Power point presentation of internal and external environment

PPT marketing management

1. Analyzing The Marketing ENVIRONMENT

2. What is Marketing Environment? The actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers. The trading forces operating in a marketing place over which a business has no direct control, but which shape the manner in which the business function and is able to satisfy its customers.

3. Components of Marketing Environment There are two types of Environmental Factors: Internal Environmental Factors External Environmental Factors

4. Internal Marketing Environment Includes all those forces, which are inside the organization and have capacity to influence the organization and its performances.

5. Elements that make up the internal environment. 1. An organization's  mission statement (is a document)  describes what the organization stands for and why it exists. 2. Company policies  are guidelines that govern how certain organizational situations are addressed. 3. The  formal structure  of an organization is the hierarchical arrangement of tasks and people. 4. The  organizational culture  is an organization's personality. 5. A byproduct of the company's culture is the  organizational climate.  

6. Advantages of Internal Environment Increased efficiency : By understanding and managing the internal factors that affect operations, a company can improve its efficiency and productivity. Better communication : A positive internal environment can foster better communication and collaboration among employees, which can lead to more effective decision-making and problem-solving. Employee satisfaction : A supportive internal environment can improve employee satisfaction and motivation, which can lead to increased retention and commitment to the company .

7. Advantages of Internal Environment Flexibility : By understanding the internal factors that affect operations, a company can be more flexible and adaptable to changes in the external environment. Cost savings : By improving efficiency and reducing turnover, a positive internal environment can lead to cost savings for the company. Better Organizational Culture : A well-structured internal environment can lead to a better organizational culture, which can lead to a positive impact on the overall performance of the company.

8. Disadvantages of Internal E nvironment Limited control : A company may have limited control over certain internal factors, such as employee attitudes and behavior. Conflicts : Internal conflicts and power struggles can arise within the company, which can negatively affect operations and morale. Bureaucracy : A complex internal structure can lead to bureaucracy and slow decision-making.

9. Disadvantages of Internal Environment Inflexibility : A company may become too focused on internal factors and become inflexible to changes in the external environment. Costly to fix : Addressing internal problems can be costly and time-consuming, requiring resources to be invested in improving the internal environment. Limited focus on external environment : Over-focusing on internal environment can distract the organization from keeping an eye on the external environment, which can negatively impact the company's competitiveness.

10. Management changes Employee morale Culture changes Financial changes and/or issues Some examples of internal environmental factors are as follows:

11. Research Work DISCUSS THE 5 Ms of MANAGEMENT

12. External Marketing Environment Forces and events that take place outside of the organization and are unpredictable, hard to prepare for, and often bewildering.

13. Advantages of External E nvironment Economic growth : A strong macro environment can lead to overall economic growth, which can increase consumer spending and business opportunities. Access to resources : A favorable macro environment can provide businesses with access to resources such as labor, raw materials, and capital. Positive government policies : The government can create favorable policies that support business growth, such as tax incentives and regulations that protect competition. Access to new markets : A strong macro environment can open up new markets for businesses to expand into, providing opportunities for growth and diversification. Increased productivity : A healthy macro environment can lead to increased productivity and efficiency, as businesses are able to take advantage of new technologies and resources .

14. Disadvantages of External E nvironment Economic downturns : A weak macro environment can lead to economic downturns, which can decrease consumer spending and business opportunities. Limited access to resources : A unfavorable macro environment can limit access to resources such as labor, raw materials, and capital, making it difficult for businesses to operate and grow. Unfavorable government policies : The government can create policies that are detrimental to business growth, such as high taxes and restrictive regulations. Political instability : Political instability can create uncertainty and risk for businesses, making it difficult to plan and operate. Natural disasters : Natural disasters such as hurricanes, earthquakes, and floods can disrupt business operations and cause significant damage to infrastructure, assets and supply chain Competition : The macro environment can also be affected by global competition which can make it difficult for domestic businesses to compete with foreign companies on price and quality.

15. External Environmental Factors consists of : Microenvironment - The actors close to the company that affect its ability to serve its customers- the company, suppliers, marketing, intermediaries, customer markets, competitors, and publics. Macroenvironment - The larger societal forces that affect the microenvironment– demographic, economic natural, technological, political, and cultural forces.

16. MICRO Environment Micro environment refers to the environment which is in direct contact with company and affects the routine activities of business straight away. It is a collection of forces or factors that are close to the organization and can influence the performance as well as the day to day activities of the firm.

17. Micro environmental factors Suppliers: Suppliers can control the success of the organization when they hold power. Resellers : If the organisation’s product or service is taken to market by third-party resellers or market intermediaries such as retailers, wholesalers, etc. then the marketing success is impacted by those third-party resellers.

18. Micro environmental factors Customers: Who the customers are ( B2B or B2C , local or international, etc.) and their reasons for buying the product will play a large role in how the organization approaches the marketing of its products and services to them.  The competition: Those who sell the same or similar products and services as the organization is the market competition, and the way they sell needs to be taken into account. The general public: The organization has a duty to be a good corporate citizen.

19. Micro Environmental F actors

20. MACRO E nvironment Macro environment refers to the major external and uncontrollable factors that influence the decision making of an organization.

21. Develop a short note on the Macro environmental factors Political factors Economic factors Social Cultural factors Technology factors

22. CONSUMER DECISION MAKING PROCESS The consumer decision-making process is the steps that a consumer goes through beginning with the recognition that there is a need to make a purchase and ends after the purchase when the product is in use.

