Environment analysis

Environment Analysis
Dr. Gopal Thapa
Tribhuvan University

Marketing Environment
 The term Marketing Environment refers to the
forces and factors that affects the organization
ability to built and maintain good relationship with
its customers.
 Marketing environment surrounds the organization
and it impacts upon the organization.
 Marketers have to interact with internal and
external people at micro and macro level and
builds internal and external relationships
7/25/2017 Copy right reserved 2

Marketing Environment
 The actors and forces outside marketing that affect
marketing management’s ability to build and
maintain successful relationships with target
consumers. (Kotler)

Micro Environment
 Individuals and organizations that are close to the
marketing organization and directly impacts its
ability to serve its customers, makes micro
environment.
 The micro environment refers to the forces that are
close to the marketing organization and directly
impact the customer experience.
 It includes the organization itself, its suppliers,
marketing intermediaries, customers, markets or
segments, competitors, and publics.

Micro Environment
 Micro environment is also know as operating or
task environment.
 The actors close to the company that affect its
ability to serve its customers:
 The company
 Suppliers
 Marketing intermediaries
 Customer markets
 Competitors and
 Publics (Kotler & Armstrong)

The Company
 It includes:
 Top management
 Finance, R&D, purchasing, operations and accounting
 Company’s mission, objectives, strategies and policies
 Resources, organizational structure

Suppliers
 Suppliers form an important link in the company’s
overall customer value delivery system
 They provide the resources needed by the
company to produce goods and services
 Suppliers problem can seriously affect marketing
 Marketing managers must watch supply
availability – supply shortage or delays, labor
strikes etc.

Suppliers
 Rising supply cost force to increase price that can
harm company’s sales volume, image, as well as
customer satisfaction
 Most marketers today treat their suppliers as
partners in creating and delivering customer value

Marketing Intermediaries
 Marketing intermediaries help to the company to
promote, sale and distribute its goods to customers
 They includes:
 Resellers (wholesalers and retailers)
 Physical distribution firms (Transport and warehouse)
 Marketing service agencies (Research firms, ad
agencies, media, marketing consultants) and
 Financial intermediaries (Bank, insurance co.)

Marketing Intermediaries
 Like suppliers, marketing intermediaries form an
important component of the company’s overall
value delivery system
 The company must partner effectively with
marketing intermediaries to optimize the
performance of entire system
 Thus, today’s marketers recognize the importance
of working with their intermediaries as partners
rather than simply as channels through which they
sell their products.

Customers
 The company needs to study five types of
customers markets closely
 They are:
 Consumer markets (personal consumption)
 Business markets (production process)
 Reseller markets (to resell at profit)
 Government markets (public service)
 International markets (buyers in other countries
including consumers, producers, resellers and
governments)

Competitors
 The marketing concept states that to be successful,
a company must provide greater customer value
and satisfaction than its competitors do.
 They must gain strategic advantage by positioning
their offerings strongly against competitors’
offerings in the mind of customer
 No single competitive marketing strategies is best
for all companies.

Publics
 A public is any group that has an actual or
potential interest in or impact on an organizations
ability to achieve its objectives.
 Various types of publics are:
 Financial publics (bank, investment company, stock holders)
 Media publics (Radio, TV, newspaper, magazine)
 Government publics (product safety, packaging, truth in
advertising)

Publics
 Citizen action publics (Consumer organizations,
environmental groups, minority groups)
 Local publics (Neighborhood residents, community organization)
 General publics (Laymen)
 Internal publics (Workers, managers, volunteers, BOD)

Macro Environment
 Macro environment refers to all forces that are
part of the larger society and affects the micro
environment.
 It includes demography, economy, politics,
culture, technology, and natural forces. Macro
environment is less controllable.

Macro Environment
 The large societal forces that affect the micro
environment –
 Demographic
 Economic
 Natural
 Technological
 Political and
 Cultural forces (Kotler & Armstrong)

Demographic Environment
 Population size
 Population growth
 Age mix
 Migration
 Urbanization

Economic Environment
 Economic system (Free market, centrally planned, & mixed
economy)
 Economic policies (Monetary, fiscal, & industrial policy)
 Economic condition (Income, business cycle, inflation, stage
of economic development)
 Globalization

Socio-cultural Environment
 Social institution (family, reference group, opinion leader,
social class)
 Social change
 Life style
 Value and belief
 Religion
 Language
 Attitude

Technological Environment
 Level of technology
 Pace of technological change
 Technology transfer
 Research and development

Political-legal Environment
 Political system
 Political institution
 Government agencies
 Political philosophy
 Political stability
 Business law and court of laws
 Law administrators
 Power blocks
 Regional groups

Natural Environment
 Natural Resources
 Location
 Topography
 Climate
 Natural calamities

Environment Analysis
 Environmental analysis is a strategic tool.
 It is a process to identify all the external and
internal elements, which can affect the
organization's performance.
 The analysis entails assessing the level of threat or
opportunity the factors might present.

Thank You

Environment analysis

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (19)

Similaire à Environment analysis

Similaire à Environment analysis (20)

Plus de Tribhuvan University

Plus de Tribhuvan University (20)

Dernier

Dernier (20)

Environment analysis