Marketing Environment
The internal and external influences
which affect marketing decision-making and
have an impact on its performance.
Types of competitive structures
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Monopoly
Oligopoly
Monopolistic competition
Pure competition
Types of competitive structures
Monopoly
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One firm completely controls the supply and price of a product
Cost of entry is quite high
Examples: Railroad business
Oligopoly
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Few sellers control the major supply of the product
Entry barriers are high
Action of one players affect other players
Marketing and advertising are the key features
Example: Airline Industry
Monopolistic Competition
 Many firms compete with one another
 Each firm has small market share
 Marketers try to differentiate their offer from other
Example: Textile Industry
Pure Competition
 Large number of seller compete
 No single player can influence the supply or price of
a product
 Entry barriers are negligible
Example: Unregulated agriculture market
Business Environment of a firm
Firm
Internal Environment
Micro Environment
External Environment
Macro Environment
Internal Environment
Human
Resources
R&D
Production
Facility
Internal
Environment
Company
Image
Company
Location
Financial
Capability
Micro Environment
Customers
Micro
Environment
Marketing
Suppliers
Intermediaries
Macro Environment
Demographic
Economics
Natural
Macro
Environment
Socio–
Cultural
Political
Legal
Technological
Macro environmental Factor
Demographic Environment: It is a branch of sociology that
deals with the study of the characteristics of human population such as
size, growth, density, gender, and material status.
Consumer groups:
* Infants
* Children
* Young Adults
* Adults
* Senior citizens
Some other factors:
- Women
- Singles
- Occupation & literacy
- Location
- Cultural diversity
Marketing Environment
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Macro Environmental Factors:* Political Environment
* Economic Environment
* Socio-Cultural Environment
Political Environment
Domestic Politics:
Organizations help in electing
politicians & try to influence domestic politics & lobby against
proposed laws which can harm their business.
International Politics:
It plays a vital role for MNCs &
exporters. MNCs try to influence foreign politicians & Govt.
through their domestic governments.
Eg- AT & T, IBM employed full time lobbyist
to gain Japanese contracts.
Economic Environment
General Economy
Business Cycle
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Growth/ Prosperity
Recession
Depression
Recovery
Buying Power
Financial Sources- Income, Credit & Wealth
Willing To Spend
Socio-Cultural
It refers to:
 Attitude
 Belief
 Values
 Lifestyle of individual in a society
Marketing Environment
Macro Environmental Factors:
 Technology
 Natural
 Legal Environment
Indian Business Environment & MNCs in
India.
Technology
Technology is regarded as the use of
scientific knowledge & tools to solve
specific problems & perform tasks in
effective manner.
It is beneficial & dangerous for the
mankind depends on the use.
Impact of Technology
 Product
 Price
 Promotion
 Advertising
 Distribution
Natural
 Resources
 Weather
 Pollution
 Government
intervention
Legal
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Consumer protection (1986)
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State regulatory agencies
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Non- government regulatory agencies
Indian Business Environment
& MNCs in India
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MNCs have entered the Indian market either in
alliance with local companies with local companies
or through fully owned subsidiaries.
MNCs help in improving technology through
technology transfer.
MNCs help in national human resource
development through training their employees in
the host country.
Business Cycle
Growth/Prosperity
Employment rate is high
Interest rate is low
Inflation is low
Income is high
Recession
Employment rate is Low
Buying decision depend on price
Continue…
Depression
Unemployment is very high
GNP
Recovery
Move recession or recovery to growth
Purchase power increase
Unemployment going to decrease