Marketing Environment and Marketing Information System unit 2.pptx

Marketing Techniques and skillw

1. Marketing Environment and Marketing Information System

2. What is Marketing Environmental Analysis? Marketing Environmental Analysis is strategic analysis tool. This process helps to identify those internal and external factors of the environment which affect the organization’s abilities to work properly .   A business leader develops company’s structure, culture and policies to give clear guidelines to employees. But the business success depend upon upon how it deals with external environmental effects if any. Environment Analysis

3. This is a strategic analysis tool that analysts, marketers, and business executives use to gauge how certain factors can affect a business’s ability to work properly. These factors can either be  internal  or  external  and may or may not have an effect on a project’s performance . Strategic marketers must also take into consideration the macro-economic and micro-economic factors during the decision-making process of marketing environmental analysis. Environmental Analysis cond..

4. To Identify Business strength Part of environmental analysis is to take a look at the internal and external elements that affect the company. That means that you can gain a heightened awareness of your own people, but also those of your competition. Importance of Environmental Scanning

5. Aside from your strengths, Environmental Analysis also allows you to identify any weaknesses. This gives you a chance to patch up any loopholes in your marketing plans and fortify things that need strengthening or improvement Spot weaknesses and identifies threats

6. Environment scanning gives a more thorough assessment of the environment and therefore uncovers paths that can drive to succeed. Uncover opportunities

7. Since you know your strengths and weaknesses, you can better understand where specific resources should go. You can better allocate funding, material, or manpower to projects or departments that need it the most Optimize resources

8. Proper analysis of the environment allows you to stay on track and keep your company afloat no matter what. It lets you adjust as needed so that your business survives in the long term Ensures business survival

9. The environment is prone to change. People, technologies, and governments are ever-changing. This means that you need to make a lot of decisions throughout the life of your business. Environmental Analysis gives you a clear idea about the changes that your company is facing so that you can make  better decisions  that have positive outcomes. Decision-making

10. Environmental scanning is the process of gathering information about a company’s external events and relationships to assist top management in its decision making and developing its future course of action. Environmental scanning is a key component of strategic marketing planning. Environment scanning and analysis

11.  The major difference between environmental scanning and environmental analysis is, in scanning the pros and cons of an activity are conducted in a survey, before execution, whereas in analysis the effects and feedback are collected after execution of any activity. Differences between environment analysis and scanning

12. Concentrated Environmental Scanning Comprehensive Environmental Types of Environment Scanning

13. If some specific environmental components are only analyzed, it is called centralized or concentrated scanning . For Example , if economic conditions are only studied , it is termed as concentrated scanning. This type of environmental scanning is useful to understand what changes are likely to occur , how these may affect the firm , and what response would be appropriate in the circumstances. Concentrated Environmental Scanning

14. It is the process of analyzing all the components of environment in a detailed manner. It is time consuming and expensive. Comprehensive Environmental scanning

15. The environmental analysis process includes four major steps. These are as follows-  Scanning – Environmental scanning is referred to a process where the business environment is deeply analyzed to spot any deviations or factors that may impact the overall business. It acts as an alarming ring for the organization to make suitable strategies.  Monitoring – In environmental scanning, the data is collected from several sources, which is further used for monitoring and finding trends in the business environment.  Forecasting – Environmental forecasting can be defined as the process of estimating future outcomes based on the data acquired and analzsed .  Assessment – In the last stage, it is determined whether the accessed environmental factors are proving an opportunity or threat to the business. Process of Environment Scanning

16. Techniques of Environment Scanning  The following are environment scanning techniques. Let’s have a look –  SWOT analysis – SWOT analysis, also known as Strengths, Weaknesses, opportunities and threats analysis, is the combination of internal and external factors where Strengths, Weaknesses are internal factors; however, opportunities and threats are external factors.  PEST analysis – PEST analysis is also known as Political, economic, social, and technological analysis of the business environment. Generally, the PEST analysis deals with the external macro-environment.  ETOP – ETOP, also known as Environmental Threat Opportunity Profile, helps the organization analyze the environmental impact depending on Opportunities and threat Techniques of Environment Scanning 

17. There are several factors which affect a firm. All the factors which affect the operations of a firm are known as  marketing environment . Few of these factors can be controlled by the firm but not all.  In order to deal with these factors, firm must understand their  market environment  so that positive and negative factors would be managed accordingly. Marketing Environment

18. “A company’s marketing environment consists of the actors and forces outside of marketing that affect marketing management ability to build and maintain successful relationships with target customers”. – Philip Kotler Marketing Environment Definition

19. Dynamic : We all know that nothing remains the same forever, and things change in the blink of an eye. The environment in which the company operates changes over time. There can be changes in trends, technology, laws, government policies and customer tastes. Relative : The marketing environment is relative in nature. Also, it is distinct for each organization. You might have observed that there are some products that get good responses in a particular country while they fail in another. Do you know why this happens? This is because there is a change in the marketing environment. Features of Marketing Environment

20. Uncertain : The market is unpredictable, and so does the marketing environment. Even when the company closely and constantly keeps a watch on the market, it faces unexpected threats Complex : Interaction among different forces operating in the marketing environment makes it complex Features…

21. It includes all factors closely associated with the operations and influences its functioning . These factors are controllable to some extent. Micro Environment of the company

22. Micro Environment

23. 1.Customers : Every business revolves around fulfilling the customer’s needs and wants. Thus, each marketing strategy is customer oriented. It focuses on understanding the need of the customers and offering the best product that fulfils their needs. 2.Employees : They are the lifeblood of a business. This is because they contribute significantly to its success. They are the ones who can make or break the company. Thus, Training & Development is crucial to impart marketing skills to an individual Components

24. 3.Suppliers : They are the party from whom the firm purchases material. Using the material, the firm produces finished goods. Hence, they are very important for the organization. It is pertinent to identify the suppliers existing in the market and choose the best that fulfils the firm’s requirements. 4.Channel partners : Retailers and distributors are important to the success of marketing operations. As they are in touch with customers, they can give suggestions about customers’ demand for a product and its services. Also, they are the ones who remain updated about the increase or decrease in sales Components contd..

