermediaries Like suppliers, marketing intermediaries also form an important component of the company’s overall value delivery system. It help the company to promote, sell and distribute its products to final buyer. The marketing intermediaries include middlemen such as agents, reseller and merchants that help the company find customers or close sales with them.

8. 4.Customer The major task of a business is to create and sustain customers. A business exists only because of its customers. TYPES OF CUTOMERS

9. 5.Competitors Competitors are those individuals and firms who sells similar goods and services in the same market.it is therefore necessary to build an efficient system of marketing. No single competitive marketing strategy is best for all companies. Each firm should consider its own size and industry position as compared to those of its competitors.

10. 6.Public Public can be said as any group that has an actual or potential interest in or on an organization’s ability to achieve its objectives. It is the duty of the company to satisfy the people at large. TYPES OF PUBLIC

11. M ACRO E NVIRONMENT Macro environment is also known as General environment and remote environment. Macro factors are generally more uncontrollable than micro environment factors. When the macro factors become uncontrollable , the success of company depends upon its adaptability to the environment.

12. FACTORS OF MACRO ENVIRONMENT

13. 1.DEMOGRAPHIC ENVIRONMENT Demographic factors include detail about the population structure, age-group, income group, division according to sex, marital status, occupation, profession, etc. . The study of demographic features of the target market helps the marketer to develop an understanding about prospective consumers and market potentials of a product and facilitates market segmentation. Without knowing the demographic features, a marketer can not market his product successfully because it is the people whose needs have to be satisfied, keeping in view their capacity to spend and their willingness to spend.

14. Economic environment means the purchasing power and desire to spend the income by the consumers, result in effective demand, which in turn, is influenced by economic conditions. High economic growth assures higher level of employment and income, and this leads to marketing boom in many industries. Marketing environment is also influenced by many other economic factors such as: Interest rate Money supply Price level Consumer credit 2. Ec o nomic Environment

15. 3.Social and Cultural Environment Socio-cultural environment determines the value system of the society which in turns affects the marketing environment. Cultural differences such as religion, languages, food habits, dress code, festivals and consumer’s aspirations also influence the marketing environment.

16. 4.Political and legal Environment It is also know as public policy environment. Political and legal forces are gaining considerable importance in marketing activities and operations of business enterprises. Marketing systems are affected by govt. monetary and fiscal policies, import and export policies, custom duties etc. e.g. anti-pollution laws also influence marketing plans and policies. Thus, marketers should keep in mind the public policy of the govt. and laws of the land while preparing marketing plans, policies and strategies.

17. 5.Competitive forces The existence of competition in the market is essential for building a strong market particularly in case of a democratic society. In the free market economy, it is not possible to take any marketing decision without evaluating the existence of competition. The marketing manager has little or no control over the actions of the competitor.

18. 6.Consumer demand Consumer demand is ever changing, unpredictable and also immeasurable with accuracy. In modern marketing concept, customer needs and desires act as the Centre of the marketing universe. Consumer demand is also an uncontrollable marketing environment, which affect the overall marketing environment.

19. 7.Ecological Environment Physical and geographical factors can play an important role in constituting the noneconomic environment and thereby affect the business .The application of modern technology in industries lead to rapid economic growth at a huge social cost i.e. deterioration of the physical environment around us, e.g. air pollution , noise pollution and water pollution , etc. this as increased the social responsibility of the business. Nowadays, a marketer is not only required to satisfy the needs of his customers but also the needs of the society as a whole.

20. 8.Technological Environment Science and technology are always changing. This changing face of science and technology has great impact on the marketing environment. Change in technology means change in production and production possibilities, their manufacturing process, cost and qualities. Technology is a major effective force in every business and industry. Its consequent stresses on marketing cannot be denied. A new development may bring a new industry into existence or makes an existing profitable product quite obsolete.

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