Professional Documents
Culture Documents
Suresh Chandra.Ch,
Junior Research Fellow 15-2
Global Marketing Environment
Suresh Chandra.Ch,
Junior Research Fellow 15-3
The
The Marketing
Marketing Environment
Environment
Demographic
Company
Cultural Economic
Publics Suppliers
Company
Customers
Competitors Natural
Political
Intermediaries
Technological
Suresh Chandra.Ch,
Junior Research Fellow 15-4
The
The Microenvironment
Microenvironment
Company
Company
Publics
Publics Forces
Forces Affecting
Affecting aa Suppliers
Suppliers
Company’s
Company’s Ability
Ability to
to
Serve
Serve
Customers
Customers
Competitors
Competitors Intermediaries
Intermediaries
Customers
Customers
Suresh Chandra.Ch,
Junior Research Fellow 15-5
Customer
Customer Markets
Markets
International Consumer
Markets Markets
Company
Company
Government Business
Markets Markets
Reseller
Markets
Suresh Chandra.Ch,
Junior Research Fellow 15-6
The
The Macro
Macro environment
environment
International
International
Cultural
Cultural Forces
Forces that
that Shape
Shape Economic
Economic
Opportunities
Opportunities
and
and Pose
Pose Threats
Threats
to
to aa Company
Company
Political
Political Natural
Natural
Technological
Technological
Suresh Chandra.Ch,
Junior Research Fellow 15-7
Economic factors:
Suresh Chandra.Ch,
Junior Research Fellow 15-8
Economic factors:
Tax Systems
Investment Considerations and Allowances
Sophistication of Financial Markets – ease with which
capital can be moved and raised
Commodity Prices – oil, energy, metals
Monetary and Fiscal Policies – interest rates, tax
regimes, government aid
Internal Regulation and Bureaucracy – can be stifling!
Exchange Rates
Suresh Chandra.Ch,
Junior Research Fellow 15-9
Macro economic factors
• Macro economics is the study of the entire economy in terms of
the total amount of goods and services produced, total income
earned, the level of employment of productive resources.
• These factors include:
1. Demography and income distribution
2. Consumption patterns
3. Economic indicators (GDP, rate of unemployment and rate of
inflation)
4. Financial indicators (value of local currency with $, money supply,
factor income, corporate bond yield etc.)
5. Economic system
Suresh Chandra.Ch,
Junior Research Fellow 15-10
Micro economic factors:
• Factors surrounding a specific product or market
concerning the competition rather than a country’s
overall economic environment.
• The factors to be considered are:
1. Financial variables (capital acquisition, interest rates for
commercial borrowings, projected investments,
exchange rate fluctuations etc.)
2. Marketing variables (size and potential, distribution,
promotional costs etc.)
3. Product market engineering variables (availability of
raw material for building infrastructure, accessibility
factors etc.)
Suresh Chandra.Ch,
Junior Research Fellow 15-11
Political factors:
Suresh Chandra.Ch,
Junior Research Fellow 15-12
Political factors
• Exchange control
• Import restrictions
• Market control
• Tax and human resources controls
• Antiglobalization movements
• Civil wars
• Labour unrest
• Protest by the people
Suresh Chandra.Ch,
Junior Research Fellow 15-13
Legal factors:
Suresh Chandra.Ch,
Junior Research Fellow 15-14
Cultural factors
Culture refers to the distinctive way of life of a group of
people.
Culture can provide:
1. New opportunities for local communities to share skills
and generate incomes
2. Local-level development through communities using
their diverse social, cultural and economic resources.
3. Strengthening social capital
4. Diversifing strategies of human development and
capacity building for knowledge based dynamic
societies.
Suresh Chandra.Ch,
Junior Research Fellow 15-15
Cultural factors:
Cultural factors include:
1. Language (powerful source for communication)
2. Social institutions (family, education, political structures,
media etc.)
Suresh Chandra.Ch,
Junior Research Fellow 15-16
Natural
Natural
Environment
Environment
More
More Government
Government
Intervention Intervention
Factors
Affecting
Higher
Higher Pollution
Pollution the Shortages
Shortages of
of
Levels
Levels Natural Raw
Raw Material
Material
Environment
Increased
Increased Costs
Costs
of
of Energy
Energy
Suresh Chandra.Ch,
Junior Research Fellow 15-17
Technological
Technological Environment
Environment
Rapid
Rapid Pace
Pace of
of High
High R
R&&DD
Change
Change Budgets
Budgets
Issues
Issues in
in the
the Technological
Technological
Environment
Environment
Focus
Focus on
on Minor
Minor Increased
Increased
Improvements
Improvements Regulation
Regulation
Suresh Chandra.Ch,
Junior Research Fellow 15-18
Analyzing global environment
• Emergence of new economic powerhouses
• New direction in global engagement
• Changing consumer demographics and
expectations
• Changing nature of competition
• Emergence of global services economy
• Advent of new technologies
• Growing transparency of corporate practices
Suresh Chandra.Ch,
Junior Research Fellow 15-19