23. Steps in the consumer decision making process

24. T he Five steps in the consumer decision-making process Need recognition (awareness) Search for information ( research) Evaluation of alternatives (consideration ) Purchasing decision ( conversion) Post-purchase evaluation ( re-purchase)

25. (a) Need recognition (awareness ) The first and most important stage of the buying process, because every sale begins when a customer becomes aware that they have a need for a product or service.

26. Stages in need recognition Triggering Event or Stimulus : This is the initial moment when an individual becomes aware of a need or problem. Triggers can be internal (like feelings of hunger or dissatisfaction) or external (such as advertising, recommendations from friends, or observing others). Realization of a Problem or Desire : Once the trigger occurs, the individual starts to recognize that there is a gap between their current state and a desired state. For example, feeling hungry leads to the realization of the need for food. Assessment of the Need : At this stage, the individual evaluates the nature and extent of the need. They might consider questions like, "How urgent is this need?" or "What kind of solution am I looking for?" Information Search : To address the recognized need, the individual starts searching for information. This could involve researching different products or services, asking for recommendations, or comparing options.

27. Stages in Need Recognition Evaluation of Alternatives : After gathering information, the individual evaluates different options available to satisfy their need. This involves comparing the features, benefits, and costs of various solutions. Decision Making : Based on the evaluation, the individual decides on the most suitable option to fulfill their need. This decision can involve selecting a specific product or service, choosing a brand, or deciding on a particular course of action. Post-Purchase Evaluation : After the decision is made and the need is addressed, the individual evaluates the outcome. This involves assessing whether the chosen solution effectively met their needs and if they are satisfied with the decision.

28. (b) Information Search Information search is  a stage of the decision making process in which Consumers actively collect and utilize information from internal and/or external sources to make better purchase decisions .

29. Factors Influencing Information Search Product Involvement: Higher involvement typically leads to more extensive information search. For example, buying a car usually involves more research than purchasing a snack. Perceived Risk: The greater the perceived risk (financial, social, or performance risk), the more effort consumers will put into searching for information. Prior Knowledge: Consumers with more knowledge about a product or category might rely more on internal sources and perform a shorter search. Information Availability: The ease with which information can be accessed affects the extent and depth of the search. Online resources have made information searches faster and more comprehensive. Motivation and Time: A consumer's motivation and the time available for the search process can influence how thorough the search is.

30. Information Search Internal Search: The consumer first looks into their own memory to recall past experiences or knowledge about products or services related to their need. External Search: If the internal search is insufficient, the consumer seeks additional information from external sources. This includes: Personal Sources: Friends, family, and colleagues. Commercial Sources: Advertising, salespeople, and promotional materials. Public Sources: Consumer reports, reviews, and ratings. Experiential Sources: Product trials, demonstrations, and in-store experiences.

31. ©Alternative Evaluation The evaluation of alternatives is the stage where consumers assess the available options before making a purchase decision.

32. Purchase Decision Purchase decisions are  the processes consumers undergo to determine whether to buy a product or not , after identifying their need and researching products that could solve that need.

33. Post Purchase Decision Post-purchase evaluation is  a phase in the buying process where customers assess their satisfaction with a product or service after purchasing and using it . This stage may involve assessing the quality of their purchase, comparing it with their expectations, and providing customer feedback or reviews

34. Perceptual mapping * A perceptual map is a chart used to illustrate where a product or brand and its competitors are positioned according to consumer perception . * A perceptual map is a visual representation of how consumers perceive different products. It is created by mapping consumer responses to a particular product on a graph. The position of the product on the graph is relative to other products in the market.

35. Purpose of perceptual maps To understand consumer perceptions and preferences. To identify gaps in the market. To compare competitors and benchmark performance. To aid in strategic decision-making, such as positioning and repositioning.

36. How do marketers use perceptual maps? understanding why consumers prefer certain products, understanding how a new product is perceived in the market, and what the ideal mix of product attributes should be. After this data is gathered and analyzed, marketers can make informed decisions about their product and marketing strategy.

37. What does a perceptual map tell? A perceptual map is a valuable tool that can provide insights into how consumers perceive different products. It can be used to understand what motivates consumers to buy a product or how a new product is perceived in the market.

38. Steps to Create a Perceptual Map Identify Objectives: Determine what you want to understand or achieve (e.g., market positioning, competitive analysis). Select Attributes: Choose relevant dimensions that are important to consumers. For example, price vs. quality or innovativeness vs. reliability. Collect Data: Gather data from surveys, focus groups, or other research methods to understand consumer perceptions.

39. Steps to Create a Perceptual Map Plot the Data: Use software tools (like Excel, SPSS, or specialized mapping tools) to plot the products or brands on the map based on consumer perceptions. Analyze the Map: Look for patterns, such as clusters of competitors, gaps in the market, or areas of differentiation. Assess the relative positions of products/brands and how they align with consumer expectations and needs. Strategic Decisions: Use the insights from the map to make informed decisions about positioning, marketing strategies, product development, or brand adjustments.

40. Perceptual map

41. Benefits of perceptual mapping Benefits : Provides a clear visual representation of market perceptions. Helps identify opportunities for differentiation. Facilitates strategic planning and decision-making.

42. Limitations of Perceptual map Can oversimplify complex consumer perceptions. Accuracy depends on the quality and scope of the data collected. May not capture all relevant attributes or nuances.

43. Research Work Distinguish between industrial and individual buyers.