BDK101 02 PRINCIPLE OF MARKETING

SCHOOL OF BUSINESS & MANAGEMENTFACULTY OF BUSINESS MANAGEMENT

PREPARED BY:FARAH ZEEHAN BINTI ZULKIFLI

CHAPTER 2 MARKETING ENVIRONMENT

PRINCIPLE OF MARKETING

of 36

Learning OutcomesLearning Outcomes

LEARNING OUTCOMES

of 36

Chapter AimsChapter Aims

At the end of this chapter, students will be able to:

Define the meaning of marketing environment Describe the micro environment that can affect the company’s ability to serve customer.Define the macro environment that can affect the company’s ability to serve customer. Discuss how companies can react to the marketing environment

of 36

Learning OutcomesLearning Outcomes

TOPIC OUTLINES

of 36

Topic OutlinesTopic Outlines

2.1 Definition of Marketing Environment2.2 Organization’s Micro-Environment

2.2.1 The Company2.2.2 Suppliers2.2.3 Competitors2.2.4 Marketing

Intermediaries2.2.5 Customers2.2.6 Public

2.3 Organization’s Macro-Environment

2.3.1 Demographic

2.3.2 Economic2.3.3 Natural

2.3.4 Technological2.3.5 Political2.3.6 Cultural

2.4 Responding to the Marketing Environment

of 36

2.1 Definition of Marketing Environment2.1 Definition of Marketing Environment

DEFINITION OF MARKETING ENVIRONMENT

of 36

2-1: Definition of Marketing Environment

Marketing environment is the actors and forces outside

marketing that affect marketing management’s ability to build and maintain successful relationships

with target customers.

of 36

2.1 Definition of Marketing Environment2.1 Definition of Marketing Environment

MARKETING ENVIRONMENT

of 36

Publics

Marketing Intermediar

ies

Supplier

Competitors

2-2: Organization’s Microenvironment

Customer

of 36

Marketers must work with other company departments such as top management, finance, research and development (R&D), purchasing, operations and accounting.

All the departments have an impact on the marketing department plans and actions, and they should work harmoniously to provide customer value and satisfaction.

2.2.1Organization’s Microenvironment

XCompany

of 36

2.2.2: Organization’s Microenvironment

Suppliers are firms and individuals that provide the resources needed by the company to produce its goods and services. The role of marketers is to make sure that suppliers provide the raw materials according to schedule. Supply shortage or delays can affect sales in the short run and damage customer goodwill in the long run.

Suppliers X

of 36


In order to be successful, a company must provide greater customer value and satisfaction than that provided by its competitors by positioning their offering strongly against dominant companies.

Competitors X

of 36


Marketing intermediaries are firms that help the company to promote, sell, and distribute its goods to final buyers.

They include middlemen, physical distribution firms, marketing services agencies, and financial intermediaries.

Marketing Intermediaries

X

of 36


Customer markets can be divided into five types:

Customers marketsBusiness marketsReseller marketsGovernment marketsInternational markets

CustomersX

of 36


A public is any group that has an actual or potential interest in or impact on an organisation’s ability to achieve its objectives.

XPublics

of 36


Seven types of publics are:

Financial publics Media publics Government publics Citizen action publics Local publics General publics Internal publics

Click on each type of publics to know

further.

Public.....(CONTINUED)

of 36


Financial Publics

They influence the company’s ability to obtain funds such as banks, investment houses, and stockholders.

Financial Publics

of 36


Media PublicsThey are those who carry news features

and editorial opinion such as newspapers, magazines, and radio

and television stations

Media Publics

of 36


Government Publics

Organizations must take into account the government developments such as issues

on safety products.

Government Publics

of 36


Citizen Action Publics

The public relations department can help the organization to keep in touch with the consumer and citizen groups because the

company’s marketing decision may be questioned by

consumer organizations.

Citizen Action Publics

of 36


Local Publics

These are neighbourhood residents and community

organizations whereby large organizations

appoint a community relations officer to

deal with the community.

Local Publics

of 36


General PublicsA company needs to be concerned about the general public’s attitude toward its

products and activities. In order

to build a good image, a company should organize charity shows.

General Publics

of 36


Internal PublicsThese include

workers, managers, and board of

directors. When employees feel good about their company, this

positive attitude spills over to

external publics.

Internal Publics

of 36

Culture

Technological

Economic

Natural

2.3: Organization’s Macroenvironment

Political

of 36

Demography is the art of studying the population based on age, location, race, and gender.

Examples of demography are:

Age structure The baby Boomers Generation X Generation Y

Changing family

2.3.1: Organization’s Macro-environment

Demographic

of 36


Economic environment consists of factors that affect consumer purchasing power and spending patterns.

The changes in income will suggest that real income will continue to rise or fall.

Economic

of 36


Natural environment involves the natural resources, which are used as inputs in the marketing activities.

Shortages of natural resources such as water and forests usually occur and these resources have to be used wisely to prevent wastage.

Increase in pollution such as disposal of chemical waste can create a large market for pollution control.

Natural

of 36


Forces that create new technologies can create new markets and opportunities for the marketers.

There is fast pace of technological change and scientists are working on a wide range of newer technologies that challenge not only technically but also commercially in order to make practical and affordable products.

Technological

of 36


The government develops public policy to guide business for the good of society as a whole.

The legislation exists for a number of reasons:

to protect companies from each other, to protect consumers from unfair business practicesto protect the interest of society against immoral business behaviour

Political

of 36


Cultural environment is made up of institution and it affects the society’s basic values, perceptions, and behaviour.

The cultural characteristics can affect marketing decision making.

Culture

of 36

1.3 ACTIVITY 11.3 ACTIVITY 1

CLASS ASSIGNMENT [GROUP ACTIVITY]* For BDK 101

Time required: 60 minutes

1.List and discuss the demographic factors.(s5-1)2.Explain 5 types of customer market3.Explain macro-environment & micro-environment

Present it to the class

BDK101 02 PRINCIPLE OF MARKETING

Documents

Transcript of BDK101 02 PRINCIPLE OF MARKETING