Marketing Strategy | Analyzing Marketing Environment | PART 1 | Lecture 7
Summary
TLDRThis chapter delves into analyzing the marketing environment, emphasizing the importance of understanding external factors that influence business strategies. It distinguishes between micro and macro environments, highlighting the roles of suppliers, intermediaries, competitors, and publics in a company's micro environment. The script illustrates how companies like Walmart leverage cost-effective operations and strategic partnerships to create value for customers, stressing the need for building strong relationships with customers for business success.
Takeaways
- 📚 Analyzing the marketing environment is crucial for understanding external factors that can affect business strategies and preparing technology-based marketing strategies.
- 🤝 The marketing environment includes both micro and macro environments, which consist of various actors that can influence a company's ability to build and maintain customer relationships.
- 🔍 Micro environment involves actors close to the company, such as suppliers, marketing intermediaries, customer markets, competitors, and publics, who directly interact with the company.
- 🔑 Successful marketing hinges on building strong relationships with customers, emphasizing the importance of being more than just a transactional entity.
- 🔄 The company's micro environment can significantly affect the value provided to customers, requiring good relationships with suppliers for quality materials and cost-effective operations.
- 🏢 Internal departments like top management, finance, R&D, and operations must work in harmony to create customer value and maintain a competitive edge.
- 🛒 Marketing intermediaries are essential for promoting, selling, and distributing products, and forming partnerships can help reduce operational costs.
- 💡 Competitors play a role in setting industry standards, and companies must position their offerings strategically to gain a competitive advantage.
- 🌐 Publics, including financial, media, government, citizen action, local, and internal publics, can have an impact on a company's operations and objectives.
- 🌟 The macro environment, to be discussed in the next video, will further elaborate on broader factors that can influence a company's marketing strategies.
- 🚀 Companies like Walmart leverage outsourcing and strategic partnerships to keep operational costs low, providing more value to customers and gaining market share.
Q & A
What is the main focus of Chapter 3 in the transcript?
-The main focus of Chapter 3 is analyzing the marketing environment, including understanding the market environment, external factors affecting a business, and how to prepare a technology-based marketing strategy.
Why is it important to consider the opponent's move in a marketing strategy?
-It is important because the strategy a business creates should be responsive to the habits and moves of the competition, similar to a game of chess, to effectively capture market attention and receive community response.
What are the two types of environments a company operates within according to the transcript?
-A company operates within a micro environment and a macro environment. The micro environment consists of actors close to the company, while the macro environment includes broader factors that affect the entire market.
What does the term 'actors' in the context of the micro environment refer to?
-In the context of the micro environment, 'actors' refer to people, places, things, and technology that interact directly with the company and can affect its ability to serve its customers.
Why are competitors considered an important part of a company's micro environment?
-Competitors are important because they serve as a standard for the company to beat, meet, or exceed, thereby driving the company to constantly improve and innovate.
What role do suppliers play in a company's value delivery system?
-Suppliers provide the necessary resources and quality parts to produce goods and services, acting as partners in creating customer value and contributing to the company's success.
How does Walmart's relationship with its operations department impact its marketing promises?
-Walmart's marketers can promise low prices only if its operations department delivers low costs, which includes efficient packaging, shipping, procurement, and stock handling.
What is the significance of marketing intermediaries in a company's micro environment?
-Marketing intermediaries help the company promote, sell, and distribute its products through various channels, such as resellers, physical distribution firms, marketing service agencies, and financial intermediaries.
Why are publics considered an important part of a company's micro environment?
-Publics, including financial, media, government, citizen action, local, and the general public, can have an actual or potential interest in or impact on an organization's ability to achieve its objectives.
What is the role of internal publics in a company?
-Internal publics, which include employees and people within the organization, are crucial as they can significantly influence the success or failure of the business through their actions and contributions.
What is an example of how a company like Walmart uses its micro environment to its advantage?
