Marketing Environment

All the actors and forces influencing the

companys ability to transact business
effectively with its target market.

Includes:
Microenvironment - forces close to the company
that affect its ability to serve its customers.
Macroenvironment - larger societal forces that
affect the whole microenvironment.
The Marketing Environment
Company
Demographic
Economic
Natural
Technological
Political
Cultural
Company
Customers
Intermediaries
Suppliers

Competitors
Publics
The Microenvironment
Company
Customers
Publics
Suppliers
Competitors
Intermediaries

Forces Affecting a
Companys Ability to
Serve
Customers

The Companys
Microenvironment
Companys Internal Environment- functional areas
such as top management, finance, Research &
development, purchasing ,manufacturing,
accounting etc.

Suppliers - provide the resources needed to produce
goods and services. Resellers, physical distributuion
firms, marketing services agencies & financial
intermediaries

The Companys
Microenvironment
Customers - five types of markets that purchase
a companys goods and services.

Competitors - those who serve a target market
with similar products and services.

Publics - any group that perceives itself having
an interest in a companys ability to achieve its
objectives. Financial publics, Media publics,
Government publics, citizen action groups, local
publics, internal publics
Customer Markets
Company
Consumer
Markets
International
Markets
Government
Markets
Business
Markets
Reseller
Markets
The Macroenvironment
Demographic
Technological
Cultural
Economic
Political
Natural



Forces that Shape
Opportunities
and Pose Threats
to a Company



Demographic Environment
Study of human population in
terms of size, density, location, age,
gender, race, occupation
Indias demographic report
findings

* Estimated 1.1 billion people live in India, that
makes India 2
nd
most populous country in the world
* 70% of the population lives in rural areas, that
trend is slowly changing due to migration to urban
area, which is largely due to rapid urbanization
* Indias largest urban agglomerate are Mumbai,
Chennai, Kolkata, Delhi, Hyderabad & Bangalore.
* One of the largest middle class in the world, with
rising income.
* Has one of the largest & youngest populations in
the world.
Key Indian Demographic Trends

Changing Age Structure


Changing Family Structure
Marrying later, fewer children,
working women, and nonfamily households
Geographic Shifts
Increased Education
Economic Environment
Factors that affect consumer buying
power and patterns.
Economic Environment
Changes
in Consumer
Spending
Patterns
Economic
Development
Changes
in Income
Key
Economic
Concerns for
Marketers
Economic Environment in India
Economic policies
Economic growth
Monetary policy (Interest Rate)
Currency exchange rate
Level of Income
Distribution of income and growth
Savings,debt and credit availability
Economic legislations
Natural Environment
Natural resources needed as inputs
by marketers or that are affected by
marketing activities.
Natural Environment
Factors
Affecting
the
Natural
Environment
More Government
Intervention
Shortages of
Raw Material
Increased Costs
of Energy
Higher Pollution
Levels
Environmental issues in India
Air pollution, water pollution, garbage pollution and wildlife natural
habitat pollution challenge India

Natural environment of the country is greatly affected by commercial
vehicle industry mainly because of emissions from factory and
vehicles .
The Major global concern

Various measures are being taken by the govt and the commercial
vehicle manufacturers to protect the natural environment . these
include :-
Use of alternate biofuels
Use of eco friendly commercial vehicles
Anti pollution pressures
Implementation of Euro norms - Tata Motors is the first Indian
Company to introduce...
Technological Environment
Forces that create new product and
market opportunities
Technological Environment
Rapid Pace of
Change
High R & D
Budgets
Focus on Minor
Improvements
Increased
Regulation
Issues in the Technological
Environment
Technological Environment in India
Should be favorable to quality improvement,,
cost reduction, & introduction to new
products In market It should also lead to
Industrial development with global
competitiveness.
In India, the government has setup number
of R & D Activities, space research centers
etc.
For a long period of time, technological environment was not favorable for introduction of
updated technology in manufacturing activities.

Funds & Import Policies were not freely provided for import of updated technology.

Foreign collaboration & joint ventures were also not freely allowed. The scope given to
MNCswere limited.
Research & development activities were not given encouragement through special
facilities/concessions.

This suggests that technological environment was not favorable to industrial growth till the
beginning of economic reforms and globalization by 1980s.
Now, the technological environment has changed considerably along with liberalization and
globalization of Indian Economy.

The need of updated technology in Indian industries was accepted for cost reduction, quality
improvement and raising competitiveness of Indian goods in domestic & foreign markets.

Foreign exchange and liberal imports are now allowed for the introduction of new technologies
in Indian industries.

The expansion of infrastructure facilities in regard to transport , communication, electricity etc
also encourages the application of modern technology

Cultural Environment
Forces that affect a societys basic
values, perceptions, preferences,
and behaviors.

"The integrated sum total of learned
behavioral traits that are manifest
and shared by members of society

Cultural Environment
Of
Organizations
Of
Nature
Of
Oneself
Of
Society
Of
the Universe
Of
Others Views
That Express
Values
Cultural Environment of India
India is a vast country known for its
diversified culture and traditions
Regionalism, religion, language and caste are
all factors that need to be taken into account
when doing business in India.
Political Environment
laws, agencies and groups that
influence or limit marketing actions.

Political Environment


Greater
Concern for
Ethics
Increased
Legislation
Changing
Enforcement Key
Trends in the
Political
Environment
Political & Legal Environment of
India
India has a plural political system. With numerous
political parties, national level and state level, it is
very difficult to get a consensus among all parties for
starting any business. Also these political parties have
patronage of many factors, caste, creed and
ideologies
Legal environment is composed of laws, government
agencies, and pressure groups that influence and limit
various organizations and individuals.
Sometimes these laws create new opportunities
for business.


Various associations have been formed in India for automobile industry
ACMA and SIAM are two major automobile association in India.
acma(Automotive Component Manufacturers Association of India )
siam (Society of Indian Automobile Manufacturers )
Almost all major automobiles manufacturers are the members of
these two association .
these association perform various function and
they keep the manufacturers informed of the various rules and
regulation formulated by government.

Various legal that have been made by the govt relate to
safety measures
governments intention on harmonizing the regulatory standards with
the rest of the world
approval for foreign equity investment up to 100%
Formulation of an appropriate auto fuel policy to ensure availability
of adequate amount of appropriate fuel to meet emission norms
Plan to have a terminal life policy for CVs along with incentives for
replacement for such vehicles.
Assist development of vehicle using alternate energy source.
Promoting R&D activities in India by giving a weighted tax deduction
of up to 150% for in house research and R&D activities.


Responding to the
Marketing Environment
Environmental Management Perspective
Taking a proactive approach to managing
the microenvironment and the
macroenvironment to affect changes that
are favorable for the company. How? Hire
lobbyists , run advertorials, file law suits
and complaints, and form agreements.