Banking Marketing Aptitude Marketing Environment Marketing Environment

 

Marketing Environment

 

           

According to Philip Kotler: "A companies" marketing environment consist of the factors and Forces outside ide marketing that  Affect marketing management ability to build and maintain  successful  relationship with target costumer?.

 

 

Marketing Environment
Micro Environment	Macro Environment
(i) Company	(i) Demographic Forces
(ii) Suppliers	(ii) Economic Forces
(iii) Marketing Channels	(iii) Natural Forces
(iv) Intermediaries	(iv) Technological Forces
(v) Customers	(v) Political forces
(vi) Public	(vi) Cultural forces

 

 

Micro Environment

     

(i) Companies Internal Environment:

·                     Top Management                       

·                     Finance

·                     Research and Development         

·                     Purchasing

·                     Manufacturing                           

·                     Accounting

 

(ii) Suppliers:

·            Provide resources needed by the company to produce goods and service

·            Scarcities, delay labor strikes etc. can harm a company's sales and lead to customer dissatisfaction.

·            Need to monitor price trends or supplies that can effect company?s pricing and sales volume. 

 

(iii) Marketing Intermediaries:

·                     Resellers; Wholesalers & Retailers

·                     Physical distribution firms; Warehouse, transportation firms

·                     Marketing service agencies; egg- MR agencies, AD agencies. Media Houses, Marketing Consultants.

·                     Financial Intermediaries

 

(iv) Consumers:

·                     Consumer Markets- Individuals, households

·                     Business Markets- buy good for further processing

·                     Resellers markets- buy good to resell a profit.

·                     Government markets- International Markets

 

(v) Competitors;

·                     Marketing has to offer specific advantages over competitors in order to gain market share.

·                     Marketing strategies are formulated by taking into consideration the firm/s size /position in industry compared to its competitors.

 

(vi)  Public:

·            Financial Public                              

·            Media Public

·            Government Public             

·            Citizen action Public

·            Local Public                                  

·            Internal Public

·            General Public

 

Macro Environment:

 

(i) Demographic environment:

·                     Age                                          

·                     Sex

·                     Marital status                            

·                     Occupation

·                     Income                                     

·                     Education

 

(ii) Economic Environment:

·            National Income                 

·            Monetary Structure

·            Banking System                             

·            National Production

·            Income Distribution                         

·            Level of Consumption

·            Commercial Structure                     

·            Size of Market

·            Foreign Trade                                 

·            Rate of Interest

·            Use of Human resources      

·            Industrial Development of Nation

·            Type of Production             

·            Venture

 

(iii) Natural environment:

·            Environmental Rules and Act           

·            Environmental Policy and System

·            Environmental Accounting   

·            Environmental Audit

·            Environmental Standard      

·            Harvesting System

·            Mineral Policy                                

·            Natural Policy

 

(iv) Technological Environment:

·                     Need to Spend to R & D             

·                     High Expectation of Consumers

·                     Fast Changing Technology          

·                     Productivity

·                     Demand for Capital                    

·                     Social Change

 

(v) Political Environment:

·                     Legal Systems                           

·                     Restriction on Ownership

·                     Tax Laws                                 

·                     Import/Export Restrictions

·                     Inflation                                    

·                     Capital Flow Restriction

 

(vi) Cultural Environment:

·                     Social Responsibility                   

·                     Caste System

·                     Ethics in Business                       

·                     Social Audit                    

·                     Scientific Method                       

·                     Spiritual

·                     Code of Law                             

·                     Corporate Governance

·                     Cultural Code                            

·                     Social Trends

·                     Education                                 

·                     Authority

 

Swot Analysis: A scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified as strengths (S) or weaknesses (W), and those external to the firm can be classified as opportunities (0) or threats (T). Such an analysis of the strategic environment is referred to as a SWOT analysis.

 

Strengths:

A firm's strengths are its resources and capabilities that can be used as a basis for developing a competitive advantage. Examples of such strengths include:

·                     Patents

·                     Strong brand names

·                     Good reputation among customers

·                     Cost advantages from proprietary know-how

·                     Exclusive access to high grade natural resources

·                     Favorable access to distribution networks

 

Weakness:

The absence of certain strengths may be viewed as a weakness. For example, each of the following may be considered weaknesses:

·                     Lack of patent protection

·                     A weak brand name

·                     Poor reputation among customers

·                     High cost structure

·                     Lack of access to the best natural resources

 

Opportunities:

The external environmental analysis may reveal certain new opportunities for profit and growth. Some examples of such opportunities include:

·                     An unfulfilled customer need

·                     Arrival of new technologies

·                     Loosening of regulations

·                     Removal of international trade barriers

 

Threats:

Changes in the external environmental also may present threats to the firm. Some examples of such threats include:

·                     Shifts in consumer tastes away from the firm's products

·                     Emergence of substitute products

·                     New regulations

·                     Trade Barriers trade barriers

 

Pest Analysis:

 

A scan of the external macro-environment in which the firm operates can be expressed in terms of the following factors:                   

·                     Political                                    

·                     Economic

·                     Social                                       

·                     Technological

 

Political Factors: It includes government regulation and legal issues and define both formal and informal rules under which the firm must operate. Some examples include?

·            Tax policy                         

·            Employment laws

·            Environmental regulations                

·            Trade restrictions and tariffs

·            Political stability

 

Economic Factors: Economic factors affect the purchasing power of potential customers and the firm" s cost of capital. The following are examples of factors in the macroeconomic.

·                     Economic growth                       

·                     Interest rates

·                     Exchange rates                                      

·                     Inflation rates

 

Social Factors: Social factors include the demographic and cultural aspects of the external macro-environment. These factors affect customer needs and the size of potential markets. Some social factors include-

·                     Health consciousness                  

·                     Population growth rate

·                     Age distribution                          

·                     Carrier attitudes

·                     Emphasis on safety

 

Technological Factors: Technological factors can lower barriers to entry,

Reduce minimum efficient production levels, and influence outsourcing decisions some technological factors include-

·            Research and development activity

·            Automation                                     

·            Technological incentives

·            Rate of Technological change