-Walmart keeps its operation costs low by outsourcing production activities to China, where it has built factories with lower labor costs, allowing it to offer products at competitive prices in the US market.
Outlines
🎯 Understanding the Marketing Environment
The first paragraph introduces the concept of analyzing the marketing environment in a business context. It emphasizes the importance of external factors and how they can influence a company's marketing strategy. The analogy of chess is used to illustrate the dynamic interaction between a company and its market environment. The paragraph explains that a business must adapt its strategy based on market observations and the behavior of competitors. It also introduces the idea of the marketing environment consisting of both micro and macro environments, with the micro environment including actors such as suppliers, marketing intermediaries, customer markets, competitors, and publics. The importance of building and maintaining successful relationships with customers is highlighted, as it is fundamental to the success of any business.
🔗 The Interconnectedness of a Company's Micro Environment
The second paragraph delves deeper into the micro environment, discussing the interconnected roles of various actors such as suppliers, marketing intermediaries, and competitors. It uses the example of Walmart to illustrate how a company can leverage its micro environment to create value for customers by keeping operational costs low, which in turn allows for competitive pricing. The paragraph also touches on the importance of partnerships with suppliers and marketing intermediaries to ensure the delivery of quality products and services. Furthermore, it explains the role of competitors in driving a company to improve and the significance of publics, including financial, media, government, citizen action, local, and the general public, in influencing a company's ability to achieve its objectives.
🌐 The Impact of Publics on Business Operations
The third paragraph focuses on the role of publics in a company's micro environment. It categorizes publics into financial, media, government, citizen action, local, general, and internal publics, explaining how each group can affect a company's operations and objectives. The paragraph provides examples of how these publics can influence business decisions and outcomes, such as financial publics setting tax rates and government publics regulating trade practices. It also highlights the importance of internal publics, emphasizing that employees can significantly impact a company's success or failure. The paragraph concludes with a cautionary tale about the first computer virus, which originated from within an organization, underscoring the need to manage internal publics effectively.
Mindmap
Keywords
💡Marketing Environment
💡Technology-based Marketing Strategy
💡Micro Environment
💡Macro Environment
💡Value Delivery System
💡Competitors
💡Publics
💡Customer Relationships
💡Market Observation
💡Internal Publics
💡Suppliers
Highlights
Chapter 3 focuses on analyzing the marketing environment and its impact on business strategies.
The market environment is likened to a game of chess, where business strategies are contingent on the moves of competitors.
Business success hinges on building and maintaining successful relationships with customers.
The marketing environment encompasses external actors and forces that influence marketing management's effectiveness.
Two types of environments are identified: micro and macro, with micro environments being closer and more directly interactive with the company.
The micro environment includes suppliers, marketing intermediaries, customer markets, competitors, and publics.
Suppliers are crucial partners in providing quality materials for a company's products.
Marketing intermediaries play a role in promoting, selling, and distributing a company's products.
Competitors serve as benchmarks for companies to improve and exceed in the market.
Publics can influence a company's objectives and include financial, media, government, citizen action, local, and internal publics.
Internal publics, such as employees, can significantly impact a company's success or failure.
The value delivery system aims to serve target customers and create strong relationships with them.
Walmart's example illustrates how a company's micro environment can affect the value provided to customers.
Operational efficiency, such as low-cost structures, can lead to delivering lower prices to customers.
Partnerships with suppliers and marketing intermediaries can help reduce operational costs.
Competitive strategies involve positioning offerings against competitors to gain a strategic advantage.
Publics, both internal and external, have a direct or potential impact on a company's ability to achieve its objectives.
The next video will discuss the macro environment, expanding on the factors that affect a company on a larger scale.
