The Marketing Environment 1

The Rise and Fall and Rise of Kodak

• Overview of Kodak's historical performance in the photography industry.

  • Importance of understanding Kodak's journey to grasp its impact on the photography market.

Kodak's Responses to Changes in the Photography Industry

1. Adaptation: Examine how Kodak adapted its strategies in response to new technology and competition.

2. Loss of Customers: Analyze factors that led to customer attrition during shifts in market preferences.

3. Bankruptcy Recovery: Discuss steps taken by Kodak to recover from bankruptcy and re-establish its brand.

Marketing Environment Overview

• Definition: The marketing environment encompasses all internal and external factors affecting a firm's operations and customer relationships.

  • Microenvironment (Internal): Directly affects the organization.

  • Macroenvironment (External): Broader forces impacting the industry.

Components of the Marketing Environment

• The organization must monitor and adapt to changes in both micro and macro environments to remain competitive.

Microenvironment (Internal Factors)

1. Organization

   • Involves owners, investors, employees and top management.

   • Direction provided by management through mission, vision, goals and policies.

   • Collaboration between departments ensures achievement of objectives.

2. Suppliers

   • Provide necessary resources for production of goods and services.

   • A healthy relationship with suppliers is crucial for operational efficiency.

3. Customers

   • The essential element for business sustenance; their demands drive market dynamics.

   • Marketers must constantly monitor and fulfill customer needs to maintain loyalty.

4. Marketing Intermediaries

   • Entities helping in the distribution and selling of products.

   • Categories of intermediaries:

     • Wholesalers: Resell goods from manufacturers.

     • Retailers: Sell directly to consumers.

     • Distributors: Buy goods for resale.

     • Agents/Brokers: Sell on behalf of others for commission.

5. Competitors

   • Rival firms offering similar or alternative products/services.

   • Importance of identifying direct and indirect competitors for strategic planning.

Macroenvironment (External Factors)

• Encompasses broader influences beyond company control.

• Six Key Factors:

  1. Demographics: Population characteristics affecting product demand.

  2. Economics: Economic conditions influencing buying power and spending.

  3. Sociocultural: Social beliefs and practices impacting customer preferences.

  4. Technological: Technological advancements shaping market viability.

  5. Political Forces: Government and political stability affecting business operations.

  6. Ecological Forces: Environmental considerations affecting sustainability in business operations.

Understanding Market Dynamics

• Importance of demographic analysis for identifying target customers.

• Economic trends that affect consumer pricing and spending patterns.

• Social values and norms influencing business practices and marketing strategies.

• Technological evolution marking a transformative impact on industry standards.

• Political environments dictating laws and regulations influencing business activities.

• Ecological consciousness driving a need for sustainable business practices.