TOPIC 2 MP

Microenvironment

  • Definition: Comprises all actors close to the company that affect, positively or negatively, its ability to create value for customers.

Internal Environment

  • Involves the relationship between Marketing Management and other departments within the company.

  • Critical internal groups include:

    • Top management

    • Finance

    • Research and Development (R&D)

    • Purchasing

    • Operations

    • Accounting

  • Harmony among these groups is required to deliver superior customer value and relationships.

Suppliers

  • Suppliers provide essential resources for producing goods and services.

  • Treated as partners to enhance customer value.

  • Marketing managers must monitor:

    • Supply availability (e.g., shortages, delays)

    • Labor strikes

    • Material prices

  • Example: Givaudan is a major supplier for companies like Unilever and P&G.

  • Current Issue: Nike facing potential sneaker shortages due to the COVID crisis in Vietnam.

Ethical Considerations in Supply Chains

  • Example: Nestlé, an FMCG leader, faced criticism for sourcing fish for its Fancy Feast from slave ships.

  • Highlights the need for companies to scrutinize their supply chains to avoid scandals and negative publicity.

Marketing Intermediaries

  • Types of Marketing Intermediaries:

    • Resellers: Distribution firms (wholesalers, retailers) aiding in finding customers and making sales (e.g., supermarkets, convenience stores).

    • Physical Distribution Firms: Ensure goods move from origin to destination (e.g., logistics companies).

    • Marketing Services Agencies: Assist in targeting and promoting products (e.g., advertising agencies, market research firms).

    • Financial Intermediaries: Businesses that provide financial solutions (e.g., banks, insurance).

  • Role: Marketing intermediaries support the promotion, selling, and distribution of products to final buyers.

Customer Markets

  • Potential customer markets a company may target include:

    • Consumer markets: Individuals and households for personal consumption.

    • Business markets: Goods/services for further processing.

    • Reseller markets: Goods/services to resell at a profit.

    • Government markets: Agencies purchasing for public services.

    • International markets: Buyers outside the home country.

Competitors

  • Marketers must strategically position their offerings against competitors’ products.

  • Types of competitors include:

    • Direct competitors: Manufacturers of similar products.

    • Indirect competitors: Dissimilar products meeting the same need.

Publics

  • Publics are groups with actual or potential interest in or impact on the organization.

  • They can either aid or hinder the achievement of company goals.

  • Important Types of Publics Include:

    • Financial publics: Affect funding and financial management.

    • Media publics: Influence public perception and company news.

    • Government publics: Affect or regulate company activities.

    • Local publics: Community residents and organizations.

    • Citizen-action publics: Consumer and environmental groups.

    • General public: Perception of the company by the public may influence buying behavior.

    • Internal publics: Employees and management that shape workplace dynamics and culture.

Macroenvironment Factors

  • Natural Environment: Focus on sustainability and environmentally-friendly practices.

    • Issues: Shortages of resources, pollution, and need for sustainable strategies (e.g., Levi's Eco jeans).

  • Technological Environment: Rapid technological advancements shape marketing strategies and product offerings.

    • Example: Robotic scientists speeding scientific discovery and developments in gaming technology.

  • Economic Environment: Changes in consumer purchasing power and spending patterns affect market strategies.

    • Example: Tata Motors targeting India's middle class with affordable cars.

  • Political/Legal Environment: Laws and regulations governing business behavior to protect interests and prevent exploitation.

    • Focus on issues like brand protection, digital marketing regulations, and rights.

  • Cultural Environment: Societal values and beliefs influencing consumer behavior.

    • Example: Kotex transforming perceptions around menstruation in Russia through a digital support platform.