Transcripts
Hello friends welcome back this is
chapter 3 and we are now talking about
analyzing the marketing environment in
this chapter you're going to learn what
is the market environment what are the
external factors that will affect you as
a business and how you can prepare your
Technology based marketing strategy
better okay this is like like a game of
chess you have to play according to your
opponent you cannot just keep playing by
yourself your uh move is directly
dependent on the move of your opponent
so you know the strategy that you create
is based on the habits of your opponent
so it's like you know a complete Market
observation going on and based on the
market observation you're supposed to be
developing a strategy to attack the
market so that you get complete
attention and at the same time you get a
response from the
community based on you know whether they
approve of the product they find your
product uh popular or they find it
fulfilling a need want etc etc so there
many factors that will help you uh
Define the market environment and many
factors that will help you adjust to
that environment as a business uh by
attracting your community with the aid
of Technology based marketing okay the
marketing environment includes the
actors and forces outside marketing that
affect marketing Management's ability to
build and maintain successful
relationships with the customers so
ultimately we're looking at building
successful relationship with the
customers remember if you do not have a
relationship with your customer you
don't have a business so marketing is
all about uh being friends with the
customer there many more things that we
will uncover in this chapter there are
two kinds of environment a company an
organization has a micro environment and
it has a macro environment okay micro
means small micro environment consists
of the actors close to the company that
affect its ability to serve its
customers the company Supply ERS
marketing intermediaries customer
markets competitors and publics okay
when I use the word actors I don't want
you to get confused because actors
simply means people places things
technology that is interacting with your
company and these interact directly with
your company and they are close Okay in
a micro environment these are actually
close to your company and they all alter
It's ability alter means U modify or it
you know either improves or makes it
worse uh with the way you interact with
the customers your suppliers your
marketing intermediaries customer
markets competitors and publics the
company's micro environment is something
like this this is the marketing
environment and you have the company and
towards the end here of the Spectrum you
have
customers the company needs suppliers
marketing intermediaries and competitors
you know competitors are needed so that
the company can improve you always have
to have a form of a standard competitors
are usually your standards you know uh
which you have to beat meet exceed and
uh work towards so Publix is you know
the general uh community that will be
interested in your your product to
service your potential customers and
then customers are your the actual uh
you know parts of the publ if it's a
vend diagram you can have say that the
customers are a subset of your publ so
customers are those parts of the publ
that actually uh purchase your product
or service so in creating value for
customer markets customers marketers
must partner with other firms in the
company's value delivery Network for
example Lexus the car maker can't create
a high quality ownership experience for
its customers unless its suppliers
provide quality parts and its dealers
provide High Sales and Service quality
so as a business if you are providing
any kind of service or any kind of
product you must have excellent
relationships with your suppliers you
should have uh you know the vertical
markets that provide your raw materials
you must have have very good
relationship with them so that they can
provide you with quality material and in
return you can provide this value to
your customer and win the market share
okay the company marketers must work in
harmony with other company departments
to create customer value in
relationships for example Walmart's
marketers can't promise US low prices
unless its operations Department
delivers low cost so if you keep your
cost low your packaging your shipping
your uh procurement your stock handling
all of these costs if your operation
costs are low you will deliver the low
cost to your customer so let me tell you
one thing about Walmart there is a very
famous documentary on Walmart that most
of the factories that they have or most
of the stuff that they produce in their
store they get it from China now not
only do they get it made from China they
have purchased land in China where they
have built their own factories Walmart
factories that create products by
Chinese uh employees who they pay very
less fraction of the amount that they
would have spent in United States so
these people the Walmart it keeps its
operations cost Low by Outsourcing its
production activities and then when the
items are shipped to the United States
they are slightly higher in price but
still relatively lower than the
competitors so this is how a company's
micro environment plays a major role in
affecting the value provided to the
customer at this end of the spectrum you
have customers and customers are the
most important actors in the company's
micro environment because they will
ultimately drive your Market okay and uh
the aim of the entire value delivery
system this is a value delivery system
all of these actors are very important
to deliver value to the customer the aim
of the entire value delivery system is
