Principles of Marketing
Chapter 3: Analyzing the marketing
The marketing Environment
The marketing environment: The actors and forces
outside marketing That affect marketing
management’s ability to build and maintain
successful relationships with target customers.
Successful companies know the vital importance of
constantly watching and adapting to changing
environment. Environment continues to change rapidly.
More than any other group in the company, marketers must be the trend trackers and the
- Marketing research and marketing intelligence to collect information
about the marketing environment
- Spends more time in the customer and competitor environments
By carefully studying the environment
- Marketers can adapt their strategies to meet new market place challenges and
The company’s microenvironment
The microenvironment: the actors close to the company that affect its ability to serve its
Actors close to the company that affect its
ability to serve its customers. Or direct
influence on the firm’s marketing operations
and to extent are controllable factors.
all these actors combine to make up
company’s value delivery network.
How to monitor changes in the external environment
Environmental scanning: the process of monitoring and analyzing the marketing environment
of a company.
Environment scanning is done by:
- The use of SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis
- Anticipating change, spotting emerging opportunities
- Spotting potential problems early enough to remedy them before they cause damage
Different organizations adopt different approaches and commit different resources to
monitoring and evaluating changes in the environment
Principles of Marketing
In designing marketing plans, marketing management takes other company groups into account
-Top management, finance, R&D, operations, accounting
All these interrelated groups form the internal environment
Top management: sets the mission, objectives, broad strategies, and policies
Marketing managers: make decisions within the strategies and plans made by top management
Marketing manager must work closely with other company departments KEY QUESTIONS
focus on “think customer first”
working together to provide superior customer value and satisfaction
better structure to achieve objectives Suppliers
An examination of the firms and individuals
- that provide the resources needed by the company and its competitors
- to produce goods and services
Suppliers are a vital link in the overall
- ‘value delivery system’
Must keep an eye on
- supply availability, supply shortages or delays, labor strikes.
This will affect sales on short run and damage customer satisfaction in long run.
Marketing managers also monitor the price trend of their key inputs
- Rising supply cost may force price increases
- Can harm the company’s sales volume
Treat suppliers as a partner in creating and delivering customer value
- It helps them to test new products in its stores.
- Its supplier development department publishes a supplier proposal guide
and maintains a supplier website.
- This will help suppliers to navigate the complex Walmart buying process. Example of the Supply Chain in Retail
the bargaining power of suppliers
Chapter 3: Analyzing the marketing environment