25. 5.Competitors : We all know that competition leads to success. Keeping a close watch on competitors enables a company to design its marketing strategy accordingly. 6.Shareholders : They are the owners of the company. Every firm has an objective of maximizing its shareholder’s wealth. Thus, marketing activities should be undertaken keeping in mind the returns to shareholders Components..

26. 7. Government : The Government departments make several policies, viz.Pricing policy Credit policy Education policy Housing policy, etc. These policies do have an influence on marketing strategies. A company must keep track of these policies and make marketing programs accordingly. This is important to be in line with the prevailing laws and regulations Components..

27. 8. General public : The business has some social responsibility towards the society in which it is operating. Thus, all marketing activities should be designed to increase society’s welfare as a whole Components..

28. Macro Environment  is the external environment factors greatly influenced the business success, strategies and decision making. These factors are uncontrollable by the business organizations.  The wider and broader set of economical conditions is known as macro environment. Macro Environment

29. Components of Macro Environment

30. How Macro Environment Factors affect Business There are 6 macro factors that affect business environment positively or negatively. Marketers must assess macro factors for developing sound marketing strategy. There are many strategic analysis tools (PEST, SWOT, Porter’s 5 Forces) to assess these macro environmental factors.  PESTLE Analysis tool  is widely used in the business community to find out opportunities and threats. Once understand the outcome, marketers can utilize opportunities and minimize threats How Macro Environment Factors affect?

31. These determine the extent to which government and government policy may impact on an organization or a specific industry. This would include political policy and stability as well as trade, fiscal and taxation policies too. Political Factors  

32. Economic Factors An economic factor has a direct impact on the economy and its performance, which in turn directly impacts on the organisation and its profitability. Factors include interest rates, employment or unemployment rates, raw material costs and foreign exchange rates Economic Factors

33. The focus here is on the social environment and identifying emerging trends. This helps a marketer to further understand consumer needs and wants in a social setting. Factors include changing family demographics, education levels, cultural trends, attitude changes and changes in lifestyles. Social Factors

34. Technological factors consider the rate of technological innovation and development that could affect a market or industry. Factors could include changes in digital or mobile technology, automation, research and development. There is often a tendency to focus on developments only in digital technology, but consideration must also be given to new methods of distribution, manufacturing and logistics. Technological Factors

35. Environmental factors are those that are influenced of the surrounding environment and the impact of ecological aspects. With the rise in importance of CSR (Corporate Sustainability Responsibility) and sustainability, this element is becoming more central to how organisations need to conduct their business. Factors include climate, recycling procedures, carbon footprint, waste disposal and sustainability. Environmental Factors

36. An organization must understand what is legal and allowed within the territories they operate in. They also must be aware of any change in legislation and the impact this may have on business operations. Factors include employment legislation, consumer law, healthy and safety, international as well as trade regulation and restrictions. Political factors do cross over with legal factors; however, the key difference is that political factors are led by government policy, whereas legal factors must be complied with. Legal Factors

37. The reactive marketing views marketing environmental forces as totally uncontrollable and difficult to predict. This is a passive approach, under which, the organization tries to adjust its marketing mix and program according to the changes in the environment. Organizations that adopt the environmental management perspective follows proactive marketing. Proactive marketing  believes that although many of the environmental forces such as demography, economy, culture and natural factors are not controllable, the environmental forces such as politics, law and technology can be influenced by correct and calculated moves. Proactive marketing uses political, psychological, economic and public relations skills to influence the environmental forces to the organization's benefits. Responding Marketing Environment

38. PESTEL Analysis SWOT Analysis ETOP Analysis Methods of Analysis

39. A PESTLE analysis is a tool used to gain a macro picture of an industry environment. PESTLE stands for Political, Economic, Social, Technological, Legal and Environmental factors. It allows a company to form an impression of the factors that might impact a new business or industry. PESTEL Analysis

40. SWOT analysis is a framework for identifying and analyzing an organization's strengths, weaknesses, opportunities and threats. These words make up the SWOT acronym. The primary goal of SWOT analysis is to increase awareness of the factors that go into making a business decision or establishing a business strategy. SWOT Analysis

41.   ETOP  analysis (environmental threat and opportunity profile) is the process of gathering information about events and their relationships within an organization’s internal and external environments. The basic purpose of environmental scanning is to help management determine the future direction of the organization. Structuring of environmental issues is necessary to make them meaning full for strategy formulation ETOP Analysis

42. Environmental scanning is the monitoring, evaluating, and disseminating of information from the external and internal environment to key people within the corporation or organization. Business environment analysis is a regular business feature. It results in a quantity of information related to forces in the environment. It usually relates to events, trends, issues, natural calamities and expectations.  ETOP  analysis (environmental threat and opportunity profile) is the process of gathering information about events and their relationships within an organization’s internal and external environments. The basic purpose of environmental scanning is to help management determine the future direction of the organization. Structuring of environmental issues is necessary to make them meaning full for strategy formulation ETOP Analysis

43. The  Marketing Information System  refers to the systematic collection, analysis, interpretation, storage and dissemination of the market information, from both the internal and external sources, to the marketers on a regular, continuous basis. Marketing Information System

44. MIS