Marketing_Day_2.pptx marketing in MBA program

Mba

1. Marketing Management Class 2 Marketing Enviornment

2. Marketing Environment: Defination The  Marketing Environment  includes the Internal factors (employees, customers, shareholders, retailers & distributors, etc.) and the External factors( political, legal, social, technological, economic) that surround the business and influence its marketing operations. The  Marketing environment  is a marketing term and refers to factors and forces that affect a firm's ability to build and maintain successful customer relationships. The business environment has been defined as "the totality of physical and social factors that are taken directly into consideration in the decision-making behaviour of individuals in the organization.

3. Classification of marketing Environment

4. 3- 4 Demographic environment Economic environment Natural environment Technological environment Political environment Cultural environment The Company’s Macroenvironment

5. 3- 5 Publics Any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives: Financial publics : banks, investment houses, and stockholders. Media publics : Editorial opinion—newspapers, magazines, and radio and television stations Government publics : Citizen-action publics : consumer organizations, environment groups, and minority groups. Local publics : include neighborhood residents and community organizations General public Internal publics : workers, managers, volunteers, and directors The Company’s Microenvironment

6. 3- 6 Demographic Environment Demography is the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics. Demographic environment is important because it involves people, and people make up markets. Demographic trends include age, family structure, geographic population shifts, educational characteristics, and population diversity. The Company’s Macroenvironment

7. 3- 7 Economic Environment Economic environment consists of factors that affect consumer purchasing power and spending patterns. Subsistence economies consume most of their own agriculture and industrial output. Industrial economies are richer markets. The Company’s Macroenvironment

8. 3- 8 Economic Environment Changes in Income Value marketing involves ways to offer financially cautious buyers greater value—the right combination of quality and service at a fair price. Income distribution Upper-class consumers Middle-class consumers Working-class consumers Underclass consumers Changing consumer spending pattern The Company’s Macroenvironment

9. 3- 9 Natural Environment Natural environment involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities. Trends Shortages of raw materials Increased pollution Increased government intervention Green marketing The Company’s Macroenvironment

10. 3- 10 Technological Environment Most dramatic force in changing the marketplace with many positive and negative effects Rapid change Provides new markets and new opportunities Internet Medicine Miniaturization Weapons Credit cards Communication The Company’s Macroenvironment

11. 3- 11 Political Environment Political environment consists of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society. The Company’s Macroenvironment

12. MARKETING STRATEGIES Introduction Setting companies objectives Marketing Stratagies

13. Introduction Marketing strategy  is a long-term, forward-looking approach to planning with the fundamental goal of achieving a sustainable competitive advantage. An organization's strategy that combines all of its marketing goals into one comprehensive plan. Marketing strategy is the comprehensive plan formulated particularly for achieving the marketing objectives of the organization.

14. Setting Companies objectives Marketing objectives include some or all of the following: Increase sales Build brand awareness Grow market share Launch new products or services Target new customers Enter new markets internationally or locally Improve stakeholder relations Enhance customer relationships Improve internal communications Increase profit

15. Marketing Strategies Process of formulating marketing Strategy Market Segmentation Market positioning Market Entry Strategy Marketing Mix Strategy Timing strategy

16. Some Important Marketing Strategies Confrontation Strategy : If leader firm faces an extremely aggressive challenger, whose actions demand a quick and direct response. In such a situation, the market leader will engage any promotional war, engaging in a massive promotional expenditure that the aggressive challenger cannot match. The leader firm may engage in the price war whenever a new challenger is considering to enter in its market. This strategy will frighten the potential competitions and make then to withdraw from entering the market. Department of Management Studies. May be classified as Frontal Attack Flanking Attack Enrichment Attack Bypass Attack Guerilla War Fare

17. Some Important Marketing Strategies Defensive Strategy Defensive strategy  is defined as a marketing tool that helps companies to retain valuable customers that can be taken away by competitors. Competitors can be defined as other firms that are located in the same market category or sell similar products to the same segment of people. Defensive marketing strategies refer to the actions of a market leader to protect its market share, profitability, product positioning, and mind share against an emerging competitor. If not undertaken, some amount of customers will leave the established business in favor of the competitor—who can even displace the market leader and rise to the top.

18. Some Important Marketing Strategies Niche Strategy (Untouched Market) Niche marketing is an advertising strategy that focuses on a unique target market. Instead of marketing to everyone who could benefit from a product or service, this strategy focuses exclusively on one group—a niche market—or demographic of potential customers who would most benefit from the offerings. A niche market could stand apart from others because of: Geographic area Lifestyle Occasion Profession Style Culture Activity or habits Behavior Demographic Need Feature reduction or addition

19. MARKET SEGMENTATION

20. 7- 20 Market Segmentation Market segmentation is the process that companies use to divide large heterogeneous markets into small homogeneous markets that can be reached more efficiently and effectively with products and services that match their unique needs . Sub- dividing of a market into homogenous subsets of customers where any subset may conceivably be selected as a market target to be reached with a distinct marketing mix.

21. Markets have a variety of product needs and preferences. Marketers can better define customer needs. Decision makers can define objectives and allocate resources more accurately . Segmenting the markets creates further opportunities for business growth. Specific groups require specific products. The company’s resources are utilized for producing the right product for the right customer. The Importance of Market Segmentation

22. Steps in Segmenting Markets Select a market for study Choose bases for segmen-tation Select descriptors Profile and analyze segments Select target markets Design, implement, maintain marketing mix 1 2 3 4 5 6 Note that steps 5 and 6 are actually marketing activities that follow market segmentation (steps 1 through 4).

23. Targeting Choosing one or more segments for which to design your marketing operations

24. Undifferentiated Strategy Differentiated Concentrated Identify the Appropriate Targeting Strategy

25. Undifferentiated Strategy Single Marketing Mix Target Market Organization

26. Differentiated Strategy Organization Marketing Mix 1 Target Market Marketing Mix 2

27. Concentrated Strategy Single Marketing Mix Target Market Organization

28. Thank You