Week 2 Marketing Notes PDF

Week 2 Notes P.S. \*BOTH MICRO AND MACROENVIRONMENT CANT BE CONTROLLED, SO ONLY MONITORED, can be influenced by marketers \*both micro and macro are only factors that help organize and make the company a step further than other competitors \*R&D = research and development Internal Environment...

Week 2 Notes P.S. \*BOTH MICRO AND MACROENVIRONMENT CANT BE CONTROLLED, SO ONLY MONITORED, can be influenced by marketers \*both micro and macro are only factors that help organize and make the company a step further than other competitors \*R&D = research and development Internal Environment - \*Able to be controlled, employees can be motivated and help make the company's success - Creating, communicating, and exchanging/delivering value - Different departments working together internally -\> work towards achieving the company's objectives - This consists "Company Structure", which is divided into : - Senior Management: the one who sets the company's objectives, visions, and missions - Middle Management: required and responsible for performance ; clearly aligns with the vision that the senior management have set - Functional Departments : responsible for the performance of their own specific department. In which are divided to : - Marketing = advertisement - Sales - R&D = researching if the products is the same with competitor, or making a launch or a new product, developing them - Manufacturing = operational and manufacturing of goods and service, to deliver them to customers - Finance = taking care of all the financial departments, outcomes, and planning. Ex: sales, revenue. Finance department will give money to sales. Sales will need to uphold those money and give a better performance, by giving half or some of the money to the marketing department, increasing their work performance - Human Resources = required to take in talents - Employees - External Vendors Microenvironment - Specific and immediate to your organization - Direct and indirect competitors of your organization - Can not be controlled, but can be influenced by the marketers - The 3 parties who are part of the micro environment : 1. Customers and Clients a. Serve 2 main types of markets i. Business to Consumer Markets (serving consumers locally and internationally. Ex : retailers clothes, food, woolys, coles) ; can also ship them internationally ii. Business to Business Markets 1. Clients and other business ; ex : IT company sells software to Monash company 2. Reseller Markets ; ex : purchasing products in aus but is manufactured in china 3. Government markets ; ex : providing offers to the department of defense , police car 2. Partners b. Other companies that marketers work with in order to create value for customers c. Should be mutually beneficial and abide by the agreements that have been set d. Partners include : iii. Logistics = help move a good to another destination ; help with storage and transport ; stock all the inventory in the warehouse and stock them when the goods are no more in a more timely manner iv. Financiers = provide companies with financial services, ex : banking loans, insurance, electronic payment systems, and processing systems (not just for individual customers but also for companies) v. Advertising Agencies = trust by marketers into targeting the right consumers to the right market ; have a lot of knowledge and information of the evolving needs and wants of the customers ; promote products in different media channels, both traditional and online vi. Retailers = stores designed to service the end consumer, ex : woolys, nike, adidas, Uniqlo. - If they sell products made by others = reseller, ex : 7/11, online shops, etc vii. Wholesalers = purchase products from manufacturers, then resell to retailers - Intermediary acting between the producer (manufacturer), buying them, then selling them to consumers, ex : Costco viii. Suppliers = provide necessary resources for organizations to produce their market offers - Can have both positive and negative impacts based on quantity, quality, timeliness (should have availability so it can be provided in a timely manner based on consumers demand) ix. Competitors = facing a wide range of competitors, so the organization must provide greater customer value and satisfaction to the consumers - Facing competitions with both international competitors and international markets - Types of competition and markets : - Pure Competition : many buyers and sellers, with similar offers and minor changes with different brands and types (ex : pure milk, skim milk, chocolate milk) - Monopolistic Competition : many buyers and sellers, but giving different offers (ex : clothes \[shirt, dress, jeans\], the quality of clothes, the price of the clothes) - Oligopoly : many buyers but few sellers, products can be similar or different (ex : pharmaceutical company, oil, electric cars) - Monopoly : many buyers but only one seller (ex : southeast water, PTV) 3. Competitors Macroenvironmental - PESTEL -\> Political, Economic, Sociocultural, Technological, Environmental, Legal - With the changes and knowledge of PESTEL, the organization can improve better decision-making and approach accordingly, proactive and reactive approaches - PESTEL : - Political Force - the impacts on politics on marketing ; come up with laws and regulations ; politics, law, and regulation from the government's political department (ex: free trade policies, taxes,etc) - The major considerations include : - political environment should be stable - influence of government policies (high and low prices of goods in local and international markets) - government trade agreements - taxation and government rebate policies (elderlies lower or free myki, etc) - Economic Force - Affects changing economy on both organizations and customers (ex : trends, interest rate, inflation, etc) - If required, the products' price should be increased and decreased accordingly - Changes include : - Interest rate, economic growth (GDP), and consumer confidence - Income levels, savings, credit, and saving levels - Inflation, employment and unemployment rate - Exchange rates and balance of trade - Sociocultural Force - Demographics factor (value, beliefs, age, gender, healthy/unhealthy, marriage/single, etc) and cultural factors - Market should understand the changing demography (population trends) and culture within the marketplace - Technological Force - Released medical wonders and destruction (both positive and negative impacts) - Perhaps the most dramatic force shaping our future - New technologies replace the old technologies, creating markets and new opportunities (technological advancements) - Environmental Force - Changes in the natural environment or ecosystem (water pollution, climate change, air pollution, etc) - Legal Force - Impact of laws and regulations - If laws are not complied, then penalties will be applied - Duty as a company is monitoring the laws and abide to them completely - Ex : data protection laws, sustainable laws, work related laws (minimum wage) Responding to the Market Environment - Proactive - Did not wait for the customers to inform and complain, and react - They tell the customers immediately - Changing it by influencing the market behaviour (recommended step) - Reactive - After happening, then the customers will complain, and they will react