Module 2

Marketing environment

Marketing envt

Broadly classified into 2 groups Micro envt Macro envt Micro envt is the controllable envt Where as the macro envt Both micro and macro factors affect the organisation

Companys micro envt

The company Suppliers Marketing intermediaries Customers Competitors publics

company

In designing marketing plans marketing management communicates and takes help from other dept like Top management Finance Research and development Purchasing Operations And accounting

suppliers

Suppliers form an important in the companys customer value delivery system Marketing mangers should take care of all supply related issues

Marketing intermediaries

Firms that help the company to promote , sell, and distribute its goods to final buyers they include resellers, physical distribution firms-help the company to stock and move goods from their points of origin to their destinationslike ware house marketing service agencies-are the marketing research firms , advertising agencies, media firms, and marketing consulting firms that help the company to achieve the target and financial intermediaries-includes banks, credit companies, insurance companies, and other business that help financial transaction

Company needs to study 5 customer markets closely Consumer market consists 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 Resellers market where buying f goods and services and reselling at a profit Government markets are made up of government agencies that buy goods and services to produce public services or transfer the goods and services to other who need them Finally international markets consists of these buyers in other countries, including consumers, producers, resellers, and governments

customers

COMPETITORS

To succeed the completion the company should provide greater customer value and satisfaction than its competitor do i.e. adapt to the needs of the customers in the market

publics

Any group that has an actual or potential interests in or impact on an organisations ability to achieve its objectives Financial publics influence the companys ability to obtain funds Media publics carry news, features and editorial opinion Govt publics-change in govt and rules and regulations citizen-action publics-like consumer organisations Local publics-include neighborhood residents and community organisations General public-attitude of general publics towards products and its features Internal publics- include workers, managers, volunteers, and the board of directors

COMPANY

MARKETING INTERMEDIARIES

CUSTOMERS

MARKETING

SUPPLIERS

COMPETITORS

PUBLICS

The companys macro envt

Consists of larger envt and forces that shape opportunities and pose threats to the company Which is not controllable also Consist of the following: Demographic envt Economic envt Natural forces Technological forces Political forces Cultural forces

Demographic envt

The study of human populations in terms of size density location age gender race occupation and other statistics Why to consider demographic variable? Because it involves people and people make up markets

Economic environment

Factors that affect consumer buying power and spending patterns Change in income-affect the company directly Includes change in GDP and GNP Changing consumer spending patternslike for food, housing, cloth, health care

Natural envt

Natural resources that are needed as inputs by marketers or that are affected by marketing activities Like shortage of raw materials-renewable and non-renewable resources Increased pollution by the manufacturer Increased govt intervention Envtly suitable strategies

Technological environment

Forces that create new technologies Creating new product and market opportunities One of the most dramatic force shaping the destiny Like laptop computers Antibiotics Mobile phones Organ replants Internet

Political envt

Laws-regulating business and increasing legislation Govt agencies-changing govt agency And pressure groups that influence and limit various organisations and individuals in a given society Increased emphasis on ethics and socially responsible actions

Cultural envt

Persistence of cultural values Peoples view of themselves Peoples view of others Peoples vie of organisations Peoples view of society Peoples view of nature Peoples view of universe-people vary in their belief about the origin and their place in it Institutions and other forces that affect societys basic values, perceptions, preferences, and behaviours

Marketing Research
Research is the only tool an organisation has to keep in contact with its external operating environment. In order to be proactive and change with the environment simple questions need to be asked: o How are customer needs changing? Can you meet these changing needs? What do your customers think about existing products or services? o How are competitors operating within the environment? Are their strategies exceeding or influencing yours? What should you do? o How are macro and micro environmental factors influencing your organisation? Again how will you react?

Definition of MR
Marketing research is defined as the systematic design, collection ,analysis, and reporting of data relevant to specific marketing situation facing an organisation

Steps of research
Defining the problem and research objective Developing the research plan for collecting information Implementing the research plan collecting and analysing the data Interpreting and reporting the findings

Identifying the problem

First and foremost step Should understand the problem properly Defining the problem and research objective are the hardest step in the research process

Types of objectives in MR
Exploratory research-marketing research to gather preliminary information that will help define problems and suggest hypothesis Descriptive research-marketing research to better describe marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of consumers Casual research- marketing research to test hypothesis about cause-and- effect relationships

Developing the research plan

In this researchers must determine the exact info needed The research plan outlines the sources of existing data and spells out the specific research approaches contact methods sampling plans and instruments that researchers will use to gather new data

Research should ask for following info

The demographic, economic, and lifestyle characteristics Consumer-usage patterns for specific pdts Retailer reactions to new packaging Forecast of sales of both new and current packages

Collecting of data
Secondary data-info that already exists somewhere, having been collected for another purpose Primary data-info collected for the specific purpose at hand

Observational research
Gathering of primary data by observing relevant people, actions, and situations

Survey research
The gathering of primary data by asking people questions about their knowledge , attitudes, preferences, and buying behaviour

Online marketing research

Collecting primary data through internet surveys and online focus group

How to contact
Mail Telephone And personal interview Focus group interview

What is a sample?
A segment of the population selected for marketing research to represent the population as a whole

Types of sample

Probability sample Non probability sample

Probability sample
Simple random sample-every member of the population has a known and equal chance of selection Stratified random sample-the population is divided into mutually exclusive groups (such as age groups) and random samples are drawn from each group Cluster (area) sample-the population is divided into mutually exclusive groups (such as blocks), and the researcher draws a sample of the groups to interview

Nonprobability sample
Convenience sample-the researcher selects the easiest population members from which to obtain information Judgment sample-the researcher uses his or her judgment to select population members who are good prospects for a accurate information Quota sample-the researcher finds and interviews a prescribed number of people in each of several categories

Research instruments
Used in collecting primary data Questionnaire And mechanical devices-cameras, ATM screen Questionnaire is the most common instrument Two types of questions used-closed ended and open ended

Implementing the research plan

Putting the plan into action Involves collecting Processing And analysing the information Data collection can carried out companys own staff or outsiders Data collection phase is the most expensive and most subject to errors After collecting the data processing and analysing so as to get an complete information Also need to check for data accuracy and completeness Next is to tabulate the result and compute avg and other statistical measures

Interpreting and reporting the findings

Now the researcher should interpret the findings Draw conclusions And report them to management Proper interpretation is must since decision making is done based on the interpretation

Characteristics of a Service
Lack of ownership Intangibility Inseparability Perishability Heterogeneity

Service quality is top priority for FedEx

Service provided by Air France

Promising service quality

PRODUCT

Service mix

PRICE

PEOPLE

PHYSICAL EVIDENCE

PROCESS

PROMOTION

PLACE