Government College Women University Faisalabad
Subject Name :Principles of Marketing
Course Code :MPA-562
Instructor Name:Maryam Saleem
Class& Section :MPA-2nd
Chapter Name : Analyzing the Marketing Environment
Book Name :Principles of Marketing by Philip Kotler & Gary Armstrong(global
edition)
Lecture No :6
Learning Outcomes
After studying this you will be able to explain
The Company’s Microenvironment
Suppliers
Company
competitors
Customers
Publics
Marketing intermediaries
The Marketing Environment
A company's marketing environment consists of the actors and forces outside marketing
that affect marketing management's ability to develop and maintain successful transactions
with its target customers. The marketing environment offers both opportunities and threats.
Successful companies know the vital importance of using their marketing research and
intelligence systems constantly to watch and adapt to the changing environment.
Too many other companies, unfortunately, fail to think of change as opportunity. They
ignore or resist critical changes until it is almost too late. Their strategies, structures,
systems and culture grow increasingly out of date. Corporations as mighty as IBM and
General Motors have faced crises because they ignored environmental changes for too
long.
The Marketing Environment
The marketing environment consists of a microenvironment and a macro environment.
The Microenvironment consists of the forces close to the company that affect its ability to
serve its customers the company, suppliers, marketing channel firms, customer markets,
competitors and publics.
The Macro environment consists of the larger societal forces that affect the whole
microenvironment -demographic, economic, natural, technological, political and cultural
forces. We look first at the company's microenvironment.
The Company’s Microenvironment
Marketing management's job is to create attractive offers for target markets. However, marketing
managers cannot simply focus on the target market's needs. Their success will also be affected by
actors in the company's microenvironment. These actors include other company departments,
suppliers, marketing intermediaries, customers, competitors and various publics.
The Company’s internal environment
Top management sets the company's mission, objectives, broad strategies and policies. Marketing
managers must make decisions consistent with the plans made by top management, and marketing plans
must be approved by top management before they can be implemented
Finance is concerned with finding and using funds to carry out the marketing plan.
R&D department focuses on the problems of designing safe and attractive products.
Purchasing worries about getting supplies and materials, whereas manufacturing is responsible for
producing the desired quality and quantity of products.
Accounting has to measure revenues and costs to help marketing know how well it is achieving its
Suppliers
Suppliers are an important link in the company's overall customer 'value delivery system".
They provide the resources needed by the company to produce its goods and services.
Supplier developments can seriously affect marketing.
Marketing managers must watch supply availability - supply shortages or delays, labor
strikes and other events can cost sales in the short run and damage customer Satisfaction in
the long run.
Marketing managers must also monitor the price trends of their key inputs. Rising supply
eosts may force price increases that can harm the company's sales volume.
Marketing Intermediaries
Marketing intermediaries are firms that help the company to promote,
sell and distribute its goods to final buyers
Types of Marketing Intermediaries
Physical
Resellers distribution
firms
Marketing
Financial
services
agencies intermediaries
Resellers are distribution channel firms that help the company find customers or make
sales to then). These include wholesalers and retailers which buy and resell merchandise.
Selecting and working with resellers is not easy. No longer do manufacturers have many small,
independent resellers from which to choose. They now face large and growing reseller
organizations. These organizations frequently have enough power to dictate terms or even shut
the manufacturer out of large markets.
Physical distribution firms help the company to stock and move goods from
their points of origin to their destinations. Working with warehouse and transportation firms, a
company must determine the best ways to store and ship goods, balancing such factors as cost,
delivery, speed and safety.
Marketing services agencies are the marketing research firms,
advertising agencies, media firms and marketing consultancies that help the company
target and promote its products to the right markets. When the company decides to use one
of these agencies, it must choose carefully because the firms vary in creativity, quality,
service and price. The company has to review the performance of these firms regularly and
consider replacing those that no longer perform well.
Financial intermediaries include banks, credit companies, insurance
companies and other businesses that help finance transactions or insure against the risks
associated with the buying and selling of goods. Most firms and customers depend on
financial intermediaries to finance their transactions. The company's marketing
performance can be seriously affected by rising credit costs and limited credit.
Competitors
The marketing concept states that, to be successful, a company must provide greater
customer value and satisfaction than its competitors do. Thus, marketers must do more
than simply adapt to the needs of target consumers. They must also gain strategic
advantage by positioning their offerings strongly against competitors 'offerings in the
minds of consumers.
No single competitive marketing strategy is best for all companies. Each firm should
consider its own size and industry position compared to those of its competitors. Large
firms with dominant positions in an industry can use certain strategies that smaller firms
cannot afford. But being large is not enough. There are winning strategies for large firms,
but there are also losing ones. And small firms can develop strategies that give them better
rates of return than large firms enjoy
Customers
The company must study its customer markets closely. Figure shows six types of customer market
Consumer markets consist of individuals and households that buy goods and services for
personal consumption. Business markets buy goods and services for further processing or for
use in their production process, whereas reseller markets buy goods and services to resell at a
profit. Institutional markets are made up of schools, hospitals, nursing homes, prisons and
other institutions that provide goods and services to people in their care. Government
markets are made up of government agencies that buy goods and services in order to produce
public services or transfer the goods and services to others who need them. Finally,
international markets consist of buyers in other countries, including consumers, producers,
resellers and governments.
Publics
Any group that has an actual or potential interest in or impact on an organization’s ability to
achieve its objectives.
Financial publics
Media publics
Government publics
Citizen-action publics
Local publics
General public
Internal publics
Thank you Respected Students
Best of Luck for the Learning process
