What is market environment? Describe the macro environment and micro environment of marketing.
ANSWER:-
Market environment is the combination of external factors and force that affect the company's ability to establish a relationship and serve it customers the marketing environment of a business consists of an internal and an external environment.
The internal environment is company specific and includes owners, workers machines material.
The external environment is further divided into two component micro and macro.
The macro or the task environment is also specific to the business but is external It consists of factors engaged in producing, disturbing and promoting the offering.
The macro or the board environment include larger socieatal force which affect society as a whole it is mape of six component demographic economic, physical technological political ugal and socio-cultural environment.
MACRO ENVIRONMENT:-
The macro component of the marketing environment is also known as the broad environement. It constitutes the external factors and forces which affects the business, the macro environment can be divided into 6 parts:-
1. Demographic Environment:-
The demographic environment is made up of people who constitute the market. It is characterised as the factual investigation and segregation of the population according to their size in technology alternatives innovation documents also technological to barriers to smooth operation technological is one of the biggest sources of threats and opportunities for the organisation and it is very dynamic.
2. Political-Legal Environment:-
The political legal environment includes laws and government policies prevailing in the country. It is also includes other pressure groups and agencies which influence or limit the working of the industry and or the business in the society.
3. Social-Cultural Environment:-
The social-cultural aspects of the macro environment is made up of the lifestyle value culture prejuidences and brief of the people. This differs in different regions. density, location, age; gender race and occupation.
4. Economic Environment:-
The economic environment constitutes factors that influence customer's purchasing power and spending pattern these factors include the GDP, GNP interset rate inflation income distribution government funding and subsidies and other major economic variable.
5. Physical Environment:-
The Physical environement includes the natural environment in which the business operates their include climatic condition, environemntal changes accesibilty to water and raw material natural disaster pollution etc.
6. Technological Environment:-
The technological environment constitutes innovation research and development is the difference between macro environment and micro-environment may be relevant to identitity in the following table.
| point of difference | macro environment | micro environment |
|---|---|---|
| meaning | external environment of an organization | inter environment of an organization |
| nature | very complex | less complex to preceive |
| the task of the marketer | marketer interacts with the element prevailing outside the organisation. | the marketers interacts with other functional area of the organisation. |
| extent of control | factors remain beyond the control of marketers. | factors may controlled large extent by a marketers. |
| impact | it create a huge impact on shopping marketing decisions. | remains comparatevely independent are shaping marketing decison. |
| function | factors may create an opportunity and a pose that to the marketing activities of an organization. | factors reveal the capabilities of an organization to exploit the opp, or to combot the threating through it marketing activities. |
What do you understand by the terms discount and allowance. Explain various type of discount and allowance given by the manufacture to various type of buyers with example?
ANSWER:-
The basis discount and allowance and reductions in a products base price they can happen at any point in the distribution chain changing the manufacturing short terms sales moving out of dates product rewarding loyal customers encourage distribution channel members to exect a functions or rewarding actions that benefit the discount issues.
1. Quantity Discount:-
The basis for quantity discounts lies in the general notion of economic of sales. It is seller of a product more and thus reduce unit costs of production. Distribution and marketing expenses are also reduce.
Such a discount is granted for volume purchase either in a single purchase or over a specified period of time.
2. Trade (or Function) Discounts:-
Trade discount are usually provided to middlemen for the function they perform in the distribution of commodities for this reason trade discount are often called function discount for example book seller in India. Get such discount from publishers at the say 20%, 25% 33r3% on order of say 5-50, 51-100, 101 and above respectively such successive discounts represent a system of graded incentives.
For example the new central book agencies of cultutta provided a normal trade discount of 20% on all ordeers but UBSPD and other leading distribution get 30% because they in their turn offer 25% discount to their relatilers on bulk order of 100 are more copies an additional discounts of 5% is given to UBSPD.
3. Promotional Discounts:-
Such discount are given to distributors an allowance efforts to promote the manufacture products through local advertising special displays or other promoting.
These allowance may take the form of a percentage reduction in the price or they may be an outright cash payment either to the distributors or to the promotional vechile i.e, a local newspaper.
4. Seasonal Discounts:-
Business condition never run smooth to the periodic fluctuations in the level of business activing the name.
Business cycle is given and in really industries that are charactised by significant but never fluctuation in volume may offer a discount to customers who purchase the goods at non-peak hours.
For example:- hotels in darjeeling are available at a discount in the winter month again electric fans are often offered at special reduced price at time other than summer months.
5. Cash Discounts:-
A cash discount is a reward for the payment of an invoice or account within a specific time period for example the culcutta electric supply corporation provide to discount all customers who pay their bills on or before a schedule date from the seller viewpoint immediate payment is preffered so that the seller can invest the money for the period. Thus the seller may option offer a discount for an immediate cash payment.
6. Geographical Discounts:-
Geographical discount structures refer to price differential based on buyers localties they are important when transport cost are high relatives to the seller price siwa the manufacture can then gain from difference in transport cost due to varying distance between the location of plant and customers.
