2nd Class

3-1
The Global Marketing

Environment
3-2
Marketing Environment
• All the actors and forces influencing the
company’s ability to transact business
effectively with it’s 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 3-3
Demographic
Company
Cultural Economic
Publics Suppliers
Company
Customer
Competitors s Natural
Political
Intermediaries
Technological
3-4
The Microenvironment
Company
Publics Forces Affecting a Suppliers

Company’s Ability to
Serve
Customers
Competitors Intermediaries
Customers
The Company’s
3-5
Microenvironment
• Company’s Internal Environment- functional
areas such as top management, finance, and
manufacturing, etc.
• Suppliers - provide the resources needed to

produce goods and services.
• Marketing Intermediaries - help the company

to promote, sell, and distribute its goods to
final buyers.
The Company’s
3-6
Microenvironment
• Customers - five types of markets that
purchase a company’s 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 company’s ability
to achieve its objectives.
Customer Markets 3-7
International Consumer
Markets Markets
Company
Government Business
Markets Markets
Reseller
Markets
The Macroenvironment 3-8
Demographic
Cultural Forces that Shape Economic

Opportunities
and Pose Threats
to a Company
Political Natural
Technological
The Company’s 3-9
Macroenvironment
• Demographic - monitors population in

terms of age, sex, race, occupation,
location and other statistics.
• Economic - factors that affect consumer

buying power and patterns.
• Natural - natural resources needed as

inputs by marketers or that are affected
by marketing activities.
Key U.S. Demographic Trends 3-10
Changing Age Structure

Population is getting older
Changing Family Structure

Marrying later, fewer children,
working women, and nonfamily households
Geographic Shifts
Moving to the Sunbelt and suburbs (MSA’s)
Increased Education
Increased college attendance
and white-collar workers
Growing Ethnic and Racial Diversity

73% Caucasian, 12% African-American,
10% Hispanic & 3.4% Asian
Economic Environment 3-11
Economic Changes
Development Key in Income
Economic
Concerns for
Marketers
Changes
in Consumer
Spending
Patterns
Natural Environment 3-12
More Government
Intervention
Factors
Affecting
Higher Pollution the Shortages of
Levels Natural Raw Material
Environment
Increased Costs
of Energy
The Company’s 3-13
Macroenvironment
• Technological - forces that create

new product and market
opportunities.
• Political - laws, agencies and groups

that influence or limit marketing
actions.
• Cultural - forces that affect a society’s

basic values, perceptions,
Technological Environment 3-14
Rapid Pace of High R & D

Change Budgets
Issues in the Technological

Environment
Focus on Minor Increased

Improvements Regulation
Political Environment 3-15
Increased Changing
Legislation Key Enforcement
Trends in the
Political
Environment
Greater
Concern for
Ethics
Cultural Environment 3-16
Of
Oneself
Of Of
the Universe Views Others
That Express
Of Values Of
Nature Organizations
Of
Society
3-17
Marketing Research
and
Information Systems(MKIS)
The Importance of Information 3-18
Marketing
Environment
Why
Information Competition
Customer
Is
Needs Needed
Strategic
Planning
What is a Marketing 3-19
Information System (MKIS)?
• Consists of people, equipment, and

procedures to gather, sort, analyze,
evaluate and distribute needed,
timely, and accurate information to
marketing decision makers.
• Function: Assess, Develop and

Distribute Information.
Functions of a MIS: 3-20
Developing Information
Obtains Needed Information for Marketing Managers

From the Following Sources
Internal Data
Collection of Information from Data Sources Within the Company
From: Accounting, Sales Force, Marketing, Manufacturing, Sales
Marketing Intelligence
Collection and Analysis of Publicly Available Information about
Competitors and the Marketing Environment
From: Employees, Suppliers, Customers,
Competitors, Marketing Research Companies
Marketing Research
Design, Collection, Analysis, and Reporting of Data about a Situation
3-21
Market Research process
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
Marketing Research Process 3-22
Step 1. Defining the Problem &

Research Objectives
•Gathers preliminary information

Exploratory that will help define the problem
Research and suggest hypotheses.
Descriptive •Describes things as consumers’

Research attitudes and demographics
or market potential for a product.
Causal •Test hypotheses about cause-

Research and-effect relationships.
Step 2. Develop the Research Plan
Determine the Specific Information Needed
Secondary Primary
Information that has Information collected

been previously for the specific purpose
collected. at hand.
Both Must Be:

Relevant
Accurate
Current
Impartial
3-24
Research Approaches
• Observational and ethnographic

• Focus group
• Survey
• Behavioral data
• Experimental research
3-25
Sampling Plan
• Sampling unit: Who is to be surveyed?

