External environment - Micro and Macro environment factors that affect the company's ability to serve its customers.

1. The Marketing Environment
and Market Opportunity
Analysis
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2. Three kinds of companies
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•Those who make things happen
•Those who watch things happen
•Those who wonder what’s happened

3. Marketing Analysis
Marketing
Environment
Micro
Macro
Time
9/23/2013 3Introduction to Marketing Environnent- Nikhil
Kshirsagar
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4. Changing Environment
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Kshirsagar
Gaanyesh Kulkarni, Principal Consultant
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5. Micro Environment
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Micro Environment refers to “Small forces within
the company that affect its ability to serve its
customers”

6. Actors Affecting Micro
Environment
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Company
(Marketing
Dept)
Employees
Customers
Suppliers
Competitors
Intermediaries
Publics
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7. Customers
Consumer market
(End user)
B2B (OEM)
(Maruti, Hyundai)
Reseller market
(MRF Pretreads)
Govt. market
(MSRTC, GSRTC, K
SRTC)
International market
(South
Asia, GCC, Africa)
Actors Affecting Micro
Environment
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R&D
Purchase
Accounts
Finance
Operation
s
HRD
Company
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8. Actors Affecting Micro
Environment
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Suppliers
Pricing
Availability
Supplier
Relations
Timely
Reach
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9. Actors Affecting Micro
Environment
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Intermediaries
C&F Agents Distributors Wholesalers
Freight
Carriers
Publics
Financial
Publics
(Banks, Fis)
Media
Publics (Print
& Elect.
Media, Advtg
. Agcy)
Regulation
Agencies
(ATMA)
Citizen’s
Action
Groups (e.g. -
PETA, Green
peace India)
General
Publics
(Shareholders,
Consumers)
Internal
Publics
(Employees)
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10. Businesses can not always control Micro Environment
factors; but they should endeavor them along with Macro and
Internal Environment factors…
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11. Macro Environment
Demographic
Natural
Environment
Technological
Competition
Social-
CulturalPolitical &
Legal
Factors
Economic
Company
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12. Demographic Environment
Population Growth
Population Age Mix
Ethnic Markets
Household Patterns
Educational Groups
Geographical Shifts in Population
Shift from Mass Market to Micro markets
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13. Economic Factors
Economic Areas
of Concern to Marketers
Distribution of
Consumer
Income
Inflation Recession
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14. Political Environment
Includes:
- Laws
- Government Agencies
- and Pressure Groups
that Influence or Limit
Various Organizations
and Individuals In a
Given Society.
Increasing Legislation
Changing Government
Agency Enforcement
Increased Emphasis on Ethics
& Socially Responsible Actions
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15. Values
Attitudes
Lifestyle
Social
Factors
Macro Environment - Suhas Gorde9/23/2013 15
Social Factors
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16. Technological Environment
• Changes rapidly
• Creates new markets and
opportunities
• Challenge is to make
practical, affordable products
• Safety regulations result in higher
research costs and longer time
between conceptualization and
introduction of product
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17. Competitive Factors
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18. Natural Environment
Factors Affecting
the
Natural
Environment
Shortages of
Raw Materials
Increased Pollution
Governmental
Intervention
Environmentally
Sustainable
Strategies
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19. Financial and Economic
Forces
Marketplace (top-down approach):
– Sector Analysis
– Trend Analysis
– Cluster Analysis
– Estimates demand for specific products
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20. Financial and
Economic Forces
• Revenue and Profitability
• Capital Availability (Internal / External)
• Inflation Rate
• Interest Rate
• Exchange Rate
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21. Political and Legal Forces:
– Market entry barriers (e.g. Oil & Gas and Defense
sectors)
– Political instability
– Regulations (e.g. FDI in retail and aviation sectors)
– Taxes (e.g. Vodafone)
– Price controls (e.g. Sugar sector)
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Financial and
Economic Forces
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22. External Analysis
External
Forces
Market
Demand
Competition
Supply
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23. Demand Analysis
• Market Size
• Market Growth
• Marketing Potential
• Market Segmentation
• Market Factor
Identify
Factor
Determine
Relationship
Forecast of
Market
Factor
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24. Competitive Analysis
• Level of Competition
• Competitors Strengths and Weakness
• Competitive Structure
• Competitive Strategy and Resources
Product Form
Product Category
Generic or need
Rivalry or Budget Based
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25. Supply Analysis
• Supply Side Estimation
Ms = P+ (I - E) + (So – Sc)
• Bargaining Power of Suppliers
• Determinants of Supply
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26. Internal Analysis
• Attractive Opportunities
• Own Strength and Weaknesses
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28. Pool Of Opportunity
Selecting the Best
C
B A
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Available
Strength
New
StrengthOvercome
Weakness

29. ?Decision?
Utilizing Available Strength
Select Opportunity
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C

30. Develop New Strength
Select Opportunity
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A

31. Overcome Weakness
Select Opportunity
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B

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Opportunities
• Books and DVDs
• Computers
• Personal Care
• Mobile, Television and
appliances
• Watches, Belts, Luggage Bags
• AC, Clothing and Many More
Strength
• Heavy Discounts
• Distribution Network
• Cash On Delivery
• Real time tracking order

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