Write Short Notes on the following :-
(a) Societal Concept:-
Societal marketing emplisizes social responsibities and suggest that to sustain long term success, the company should develop a marketing strategy to provide value to the customer to maintain and importance both the customers and society's well-being better than the competitions.
The societal marketing concept has developed from the conflict between individual consumer's short term needs and society long-run well being.
Philip kotler defines it as "the social marketing concept holds that the organization task is to determine the needs/ wants and intracts of target markets and to deliver the desired satisfaction more effectively and efficiently that competitors in a way that presences or enhance the consumer and the society's well being.
(b) Brand Repositioning:-
Brand repositioning occurs when you make changes to what your customers associated with and except from your brand. When you reposition your brand, you maintain the brand identity that you have.
You want to target a different audience. The audience you were intially targeting may no longer be viable this can happen for numerous reasons. You may have targeted a specific age group that has grown up and no larger well your product or service. Perhaps there's more promose in another audience than the one you can currently targeting for example, Maroro cigrates were used more by name in the 1980 until they began producing mp3 player and smartphones.
You sales are trendy downwards. One of the mass obvious reasons to consider reporting your brand is if you sales are trendy downwards. As the part, a change has to be made to prevent to trend from contining done.
(c) Consumer Goals:-
Consumer goods are products brought for consumption by the arrage consumer. Alternatively called final goods. Consumer goods are the result of production and manufacturing and are what a consumer will see stocked on the store half. Clothing food and jewellery are all examples of consumer goods. Basic or raw material, such as cooper, are not considered consumer goods because they must be transfromed into usable producer. Consumer goods are goods sold to consumer for use in the home or school or for recreates and or personal one. There are three main types of consumer goods:- 1. durable goods , 2. non durable goods, and 3. services
Durable goods are consumers goods that have a long-life span and are used over time. Examples include bicycle and refrigerator. Non-durable goods are consumer in les than there year and have been short lifespan. Example of non durable goods include food and drinks. Services include auto repairs and haircuts.
Unsought consumer goods are readily available but are purchased by a few member of the available market. There items are not usually purchased repeatedly and usually service specific needs such as life insurance.
(d) Advertising Media:-
Advertising media is the medium through which an advertisement is delivered to the public. It carries newspapers way to maves and then purchased repeatedly.
Advertising media plays a significant roll in binding the direct communication relationship between the seller and the buyer.
Advertising is a parallel universe. It is the most powerful medium through which any thing in our mind. Thaught and frame can be conceptualized and presented in the worked and most improvely to the largest audiance and beyond.
If the right way of advertising is chosen, anything can get marked easily.
Advertising has become an easy yet difficult job to catch viewer's attention for a more extended period in today's world none everyone is exposed to technology at the internet. Therefore laowing want to deliver, and how to deliver, who to deliver is a significant once for advertise.
well, with the help of the fantastic advertising media people can easily let others know about the brands, products and services that they have in the but way this is really great for sure.
Differnce between the following:-
(a) Related and Unrelated product diversification:-
Unrelated diversification involves no common strategic fit of the diversified firms line of business. A firm that is running any avenue that ray generates profile rather than being conduct with creating a strategic fit. There are several criteria to examine when considering unrelated diversification. Business onwhat examine whether try can be meet targets for profitabililty and return on investment.
If the business will require substainal capital infuwsion, if me businesss is an industry with growth potential. If the business is big enough to contribute to the purest firms's growth, if there is potential for union or legal difference and of the buying is untrue to recession, inflation or high interaction rates.
(b) Predatory pricing and price discrimination:-
Predatory pricing, as the name suggests, is a pricing concept that is considered a predatory move by an organization. As per this strategy, that press and laps at such a lower rage that a becomes difficult for anyone etc to match it.
Predatory pricing drives away potential as well as existing rival contendors. It results in a set monopoly situation as there aer way few or negligible competitions left in the field.
Price discrimination refers or a pricing strategy that changes consumers different prices for identical goods or services.
ABL Food Ltd was a popular grocery store that was always buy as it offered fresh groceries to its customer. An internation brand opened its outlet in the same locality and started selling fresh groceries along with related products as nearby the same price.
(c) Consumer Markets and Organisational Markets:-
Both individual and organization need to purchase items to accomphics their daily taste. There is a large difference, now in how and why an organization purchase goods and services versus how an individual shops. Understanding there difference is important if you want to up into both an organization and a consumer market.
Consumer buying analysis is made up of the day to day purchases that individual make to satisgy their needs. This is know as the consumer market.
The global consumer market is made up of billions of individuals. There individual naturally differs prealty in cape, income level, education and personal tastes. Consumers, collectively purchase a bored range of products and services, and their ability to pick and choose which products and service to buy drives the larger economy there choices result from several faching cultural, social, personal and psychological.
