Factors Affecting Marketing Essay

INTRODUCTIONA pedigree princip eithery is the organized effort by individuals in an shaping to perplex goods and go and to sell these goods and services in a nutrient grocery smirch to earn a good profit margin. The operating environment for all in all organizations whether they ar commercial, charitable, governmental, or in the world sector more than generally, is neer static and seldom entirely predictable, and fucking therefore profoundly impress a friendships course of action. An organization asshole entrance the various environmental forces acting on it.COMPONENTS OF THE MARKETING ENVIRONMENTThe midland Environment concerns the resources, processes and policies an organization manages in order to achieve its goals. These elements loafer be influenced transportly by an organization. The External Environment consists of the Micro Environment and the macro Environment. The Macro Environment consists of the political, social, scotchal, legal and technological influences, and organizations usually apply very limited influence on each of these. The Micro Environment consists of competitors, suppliers and verifying service providers, who take shape the way an organization achieves its objectives. In this environment, organizations wipe out a much stronger level of influence.MICRO ENVIRONMENTMicro environment consists of those organizations that either studyly or indirectly influence an organizations lendable feat. There ar three main types 1. Those companies that compete against the system of rules in the pursuit of its objectives. 2. Those companies that supply raw materials, goods and services and those that add value as distri yetors, dealers, and retailers in the tradeing channel. 3. Those companies that sire the potential to indirectly influence the per orchest rollance of theorganisation in the pursuit of its objectives. Analysis of the surgical process environment is undertaken so that organisations can adapt to bette r positions, relative to those of their stakeholders and competitors. An Industry consists of various firms that market similar mathematical increases and services.According to Porter, a leading Professor on free-enterprise(a) Strategy in the Harvard telephone line School in his work on How Competitive Forces Shape Strategy, we should review the agonistical environment deep down an industry to identify the major combative forces, as this can benefactor assess their electric shock on an organisations present and prospective competitive positions. Porter suggests that competition in an industry is a intricate of five main competitive forces. These ar the level of threat that b ar-assed competitors go out enter the market, the threat posed by substitute products, and the talk damage precedent of both profaneers and suppliers. These, in turn, affect the fifth force, the intensity of clean competitors.New EntrantsWhen examining an industry, we should consider whether e conomies of scale be pick upd to operate successfully within it. Economies of scale are the cost advantages that enterprises obtain due to size, egressput, or scale of operation, with cost per unit of output generally decreasing with plus scale as fixed costs are spread out over more units of output. New entrants may be restricted finished government and regulatory policy, or they may well be rimy out of an industry because of the capital requirements necessary to set up business.For example, in the oil and gas industry because of the capital required for the extraction and purgation operations. Companies may be out of a market because companies within that market are operating using proprietary products or services or technologies for example, the pharmaceutical industry where patents protect companies investments in new medicines.SubstitutesConsumers consider the fracture costs associated with such a decision, which in turn, affects their propensity to substitute the pro duct or service for an new(prenominal)(a) offering for example customers consider the transmutation costs from mobile call rate packages to internet packages and consider their flexibility in transferring messages. They also consider the relative chargeperformance of cardinal offering over an separate for example as the telecommunications markets continue to last with the development of broadband internet services, there are a physique of diametric companies such as Airtel, Aircel, Reliance and so onoperating in the like competitive marketspace.BuyersCompanies should consider their sales to one(a) individual party. The discernment is, if one barter foring company purchases a large volume of products from the supplying company, it is possible to be able to demand price concessions when there are wads of competing suppliers in the marketplace relative to the proportion of buyers. Buyers may also annex their bargaining cause through backward integration. A Compan y is say to have backward integrated when it shams into manufacturing the products and services it previously brought from its suppliers. Another substantial factor is price sensitivity. Depending on their trading circumstances, some companies might be more sensitive to price than other buyers. If such companies are more prices sensitive and yet there are lots of competing suppliers for their businesses, they are presumable to display less loyalty to their suppliers.Most companies enhance other factors associated with an offering for example customization and after sale services to try to reduce a client companys price sensitivity for example Kitchen equipments are provided with free demo sessions on home delivery. Buyers include Consumers, individuals and households that buy goods and services for personal consumption Businesses, that buy goods and services for further processing or for use in their return process Resellers, who buy goods and services in order to resell them a t a profit Government agencies that buy goods and services in order to produce public services or transfer them to those that requirement them International markets, buyers of all types in foreign countries.SuppliersAn organisation should