Gbe-unit-i-ppt

Gbe-unit-i-ppt - Transcript

GLOBAL BUSINESS ENVIRONMENT Course Facilitator Dr C DHARMARAJ M Com MBA M Phil MA PGDCA PGDMM Ph D Assistant Professor SG

Unit I
Unit outline Environmental adjustment needs Analyzing the international marketing environment Population Growth rate Distribution of Population Distribution of Income

Objectives


Describe the environmental forces that affect the company s ability to serve its customers Explain how changes in the demographic and economic environments affect marketing decisions Identify the major trends in the firm s natural and technological environments Explain the key changes in the political and cultural environments Discuss how companies can react to the marketing environment









Marketing Environment


The marketing environment consists of factors and forces outside the organization that affect management s ability to build and maintain relationships with target customers Environment offers both opportunities and threats Marketing intelligence and research serve to collect information about the environment





Purpose of Marketing Environment Analysis


Marketing environment is central to marketing management To differentiate which events and trends are favorable unfavorable to the firm To project assess the role of each environmental factors to reduce the risk To assess the scope of various opportunities that can favorably impact the business To help secure the right fit between the environment and the business unit









Marketing Environment


Includes


Microenvironment factors close to the company that affect its ability to serve its customers Macro environment larger societal forces that affect the microenvironment




Considered to be beyond the control of the organization

Factors in the Microenvironment

The Company s Microenvironment


Company s Internal Environment


Areas inside a company Affects the marketing department s planning strategies All departments must think consumer and work together to provide superior customer value and satisfaction





The Company s Microenvironment


Suppliers


Provide resources needed to produce goods and services Important link in the value delivery system Most marketers treat suppliers like partners





The Company s Microenvironment



Marketing Intermediaries


Help the company to promote sell and distribute its goods to final buyers


Resellers Physical distribution firms Marketing services agencies Financial intermediaries

The Company s Microenvironment


Customers


Several types of markets that purchase a company s goods and services Customer vs consumer



The Company s Microenvironment


Competitors


Those who serve a target market with products and services that are viewed by consumers as being reasonable substitutes Company must gain strategic advantage against these organizations Group that has an interest in or impact on an organization s ability to achieve its objectives





Publics


Types of Publics

The Macro environment


The company and all of the other factors operate in a larger macro environment of forces that shape opportunities and pose threats to the company

The Company s Macroenvironment

The Company s Macroenvironment


Demographic


The study of human populations in terms of size density location age gender occupation and other statistics Marketers track changing age aging population family life cycle and family structures singles educational characteristics better educated people more white collar people and population diversity



The Macroenvironment


Key Demographic Trends


World population growth Changing age structure


The U S population consists of seven generational groups


Baby boomers Generation X and Generation Y are key groups



Distinct segments typically exist within these generational groups 4 17

The Macroenvironment
Ke y Ge ne ratio ns



Born between 1946 and 1964 Represent 28 of the population earn 50 of personal income Many mini segments exist within the boomer group Entering peak earning years as they mature profitable market for travel entertainment housing and more





Baby B oom e rs Ge ne ration X Ge ne ration Y







4 18

The Macroenvironment
Ke y Ge ne ratio ns



Born between 1965 and 1976 Maintain a cautious economic outlook Share new cultural concerns Represent 125 billion in annual purchasing power Will be primary buyers of most goods by 2010





Baby B oom e rs Ge ne ration X Ge ne ration Y







4 19

The Macroenvironment
Ke y Ge ne ratio ns



Born between 1977 and 1994 72 million strong almost as large a group as their baby boomer parents New products services and media cater to GenY Computer Internet and digitally savvy Challenging target for marketers





Baby B oom e rs Ge ne ration X Ge ne ration Y







4 20

The Macroenvironment
Key Demographic Trends




Changing American household Geographic population shifts Better educated more white collar workforce Increasing Diversity
4 21







Diversity Based Advertising

Based on careful study of cultural differences Bank of America has developed targeted advertising messages for different cultural subgroups here Asians and Hispanics

Economic Environment
Consists of factors that affect consumer purchasing power and spending patterns Changes in income and income distribution vs social class


Upper class Middle class Working class Underclass







Income Distribution

Walt Disney markets two distinct Pooh bears to match its twotiered market

Natural Environment


Involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities

Environmental Responsibility

McDonald s has made a substantial commitment to the so called green movement

Technological Environment


Most dramatic force now shaping our destiny Changes rapidly Creates new markets and opportunities Challenge is to make practical affordable products Safety regulations result in higher research costs and longer time between conceptualization and introduction of product









Political Environment
Includes Laws Government Agencies and Pressure Groups that Influence or Limit Various Organizations and Individuals In a Given Society
Increasing Legislation

Changing Government Agency Enforcement Increased Emphasis on Ethics Socially Responsible Actions

Cultural Environment


The institutions and other forces that affect a society s basic values perceptions preference and behaviors Core beliefs and values are passed on from parents to children and are reinforced by schools business place and government Secondary beliefs and values are more open to change





Cultural Environment
Society s Major Cultural Views Are Expressed in People s Views of

e s r e v i n U e h T

e r u t a N

y t e i c o S

s n o i t a z i n a g r O

s r e h t O

s e v l e s m e h T

From Environment to SWOT analysis
How we can transforom results from analysis of external and internal environment to SWOT analysis

Source

Strengths

Weaknesses

Internal controllable

Opportunities

Threats

External uncontrollable