(d) Push and Pull promotion strategies:-
A push promotional strategy works to create customer demand for your product or services through promotion for example, through discounts to retailers and trade promotion applealilng package design and maintaing a reputation for reliability, value or style are also level in push strategies. One example of a push strategy is mobile shones sales. Where manufacturer offer discounts on phones to encompase for example, through point of sale displays and directj approaches to customer.
Pull Promotional Strategy:-
A pull promotional strategy well advertising to build up customers demand for a product or service for example, advertising children's toys on children's television shows is a pull strategy then children asks their parents for the toys, the parent ask the retailers and the retailers order the toys for the manufacturer other pull strategies include sales promotion, offering discounts or two for offers and building demand through social media sites such as youtube.
Comment briefly on the following statement.
(a) Skimming price is appropritate for a product that is a redinnovation.
Price skimming is a strategy that business with strong brnads commonly use to maximize profits by initially changing the discount possible price for the innovative new product and then gradually discountly the price over time to target (skim) move price-sensitive customer segments of the market. Done successfully the business can quickly recover the costs of bringing the new product to market before competition sells in the main benefit to using a price skimming strategy is to now quickly recover per costs of the research and develop (R&D) of how products for example, the cost of develop a new prescription drug including R&D testing trial, and FDA approving, can exceed $2 billion.
Price skimming works well for companies that have a way strong bone and a reputation for quality. Loyal, well helds store conscious consumers are often happy to be early adopters of products from companies such as purchase or merceeds for instance, regardless of price.
Now products that are expensively priced and heavily marketed as "innovative" raise high expectations among consumers and if the product does not live up to the hype the high initial price can quickly become a drag on sales and potentially a stain on the brand. For instance, google glass was introduce to the market with great fanframe and a nehopping & 5100 price tag but because are of the work products flops even as was dissoned that a head asstentically unpealling and had no class purpose.
The strategy of constantly price skimming new products can also become less effective over time as consumers become attained to practice and less assemble to paying top dollar for a product than they know they can buy in a few months for a reduced price.
(b) A company tries to stimulate sales during the maturity stage by adopting different modification strategies.
After the introduction and growth stages a product passes into the maturity stage the third of the product life cycle stages can be quite a challenging time for manufacture. In the first two page companies try to establish a market and then grow sales of their product to achieve an large of that market as possible. However, during the maturing stage the primary focus for the most companies well be maintaining their market share in the face of a number of different challenges the product entes into maturity stages. as competition intensifies further and market gets saturated. Profit come down because of stiff competition, and marketing expenditure. The price aer decreased because of competition and innovations in technology.
This stage may last for a long period as in the case of many products with long-run demand characteristics. But sooner or late demand of the product start delivery as new products are introduced in the market. Product differentiation identification of new segments and product improvement are emphasized demy the stage.
In order to long then the period of maturity stage, the following strategies may be adopted.
1. Product may be differentiated from the competitive products and brand image may be strenghed further.
2. Reusable packing may be developed.
3. New markets may be developed.
4. The warranty period may be extended for instance, some manufacture of TV's have introduced the concept of life time warranty.
5. New uses of the product may be developed.
(c) Buying a product is a process ecnompassing different stages:
The first step of the buyer decision process is the need recognition stage then the consumer recognize a need or problem and feels a difference between the actual size and some desired state. They try to find goods to satisfy such needs.
This leads to the second stage of searchinf for information about the product. The consumer tries the find out as much as possible about the product's available brand.
At the third stage is consuming uses the information to evaluates alternative brand.
After, that, the buyer makes the purchase decision at the fourth stage by selecting the most suitable products.
The fifth stage is the post-purchase evaluation, and it is the most importance and depending on the level satisfaction or dissatisfaction, The consumer well become a loyal customer or actively avoid the brand and tells others to do so via online received and worth of mouth.
Let's explain all five stages of the buyer decision process:-
1. Problem or need recognition:-
Need rocognition of problem recognition is the first stage of the buyer decision process. During need or problem recognition, the consumer a problem or need satisfied by a product or service in the market.
(d) A channel of distribution performs a variety of functions such as transactional logistical and facility functions.
Distribution channels provide time, place and ownership utility. They make the product available when where and in which quantities the customers want but other than these transactional function marketing channel are also responsible to carry out the following function.
Logistic and physical distribution:-
Marketing channel are responsible for assempbly storage sorting and transportation of goods from manufacture to customers.
Faciliation:- Channel of distributions even provide pre-sale and post purchase service like finance, maintanc formation descrimination and channel coordination.
Creating efficiences:- This is done in two ways bulk breaking and creating assortments wholesalors and retailers purchase large quantities of good from manufacture but break the bulk. By selling few at a time many other channels or customers and they don't have to visit different retailers or different products.
Sharing risk:- Since most of the channels by the products before hand, they also share the risk with manufacture do everything to sell it.
Marketing:- Distribution of channel are also called marketing channel becuase they are among the core touch points. Where many marketing strategies are executed, they are we re direct contact with the other customers and help the manufactures in propagating the brnad message and products benefits and other benefits to the customers.
Selection of the perfect marketing channel is tough. It is among those few strategic decision with either make or break a company.
