MIDTERMS SALES LEC
S A L E S A N D M A R K E T I N G MIDTERM LECTURES
M A R K E T E N V I R O N M E N T V
Definition of Market Environment
The market environment refers to the factors and forces that affect a firm’s ability to build and maintain successful relationships with customers.
Three Levels of the Environment:
Micro (internal) environment: Small forces within the company affecting its ability to serve customers.
Meso environment: The industry in which a company operates and the industry’s market(s).
Macro (national) environment: Larger societal forces affecting the microenvironment.
M I C R O - E N V I R O N M E N T
Refers to forces close to the company that affect its ability to serve customers.
Includes:
The company itself
Suppliers
Marketing intermediaries
Customer markets
Competitors
Publics
T H E C O M P A N Y
The internal environment consisting of all departments such as:
Management
Finance
Research and Development
Purchasing
Operations
Accounting
Each department influences marketing decisions.
S U P P L I E R S
Suppliers are crucial for company operations;
Even slight delays can lead to customer dissatisfaction.
Marketing managers need to monitor supply availability and trends to ensure timely product delivery.
M A R K E T I N G I N T E R M E D I A R I E S
Refers to:
Resellers
Physical distribution firms
Marketing services agencies
Financial intermediaries
These entities help promote, sell, and distribute products to final buyers.
R E S E L L E R S
Resellers hold and sell the company’s products.
Examples include retail chains such as Wal-Mart, Target, Best Buy, etc.
P H Y S I C A L D I S T R I B U T I O N F I R M S
Include warehouses that store and transport products.
Marketing services agencies conduct:
Marketing research
Advertising
Consulting
F I N A N C I A L I N T E R M E D I A R I E S
Institutions that include:
Banks
Credit companies
Insurance companies
O T H E R A S P E C T S O F M I C R O - E N V I R O N M E N T
C U S T O M E R S
Different types of customer markets include:
Consumer markets
Business markets
Government markets
International markets
Reseller markets
Types of Customer Markets
Consumer Market: Individuals buying for personal use.
Business Market: Firms buying goods/services for production.
Reseller Market: Businesses purchasing goods to resell for profit.
G O V E R N M E N T M A R K E T
Comprises government agencies buying goods for public services or redistribution.
International Markets: Buyers from other countries including all previous categories.
C O M P E T I T O R S
Include companies with similar offerings.
To remain competitive, a company needs to identify its biggest competitors and establish a strategic advantage.
P U B L I C S
Local publics include neighborhood/community organizations assessing a company’s local impact.
Changes in the general public's attitudes can significantly affect sales.
M A C R O A N D M E S O E N V I R O N M E N T W E E K V I
M A C R O - E N V I R O N M E N T
Comprises all societal forces that affect the microenvironment.
Includes:
Demography
Economic factors
Natural forces
Technology
Politics
Culture
D E M O G R A P H Y
The study of populations in terms of:
Size
Density
Location
Age
Gender
Race
Occupation
Important for segmenting and targeting markets.
E C O N O M I C E N V I R O N M E N T
Refers to the purchasing power of customers and spending behaviors.
Two economies:
Subsistence: Primarily agriculture-driven, reliant on natural resources.
Industrial: Focused on producing material goods for the market.
N A T U R A L E N V I R O N M E N T
Encompasses natural resources used as marketing inputs.
Concerns include:
Pollution
Raw material shortages
Governmental intervention
T E C H N O L O G I C A L E N V I R O N M E N T
Fastest-changing factors in the macroenvironment including:
Antibiotics
Surgery technologies
Nuclear technology
Automotive advancements
Credit technology
P O L I T I C A L E N V I R O N M E N T
Involves laws and government agencies affecting organizations.
Marketers must be aware of restrictions, which can be complex (e.g., cigarette marketing regulations).
C U L T U R A L E N V I R O N M E N T
Comprises institutions, values, and beliefs of a group.
Values can be categorized:
Core Beliefs: Difficult to change, long-lasting.
Secondary Beliefs: Easier to influence.
Essential for marketers to understand in campaign development.
M E S O - E N V I R O N M E N T W E E K V I I
Definition of Meso-Environment
It is the setting that shapes business opportunities, creating a framework for organizations.
Comprises:
Workplace policies
Standard operating procedures
Rules and guidelines
M A R K E T I N G L I F E C Y C L E
Phases of Lifecycle Marketing
Collect: Get attention of potential customers.
Convert: Make your product the obvious choice.
Create: Develop advocates and return customers.
T H E C O L L E C T P H A S E
Goal: Attract potential customers.
Stages:
Target: Identifying specific consumer types.
Attract: Draw visitors using engaging content (e.g., ebooks, blogs).
Capture: Use web forms to sign up leads.
T H E C O N V E R T P H A S E
Unique strategy making the product the preferred choice.
Stages:
Engage: Regularly communicate useful information.
Offer: Create irresistible propositions based on customer behaviors.
Close: Clear communication for finalizing sales.
T H E C R E A T E P H A S E
Involves three stages:
Deliver: Fulfill commitments reliably.
Impress: Continually develop value propositions.
Multiply: Encourage referrals through incentives.