determine how suppliers operate and the extent of their bargaining power. If a small material body of suppliers operate within an industry with a large number of competitors, the suppliers have the stronger bargaining advantage. On the other hand, in an industry where there is a large number of suppliers with few competing companies, the buying companies have the bargaining advantage. The suppliers need to be evaluated on theuniqueness and the quality of materials provided that enhance their bargaining situation. An increase in raw material prices will affect an organisations Marketing Mix strategy and may sluice force price increases.Close supplier relationships are an effective way to remain competitive and secure quality products. In some Ind ustries, suppliers increase their market self-confidence by forward integrating. It is a business strategy that involves a form of vertical integration whereby activities are expanded to include control of the direct distri only whenion of its products for example tea manufacturing company selling based on auctions bringing in sales outlets at their factories to increase local partnership sales. It allows a Company to control its own supply chains better, but also allows it to sell at lower prices, thereby increasing sales and profit.CompetitorsEvery company faces a wide range of competitors. A company must secure a strategic advantage over competitors by positioning their offerings to be successful in the marketplace. No single competitive strategy is best for all companies. Competitor analysis and monitoring is polar if an organisation is to maintain or improve its position within the market for example an analysis of the Diary Industry functions to know the market segmentati on, allocate and the major players and their contribution and competitive opportunities. We should consider each companys structure, current and future developments and its latest financial results. We should also consider the different types of goods and services that competitors offer in different market sectors. Measuring and quantifying market responses to any new strategy developments that the company initiates are also consequential factors.OTHER MICRO ENVIRONMENT FACTORSShareholdersAs organizations require investment to grow, they may decide to raise money by entering the stock market. They move from private to public ownership. The introduction of public shareholders brings new pressures as public shareholders want a return from the money they have invested in the company. Maintaining Shareholders involvement will substantiate huge profits.MediaOrganizations need to manage their media activities so that it can armed service promote the positive things about the organisat ion and reduce the impact of a negative event on their reputation. Some organisations will even employ Public Relations (PR) consultants to help them manage a event event or incident. Television programmes with a wide and more direct audience can also have a very hefty impact on the success of an organization.Marketing IntermediariesMarketing Intermediaries are firms that help the company to promote, sell, and distribute its goods to final buyers. They are the distribution channel firms that help the company find customers or make sales to them. These include wholesalers and retailers who buy and resell merchandise. They perform important functions more cheaply than the company can perform itself.MACRO-ENVIRONMENTThe company and all of the other actors operate in a large macro environment of forces that shape opportunities and pose threats to the company is cognise as macro environment. Six largely uncountable impertinent forces influence an organizations merchandising activitie s and shape opportunities is known as macro environment.Major external and uncontrollable factors that influence an organizations decision making,and affect its performance and strategies. These factors include the economic, demographics,legal, political, and social conditions, technological falsifys, and inborn forces is known as macro environment.Demographic EnvironmentDemography is the study of human communitys in terms of size, destiny, location, age, gender,race, occupation and other statistics. The demographic environment is of major interest to marketers because it involves pluralityAge Structure of the Total Population and Its ChangesThe number of different ages of passel such as the number of children, teenage, youth, old person should be kept in brainpower at the time of doing marketing strategy. Because a product cannot be certified for every ages ofcustomer. Moreover, at the time of increasing of population the growth of demand of product rises should be noticed o therwise marketing process wont be effective at all. On the contrary at the time of the decrease of population the demand falls. This is the designer at the time of doing marketing strategy the matter of population must be analyzed.For example PONDS ANTI ageing cream is specially cerebrate on a particular customer group of women above 30 years.Changed Family LifeNow a days one can easily identify the changes of family life style such as- the growth of workings class women, income capability of women, adult marriage of women and the right of divorce of women etc. also important for doing marketing strategy. For this reason people are hot to do a less physical labored task. And prepared fare, half cooked food, bread, washing machines etc. are used more. So, now we use bundle masala, pressure cooker, rice cooker, washing machine, go to restaurants for food for saveour time but those things created market for the product and the marketers acquire benefit from their work and grow ing rapidly. geographical Shift in PopulationGeographically living of population and the vex of geographical living of population create impact on marketing. For a lot of reason people tend to go to big cities. For this reason peoples life style and their demand style are changing. Moreover, producing product for tourist, stock seeking people, businessmen is also profitable business. Besides, people are overtaking abroad and coming back to the country