MCM 605-eL3

IDOL Institute of Distance and Online Learning ENHANCE YOUR QUALIFICATION, ADVANCE YOUR CAREER.

M.Com 2 All right are reserved with CU-IDOL Marketing Management Course Code: MCM 605 Semester: First e-Lesson: 3 SLM Unit: 3 www.cuidol.in Unit 3(MCM 605)

Marketing Management 33 OBJECTIVES INTRODUCTION  In this unit we are going to learn about the  To make students understand the importance of environment scanning. components of micro and macro environment.  To learn the components of micro environment.  Under this you will learn and understand the various techniques of environmental  To make students aware of the various environmental factors affecting marketing.  scanning in today’s changing scenario.  To make them know the various environmental  In this unit you will learn the implications of scanning techniques. various environmental factors in marketing. www.cuidol.in Unit 3(MCMM60650)5) INASlTl ITriUgThEt OarFeDrIeSsTeArNvCeEd AwNitDh OCNUL-IIDNOE LLEARNING

TOPICS TO BE COVERED 4 > Meaning and Concepts of Environment. > Core Concepts of Micro environment. > Components of Macro environment. > Techniques of Environmental Scanning. > Effects of various Environmental Factors on Marketing www.cuidol.in Unit 3(MCM 605) All right are reserved with CU-IDOL

Marketing Environment 5 Factors which affect Marketing Environment:- https://www.google.com/search?biw=1366&bih=608&tbm=isch& • Social Forces sa=1&ei=jTn7XYCGDprbz7sPkNeLiA0&q=sales+promotion+ima • Sociological Factors ges&oq=sales+promotion+images&gs_l=img.1.0.0l2j0i7 • Psychological Factors • Anthropological Factors • Economic Factors • Consumer • Competition • Price • Political Forces • Ethical Forces • Physical Forces • Technological Forces www.cuidol.in Unit 3(MCM 605) All right are reserved with CU-IDOL

Marketing Environment 6 • Macro Environment • Demographic Factors • Economic Factors • Competition • Social and Cultural Forces • Political and Legal Forces • Technology • Micro Environment • Market • Suppliers • Marketing Intermediaries https://theintactone.com/2018/02/04/topic-6-understanding-marketing-environment/ www.cuidol.in Unit 3(MCM 605) All right are reserved with CU-IDOL

Environmental Scanning 7 Environmental scanning is the process of gathering information about events and their relationships within an organization's internal and external environments. The basic purpose of environmental scanning is to help management determine the future direction of the organization. Goal behind Environmental Scanning • Technological Environment • Political Environment • Economic Environment • Cultural Environment • Demographic Environment https://www.marketing91.com/environmental-scanning/ www.cuidol.in Unit 3(MCM 605) All right are reserved with CU-IDOL

Methods used for Environmental 8 Scanning • ETOP • SAP • SWOT • GAP Analysis https://theintactone.com/2018/02/04/topic-6-understanding-marketing- environment www.cuidol.in Unit 3(MCM 605) All right are reserved with CU-IDOL

Environmental Threat and Opportunity 9 Profile (ETOP) It is description of the structure of external factors. These factors may be neutral, in favourable, unfavourable impact on operations of an organization in the environment . Steps in preparing ETOP • 1. Identify major environmental sector- social, economical, political, technological, ecological, natural, legal etc. • 2. Sub - divide the sectors in to subsectors • 3. Identify major issues in the subsectors • 4. Assess the possible impact – favourable, unfavourable or neutral www.cuidol.in Unit 3(MCM 605) All right are reserved with CU-IDOL

Environmental Threat and Opportunity 10 Profile (ETOP) www.cuidol.in https://bbamantra.com/etop-environmental-threat-and-opportunity-profile/ All right are reserved with CU-IDOL Unit 3(MCM 605)

Strategic advantage profile 11 (SAP) • A Profile of strategic advantages (SAP) is a summary statement, which provides an overview of the advantages and disadvantages in key areas likely to affect future operations of the firm. It is a tool for making a systematic evaluation of the strategic advantage factors, which are significant for the company in its environment. The preparation of such a profile presupposes detailed analysis and diagnosis of the factors in each of the functional areas (Marketing, Production, Finance and Accounting, Personnel and Human Resources, R& D). • Since the Strategic Advantage Profile is a summary statement of corporate capabilities, in summarizing the functional competencies a comparative view needs to be taken in the light of external conditions and the time horizon of pro-jections. For example, while comparing the level of inventory holding, one may find it to be relatively higher than that of competing firms; as such it should be regarded as a weakness. But if the market demand shows an increasing trend, apparent weakness should be considered strength. www.cuidol.in Unit 3(MCM 605) All right are reserved with CU-IDOL

12 https://vdocuments.mx/strategic-advantage-profile-sap.html www.cuidol.in Unit 3(MCM 605) All right are reserved with CU-IDOL