• Sample size: How many people should be surveyed?
• Sampling procedure: How should the respondents be
chosen?
Primary Data Collection Process 3-26
Step 3. Collect the Information
Research Instruments
Questionnaire Mechanical Devices

• What to ask? • People Meters
• Form of each • Grocery Scanners
question? • Galvanometer
• Wording?
• Tachistoscope
• Ordering?
3-27
Contact Methods
• Mail contacts
• Telephone contacts
• Personal contacts
• Online contacts
3-28
4. Analyze the Findings
• Use Statistics
• SPSS
• Tables, Charts, Diagrams etc.
• Parametric and Non-Parametric Tests
Step 5. Present the Findings
Interpret the Findings
Draw Conclusions
Report to Management
3-30
6. Making the Decisions

3-31
What Is a
Marketing Decision Support System
(MDSS)?
• A marketing decision support system is a
coordinated collection of data, systems, tools, and
techniques with supporting hardware and software
by which an organization gathers and interprets
relevant information from business and
environment and turns it into a basis for marketing
action.
3-32
BIG DATA
The Data Equation 3-33
Oceans of
Data
Ocean Biodiversity Informatics, Hamburg 29 Nov

Rivers of
Information

Streams of
Knowledge

Drops of
Understanding

DIGITAL
MARKETING
BUSINESS
ANALYTICS
 Big data to refer to massive amounts of business data
from a wide variety of sources, much of which is
available in real time, and much of which is uncertain or
unpredictable. IBM calls these characteristics volume,
variety, velocity, and veracity.
Big Data
• is high volume, high velocity and high- variety information assets that
demand cost effective, innovative form of information processing for
enhanced insights and decision making
Why is Big Data important ?
• More Data results in more accurate analysis
• More accurate analysis results into better decision making
• Better decisions results into
• Better operational efficiencies
• Cost reductions
• Reduced risks
BIG DATA ANALYTICS
“In God we trust. All others must bring data.” – W. Edwards Deming
“Numbers have an important story to tell. They rely on you to give them a voice.”
– Stephen Few
“Information is the oil of the 21st century, and analytics is the combustion
engine.” – Peter Sondergaard
“It’s easy to lie with statistics. It’s hard to tell the truth without statistics.” –
Andrejs Dunkels
Volume of Data
1 KB 1000 Bytes
1 MB 1000 KB
1 GB 1000 MB
1 Tera Byte ( TB) 1000 GB
1 Peta Byte (PB) 1000 TB
1 Exa Bytes (EB) 1000 PB
1 Zetta Byte (ZB) 1000 EB
1 Yotta Byte (YB) 1000 ZB

Factors responsible for large volume of data
• Transaction based data

• Unstructured data – web, social media, video,…..
• Sensors and Machine To Machine communication generate data
• Storage costs have decreased
Velocity
• Data streams in at high speed. Hence, it is important to store them in a

timely manner
• Large quantity of data in very short period of time
• However, Speed of data is highly inconsistent
• Daily, seasonal and event triggered peak data loads
Variety
• Data is generated in different formats

• Structured data resides in traditional Data bases and file systems
• Unstructured data : Text documents, email, video, audio, log files, ....
Other characteristics of Big Data
• Veracity
• Biases, Noises and abnormality in data
• “Is the data being stored, mined and analysed meaningful and pertinent to the
problem under consideration”
• Validity
• Accuracy and correctness of the data
• Volatility
• How long is the data valid?
• How long should it be stored?
• Variability
• Is related to Data flows. Data flows can be highly inconsistent with periodic peaks
Strategic Marketing Planning
What is Strategic Planning?
 It is the managerial process that helps to
develop a strategic and viable fit between
the firm’s objectives, skills, resources with
the market opportunities available. It helps
the firm deliver its targeted profits and
growth through its businesses and
products.
How to go about it?
 Defining the corporate mission
 Establishing SBUs
 Allocating resources for SBUs
 Planning for new business
The Business Vision & Mission
Ch 2 -53
Vision
“What do we want to become?”
Ch 2 -54
Copyright 2007 Prentice Hall
Vision
Clear Business
Vision
Comprehensive
Mission Statement
Ch 2 -55
Vision/Mission Statements
 Statements that explain who we are
 Type of organization
 Products/services
 Needs we fill
 Statements that explain our direction, our
purpose, our reason for being
 What difference do we make?
Business Vision Statement
 A guiding philosophy
 Consistent with organizational value
 Influenced by the strengths and
weaknesses of the business
Vision vs. Mission
 The vision is more broad and future oriented

– the goal on the horizon
 The mission is more focused – how you will
get to the horizon
Examples: Mission and Vision Statements
Microsoft Corporation
Empower people
through great software
anytime, anyplace, and
on any device.
59
LEVELS OF STRATEGY
 Corporate level
• Determine overall scope of the organisation
• Add value to the different business units
• Meet expectations of stakeholders
 Business level (SBU)
• How to compete successfully in particular markets
 Operational
• How different parts of organisation deliver
strategy
Three levels of the strategy
1. level: The corporate level
At this level the fundamental task is to develop
a balanced portfolio of businesses which will
achieve the goals of the corporation and
satisfy its stakeholders.
2. level: The strategic business unit level (SBU)
At this level the business, or set of activities is
given and the major task for strategic planner
at this level is for business to succeed against
competitors and also satisfy corporate
success criteria.
3. level: The functional level:
At this level the major task is to provide an
appropriate functional strategies ( finance and
accounting, marketing, R+D, production,
personnel) for SBU or corporate level strategy.
SBU
 It is a company within a company
 The business is differentiated from the rest
of the company
 It has its own set of competitors
 It is a separate profit centre
Characteristics of SBUs
 It is a single business or collection of related