to serve Target customers and create
strong relationships with them okay the
company's micro
environment top management Finance R&D
this is the my environment within the
company you have top management you have
finance department you have research and
development you have purchasing
operations and accounting suppliers
provide the resources to produce goods
and services they are treated as
partners to provide customer value okay
usually you would see for example
logistics companies like uh TCS
DHL and many more what they do is they
have partnered with many many organiz
izations that they would provide them
lower uh delivery shipping and handling
costs as compared to other people uh
provided that they have a contract for 6
months and one year and then everything
that they make uh will be delivered
through that company so most people what
they do is they form partnership uh such
Partnerships with the marketing
intermediaries and suppliers so that uh
they can keep their cost low operation
cost low the the company's micro
environment marketing intermediaries
help the company to promote sell and
distribute its products you have
resellers you have physical distribution
firms you have marketing Services
agencies you have Financial
intermediaries so you have all of these
actors in the marketing intermediaries
we're going to discuss them in detail
which is why I'm not going in detail
right
now okay competitors firms must gain
strategic Advantage by positioning their
offering against competitors offerings
so I mean if you look at Walmart they
have products that are uh generic okay
if you buy Nia from somewhere you know
the moisturizer Nivea and many Johnson
and Johnson products for babies and many
famous you know products that you can
see Walmart will make a generic brand
and it it calls it equate and what it
does is it keeps the product very
similar in quality a little bit inferior
but similar okay somewhat similar in
quality with the uh original product
it's not a fake product we're not
talking about something fake here we're
not even talking about an imitation here
we talking about a new product with a
slightly different texture and feeling
but reminding you strongly of the
original product and the price is much
lower sometimes even half the price or
25% less than the price so this is how
Walmart competes with the original
product providers by keeping its cost
low and providing more value to the
customer publics are any groups that
have an actual or potential interest in
or impact on an organization's ability
to achieve its objectives and they
include Financial publics media publics
government publics citizen action
publics local public the general public
and the internal public
so Financial publics are those people
that are responsible for coming up with
financial mandates laws and legal
actions and everything so they decide on
taxes they decide on you know any kind
of customs and duties and any kind of
fines and all of these things so these
are the financial publics in general the
government financial sector that decides
how trades and tariffs would be carried
out across border within the country and
you know many such uh rules are
established by them and they directly
have an effect on the price of the
product or service media public these
are the Publix that are responsible for
traditional advertising okay for example
television radio uh newspaper magazines
advertisement on the banners outside uh
advertisement on buses and public
transportation all of these
government publics these are the you
know the rule makers policy makers the
lawmakers they decide how what licenses
what auditing methods and all of those
things okay citizen action publics are
those publics that Express their
concerns they that Express their needs
their desires their want they wish list
and they let you know what they want
local publics is similar to the citizen
publics and uh I guess the local publics
are the general public at the same time
okay there's this general public as well
okay citizen local and general publics
are interchangeable with a few minor
differences between each other but the
idea here is that the public different
kind of public around your company is
going to have an impact on and how you
do business and internal publics are the
people within your organization very
very important people to consider when
you're running a business because they
can make or break your business many
many things that you need to consider
sometimes we don't even know about them
so uh let me tell you one thing at this
point you know when the Internet was
developed in um 1980s
1970s uh the
first computer virus was not developed
by somebody who was outside the company
that was developing the internet the
arpanet at the United States Pentagon it
developed the first um you know internet
communication protocol and the there was
this worm that was the virus moris virus
that was created and it was not created
by anybody outside the organization it
was created by somebody who was internal
the internal public so you have to take
care of your internal publics because
they can make or break your organization
you know they can commit the kind of
crimes nobody else can commit so you and
this moris worm was it it created
millions millions of losses at that time
because it destroyed a lot of computers
and mainframe computers and
supercomputers at that time and it cost
companies a lot of money so you need to
make sure that your internal Publix is
your priority you need to take care of
your
employees okay let's pause the lecture
here and uh in the next video I'm going
to talk about the macro environment okay
so stay tuned I'll be right
[Music]
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