SWOT 13 SWOT is an acronym for the internal Strengths and Weaknesses of a business and environmental Opportunities and Threats facing that business. SWOT analysis is a systematic identification of these factors and the strategy that reflects the best match between them. It is based on the logic that an effective strategy maximizes a business’s strengths and opportunities but at the same time minimizes its weaknesses and threats. This simple assumption, if accurately applied, has powerful implications for successfully choosing and designing an effective strategy. • How is it useful? Understanding the key strengths and weaknesses of the firm further aids in narrowing the choice of alternatives and selecting a strategy. Distinct competence and critical weakness are identified in relation to key determinants of success for different market segments; this provides a useful framework for making the best strategic choice. www.cuidol.in Unit 3(MCM 605) All right are reserved with CU-IDOL

14 https://www.marketing91.com/environmental-scanning www.cuidol.in Unit 3(MCM 605) All right are reserved with CU-IDOL

GAP Analysis 15 It is a useful method to describe the process involved in deciding what course of action should be taken to remove any potential profit or sales gap or risk gap. 1. Profit Gap: Gap between profit for the past few years and profit projection based on freehand projection, linear regression coefficient or exponential smoothing. 2. Sales Gap: Gap between planned & actual sales. 3. Product gap: Difference between what a firm offers in terms of product items and what the industry provides in terms of product line. 4. Risk gap: Gap between anticipated risk with strategic decision and the actual happening. www.cuidol.in Unit 3(MCM 605) All right are reserved with CU-IDOL

16 https://www.clearpointstrategy.com/gap-analysis-template/ www.cuidol.in Unit 3(MCM 605) All right are reserved with CU-IDOL

Multiple Choice Questions 17 National security situation will be considered in the macro economic environment as: A. Political Factor B. Social factor C. Military factor D. Economic factor www.cuidol.in Unit 3(MCM 605) All right are reserved with CU-IDOL

Multiple Choice Questions 18 Socio-Economic Forces consists___ A. customer B. competition C. substitutes D. all of these www.cuidol.in Unit 3(MCM 605) All right are reserved with CU-IDOL

Multiple Choice Questions 19 When analyzing the marketing environment, which heading should the company’s increased brand equity go under? A. political B. personal C. organizational D. environmental E. regulatory www.cuidol.in Unit 3(MCM 605) All right are reserved with CU-IDOL

Multiple Choice Questions 20 Which of the following statement is true? A. Environmental analysis and diagnosis involve understanding the five forces, namely socio- economic, competition, technology, government policies and supplies. B. Understanding the socio-economic, forces is important as they determine the demand for a product or service at any given time. This involves an analysis of structural changes in the population and economic change in the society. C. Technology factor involves understanding technological change affecting the firm’s products, process and systems and its capacity to respond faster to the customer. The technological development in the industry creates an opportunity for a marker to develop new products the consumer also tends to benefit from these developments. D. All of these. www.cuidol.in Unit 3(MCM 605) All right are reserved with CU-IDOL

Summary 21 • Environmental scanning is an important requirement for companies to understand threats and opportunities. • Companies will face forces from the micro environment and the macro environment. • PESTEL analysis is a technique used by companies for analyzing the environmental forces. www.cuidol.in Unit 3(MCM 605) All right are reserved with CU-IDOL

Frequently Asked Questions 22 Q1. What are the factors affecting marketing in macro environment? Ans. The Macro Environment consists of 6 different forces. These are: Demographic, Economic, Political, Ecological, Socio-Cultural, and Technological forces. This can easily be remembered: the DESTEP model, also called DEPEST model, helps to consider the different factors of the Macro Environment. Q2. Discuss the role of environment in the success of marketing function and activities. Ans. Both large and small organizations operate within their business environments. Various external and internal forces influence the marketing strategies of a company. Such forces can affect a firm either positively or negatively. Consequently, it is the duty of marketers to monitor any changes in these forces, which then assists them in decision-making. Q3. You are directed to study the actors close to the company that affect its ability to serve its customers-departments within the company, suppliers, marketing intermediaries, customer markets, competitors, and publics. What are you studying? Ans. Micro environment. www.cuidol.in Unit 3(MCM 605) All right are reserved with CU-IDOL

REFERENCES 23 1. Kotler,P., Keller, K.L. Koshy, A. and Jha, M. (2009). Marketing Management: A South Asian Perspective. New Delhi: Pearson Education. 2. Etzel, M., Walker, B., Stanton, W. and Pandit, A.(2007). Marketing Management. New Delhi: Tata McGrawHill. 3. Ramaswamy, V.S., Namakumari, S. (2009). Marketing Management: Global Perspective Indian Context. New Delhi: Macmillan Publishers India Ltd. 4. Saxena, Rajan. (2010). Marketing Management. New Delhi: Tata McGraw Hill Education Pvt. Ltd. www.cuidol.in Unit 3(MCM 605) 2A3ll right are reserved with CU-IDOL

24 THANK YOU For queries Email: [email protected] www.cuidol.in Unit 3(MCM 605) All right are reserved with CU-IDOL