businesses
 It has its own set of competitors
 It has a leader responsible for strategic
planning and profitability
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from 2-63
5 questions that the firm must
ask itself
 What is our business?
 Who is our customer?
 What does our customer need?
 What will our business be?
 What should our business be?
The Planning Process
 Analysing Market opportunities
 Developing Marketing strategies
 Planning Marketing Programs
 Managing the Marketing Effort
Figure 2.2 The Strategic Planning
Gap
Characteristics of
Core Competencies
 A source of competitive advantage
 Applications in a wide variety of markets
 Difficult to imitate
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
Porter’s Generic Strategies
Overall cost leadership
Differentiation
Focus
MCKINSEY’S 7S FRAMEWORK
The Boston Consulting
Group’s Growth-Share Matrix
Market growth rate
20%- Stars Question marks
?2
4
18%-
16%-
14%-
3 ? 1
12%- 5
10%-
8%- Cash cow Dogs
6%-
4%-
8
2%- 6
0 7
10x 4x 2x 1.5x 1x .5x .4x .3x .2x .1x
Relative market share
Market Attractiveness:
Competitive- Position Portfolio
Classification
BUSINESS STRENGTH
MARKET ATTRACTIVENESS
Strong Medium Weak

5.00 Joints
High
Aerospace
Hydraulic fittings
pumps
3.67
Low Medium
Clutches
Fuel
Flexible pumps
diaphragms
2.33
Relief
valve
1.00
5.00 3.67 2.33 1.00
Invest/grow Selectivity/earnings Harvest/divest
Strategies for SBUs
 Build--increase market share
 Hold--preserve market share
 Harvest--increase short-term cash flow
 Divest--Sell or liquidate
Three Levels of Strategy in
Organizations
Corporate-Level Strategy:
What business are we in?
Corporation
Business-Level Strategy:
How do we compete?
Textiles Unit Chemicals Auto Parts Unit

Unit
Functional-Level Strategy:
How do we support the business-level
strategy?
Finance R&D Manufacturing Marketing
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.

75
3-76
76
Three Intensive Growth Strategies:
Ansoff’s Product/Market Expansion
Grid
Current New
products products
1. Market- 3. Product-
Current penetration development
markets strategy strategy
New 2. Market- (Diversification

markets development
strategy strategy)
Environmental Analysis
Ch 6 -80
Copyright 2007 Prentice Hall

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3-1

The Global Marketing

Publics Forces Affecting a Suppliers

• Suppliers - provide the resources needed to

• Marketing Intermediaries - help the company

• Competitors - those who serve a target

• Publics - any group that perceives itself

Cultural Forces that Shape Economic

• Demographic - monitors population in

• Economic - factors that affect consumer

• Natural - natural resources needed as

Changing Age Structure

Changing Family Structure

Growing Ethnic and Racial Diversity

• Technological - forces that create

• Political - laws, agencies and groups

• Cultural - forces that affect a society’s

Rapid Pace of High R & D

Issues in the Technological

Focus on Minor Increased

Information System (MKIS)?

• Consists of people, equipment, and

• Function: Assess, Develop and

Obtains Needed Information for Marketing Managers

Market Research process

Step 1. Defining the Problem &

•Gathers preliminary information

Descriptive •Describes things as consumers’

Causal •Test hypotheses about cause-

Step 2. Develop the Research Plan

Determine the Specific Information Needed

Information that has Information collected

Both Must Be:

• Observational and ethnographic

• Sampling unit: Who is to be surveyed?

Step 3. Collect the Information

Questionnaire Mechanical Devices

4. Analyze the Findings

Step 5. Present the Findings

Interpret the Findings

6. Making the Decisions

Ocean Biodiversity Informatics, Hamburg 29 Nov

Ocean Biodiversity Informatics, Hamburg 29 Nov

Ocean Biodiversity Informatics, Hamburg 29 Nov

Ocean Biodiversity Informatics, Hamburg 29 Nov

1 Tera Byte ( TB) 1000 GB

1 Peta Byte (PB) 1000 TB

1 Exa Bytes (EB) 1000 PB

1 Zetta Byte (ZB) 1000 EB

1 Yotta Byte (YB) 1000 ZB

• Transaction based data

• Data streams in at high speed. Hence, it is important to store them in a

• Data is generated in different formats

“What do we want to become?”

 The vision is more broad and future oriented

 It is a single business or collection of related

Overall cost leadership

20%- Stars Question marks

Strong Medium Weak

Textiles Unit Chemicals Auto Parts Unit

Finance R&D Manufacturing Marketing

Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.

New 2. Market- (Diversification

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