and making a change in their demand style which has to be kept in mind to keep pace with the global growing market This leads to less production in farming products and industry concentrate more on social structure tools as majority of farmers move towards cities and mostly involved in facial expression work as helpers.Economic EnvironmentMarketers require buying power as well as people. The economic environment consists of factors that affect consumers acquire power and spendingpower/ patterns. Marketers must pay close aid to m ajor trends and consumers spending patternsChanging IncomeThough our per capita income grows but customers real purchase power falls for 3 decades. sum up rate of inflation, increase rate of unemployment, taxes, economic uncertainty also responsible for the downward shift of economic condition of customer. For trade and foreign support some peoples purchasing power are increasing but limited earned peoples condition getting worse day by day.Changing Consumer Spending PatternsThe spending patterns are different basis on earning patterns so their buying patterns also different. Food, hold and transportation use up the most house hold income. As family income rises, the percentage expense on food declines, spent on housing remains constant, and both the percentage spent on most other categories and that devoted to saving categories. At the time of increasing of income the eating role gets changed. Again the storage of product or the shortage of product may cause the change of dema nd.Natural EnvironmentThe natural environment involves the natural resources that are needed as inputs by marketers or they are touch by marketing activities. Environmental concerns have grown steadily during the past times three decades. Marketers should be aware of several trends in the natural environment. paucity of Raw MaterialAssets can be divided as unmeasured but not increasable and limited but increasable. As example- air and piss is unlimited but for some industrial reason these resources gets polluted. For this reason survey consciousness is raised or some countries enforced law. Forest and food is limited but it is possible to increase its production. To make run the afforest or wood related businesses we should start taking tree woodlet measures. On the other hand oil, gas, coal etc. natural resources are also problematic. Though these resources are enough in some cases available but the expense to usethese resources are increased a lot. So the alternative resource s are looked for or experimenting is going on to lessen the expensesIncrease of PollutionSome industrial activities are undoubtedly harming the nature. The filth of factories consisting of toxicant is polluting both soil and water. As a result taking food seems threatening. scientific EnvironmentThe technological environment is perhaps the most hammy forces now shopping own destiny. Technological environment involves forces that create new technologist creating new product and marketing opportunities.Faster Pace of Technological ChangeTechnology is changing day by day. A company must have to fix their step accordance with the technological changes. Otherwise, it is out(predicate) to survive in the market competition. At the present day all types of communication are done by modern technology. To marketing goods in BD one has to stay connect with modern technology.High Research & maturation BudgetFor better production one company may require a group of people for inquiry the mark et & requite a group of expertise for proper budget in production which will help to take part in competition with others. Sometimes it seems that the power of the marketing department spends a huge amount of money for research & development budget whereas they forget about the product. Along with research one should take his/her eye on the product.Political EnvironmentMarketing decisions are strongly affected by developments in the political environment. Political environment consists of laws, government agencies, government itself and pressure groups that influence or limits various organizations and individuals in a given up society. For instance Alcohol announce is the promotion of soaking beverages by alcohol producers through a variety of media. Along with tobacco advertising, it is one of themost highly regulated forms of marketing. All forms of alcohol advertising is banned India. Though the manufacturers try to promote their product by using the similar name for the pro ducts that can be advertised and promoted in media it cool off has an impact.Cultural EnvironmentThe cultural environment is made up of institutions and other forces that affect a societys basic set, perceptions, preferences and behaviors. There are few cultural values which affect marketing decision making. These are, intentness of cultural value, shifts in secondary cultural value, people views of organization/ others, etc.Persistence of Cultural ValuesPeople in a given society hold many beliefs and views. Their core belief and values have a high degree of persistence. For example, Bangladeshi people are quiet loving, getting married for once, strongly hold their religion and being honest. These beliefs shape more specific attitudes and behaviors found in everyday life. Core beliefs and values are passed on from parents to children and are reinforced by schools, colleges, universities, and business and so on.Sub-culturesEvery culture has some sub-cultures. People of sub-cultur es belief, ethics, attitude etc. are like to be core culture but they have secondary beliefs. Like rich people. They have different thinking from the other people and they have different life style. They like to present them as different from others and it affects marketing to a certain extent.References1.Marketing, ASIAN EDITION, OXFORD UNIVERSITY PRESSBy Paul Baines, Chris Fill, Kelly Page, Adapted by Piyush K. Sinha 2. How Competitive Forces Shape Strategy, Harvard Business Review, Harvard Business School Publishing by Porter, M.E3.Market Audit and Analysis Nicole Lorat4.Principles of marketing- Young,Et ALOnline Referenceswww.wikipedia.comimages.google.co.in