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Marketing Environment, Demographic is the study of human populations in…
Marketing Environment
A marketing environment encompasses all the internal external factors that drive and influence an organization's marketing activities. Marketing managers must stay aware of the marketing environment to maintain success and tackle any threats or opportunities that may affect their work.
The marketing environment is made up of :
- A microenvironment - suppliers, intermediaries, customer, competitors, publics, and other may work with or against the company.
- A macroenvironment - demographic, economic, natural, technological, political, pose threats, and effect ,the company's ability to serve customers and develop lasting relationships with them.
Microenvironment
The company's microenvironment includes forces close to company that affect its ability to serve consumers, such as other company departments channel, members, suppliers, competitors, and publics.
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5) Competitors
- Competitors are other organizations that
are competing with the company for the same consumers with the intention of fulfilling the same needs and wants.
- The competitive environment includes all organizations that could possibly satisfy the needs and desires of the organization's target market.
2) Suppliers
Suppliers
- An important link in the company's overall customer "value delivery system"
- They provide the resources needed by the company to produce its goods and services.
- Suppliers developments can seriously affect marketing
4) Customers
- The company needs to study its customer markets
closely. The customers or buyers are the final individual
or firms that buy and use the product
ii) Business markets : Buy goods an services for further processing or for use in their production process.
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i) Consumer markets : Consist of individuals and households
that buy goods and services for personal consumption.
iv) Government market : Are made of government agencies that buy goods and services to produce public services or transfer the goods and services to other who need them.
v) International markets : Consist of these buyers in other countries, including consumers, producers, resellers and governments.
1) Company
The Company
- Company or organization includes top management sets the company's mission, objectives, broad strategies, and policies.
- Marketing management takes other company, finance, research and development (R&D), purchasing manufacturing and accounting.
6) Publics
- Any group that has an actual or potential
interest in or impact on an organization's ability to achieve its objectives.
iv) Citizen action publics : A company's marketing decisions may be questioned by consumer organizations, environmental groups, minority groups and other, Its public relations department can help it stays in touch with cosumer and citiizen groups.
v) Local public : Include neighborhood residents and community organizations. Large companies usually appoint a community, attend meetings, answer questions, and contribute to worthwhile causes.
iii) Government publics : Management must take government developments into account. Marketers must often consults the advertising, and others matters.
vi) General public : A company needs to be concerned about the general public's attitude towards its products and activities. The public's image of the company affects its buying.
ii) Media publics : Carry news, features and editorial opinions. They include newspapers, magazines, and radio and television stations.
i) Financial publics : Influence the company's ability to obtain funds. Banks, investment houses, and stakeholders are the major financial publics.
vii) Internal public : Include workers , managers and the board of directors. Large companies use newsletters and other means to inform and motivate their internal publics. When employees feel good about their company, this positive attitude spills over to external publics.
Macroenvironment
The company and all the other actors operate
in a larger macroenvironment of forces that shape opportunities and pose threats to the company.
3) Natural Environment
- The natural environment involves the natural resources
that are needed as inputs by marketers or that are affected by marketing activities. Environment concern have grown steadily during the past two decades/
- Marketers should be aware of several trends in the natural environment. Such as :
i) Shortages of raw materials
ii) Renewable resources
5) Political Environment
- The political environment consist of laws, government agencies and pressure groups that influence and limit various organizations and individuals in each society
- Marketing decisions are strongly affected by development in the political environment
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2) Economic Environment
Some countries have :
i) Subsistence economies : they consume most of their own agriculture and industrial output. These countries offer new market opportunities.
ii) Industrial economies : At the other extreme are industrial economies, which constitute rich markets for many kinds of goods. Marketers must pay close attention to major trends and consumer spending patterns, both across and within their world markets.
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6) Cultural Environment
- Affect a society's basic values, perceptions, preferences, behaviours and ways of life.
- People grow up in a particular society that shapes their basic belief and values.
- Views that express values :
1) Social conduct , morals & manner
2) Language
3) Religion
4) Rituals
5) Laws and belief systems
6) The arts and tradition
- Demographic is the study of human populations in terms of size, density, location, age, gender, race, occupation, family, structure, geographic, population shifts, education characteristic and other statistics.
- Baby boom : The major increase in the annual birthrate following World War II and lasting until 1960s.
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