Lecture 4 : The Marketing Environment Flashcards
Microenvironment
factors close to the company that affect its ability to serve its customers
* company
* suppliers
* marketing intermediaries (market channel firms)
* customer markets
* competitors
* publics
Company’s Internal Environment
other departments/functions within the firm such as
top management, Finance Department, Operations Department, R & D Department, etc.
Suppliers
provide the resources needed to produce goods and services and are an
important link in the “value delivery system”.
Marketing Intermediaries
- help the company to promote, sell, and distribute its goods to final buyers
including resellers, physical distribution firms, marketing service agencies and financial intermediaries
Customers
Consumer
Business
Reseller
Government
International
Competitors
similar products and services
against whom a company must gain strategic advantage.
Publics
Financial publics– groups that influences the company’s ability to obtain funds.
Banks, investment houses, and stockbrokers are the major financial publics
Media publics – groups that carry news, features, and editorial opinion. Newspapers, magazines, radio and television
Government publics – government departments and agencies that the company must refer to or consult legal advice concerning regulations pertaining to product safety, truth in advertising, and other legal and statutory matters
Citizen-action publics– consumer organizations, environmental groups, minority groups and citizen groups that may question the company’s marketing decision
Local publics – neighbourhood residents and community organizations located near or are in close proximity of the company. Corporations are expected to support and participate in local activities and events.
General publics – members of the general public that may be interested in the products or services offered by the company and/or indirectly affected by the company’s marketing decision
Internal publics- employees of the company including workers, managers, volunteers, and board of directors who are concerned and are directly affected by the performance of the company. Staff morale, the company’s working climate and company culture reflect the signs and symptoms of the staff attitude and motivation.
shipping microenvironment
The Company
The Shipbuilders/Repairers
Marketing Intermediaries
Charterers (if applicable)
Customers
Competitors
Publics
Shipowners
Shipmanagement Firms (if applicable)
Complement/Support Firms
Harbour and Port Authorities
Unions
The Company
- Main operating arm comprises the fleet
- Shore establishment main task is to service the fleet
- Fleet supplies both product and promotion
The Shipbuilders/Repairers
Suppliers of fleet and therefore determining factor actual capacity of fleet size
* Determine quality of fleet and standard of fleet
Marketing Intermediaries
Middlemen
controls amount of business the company receives
performs the necessary documentation and arrangements prior/after company’s involvement
Logistics/Physical Distribution Firms
acts as physical link between customers and organisation
includes warehousing firms, stevedorage, cargodorage, packing, lighterage, heavy lifts specialists, tally clerk firms
Financial Intermediaries
Not all financial institutions cater for shipping needs. Tends to be confined to certain classes, e.g. trading banks, large international banks
Marketing Service Agencies
Mainly used for passenger services. Trend changing
Charterers (if applicable)
Although dominant in the tramping market, liner companies are willing to charter out if price is right and charter in place.
Customer
Own cargo and others
* Mainly producer markets, reseller markets and government markets
* Vary in size and frequency.
Competitors
within conference
outside conference
with other modes of transport.
Publics
- in addition to the publics listed :
- international publics
union publics. e.g. ITF
Shipowners
trend for ownership to be divorced from management. Growth of professional management firms.
* use of shelf companies by actual owners to limit liability in case of action or arrest of vessel
* usual for registration of ships under foreign flags – tax and political purposes
Shipmanagement Firms (if applicable)
professional management firms that undertake the management of the fleet.
* extent and scope of responsibilities depend on contractual terms. Can range from purely manning to full operation of the fleet.
* in large companies, these firms are usually subsidiary companies where the owners have a very strong controlling interest.
Complement/Support Firms
classification societies
* marine insurance institutions
* surveying firms
* bunker firms
Together these firms provide supporting role to the shipping organisation
Harbour and Port Authorities
regulate the environment under which the organisation operates
* responsible for the safety, licensing and commercial aspect of the environment.
Unions
influencing force in manning levels on board ships
* indirectly and unofficially controls the standard of service offered by the organisation’s
vessels
The Shipping Macroenvironment
Demographic, Economic, Natural, Technological,
Political, Cultural
Demographic
studies populations in terms of age, gender, race, occupation, location
and other statistics.
Economic
factors that affect consumer
purchasing power and spending patterns.
Natural
natural resources needed as inputs by marketers or that are affected by marketing activities
Technological
forces that create new technologies, creating new product and
market opportunities.
Political
laws, agencies and groups that influence and limit organizations and individuals in a given society
Cultural
institutions and other forces that affect a society’s basic values, perceptions, preferences, and behaviors
Demographic examples
- Tremendous growth of world population and in countries that can least afford it
- Change in age structure in developed countries – the “greying” of populations
- Change in family life-cycles in developed countries
- Trend of population masses to move towards warmer climates. i.e. towards the Equator
- Better educated and more white-collar population in developing countries – move
towards service industries - Increase in ethnic and racial diversity
- Stagnation or even decline of birth rates of developed countries against increase in birth
rates in developing and third world countries - Rise of women in the work force
- Growing affluence of developing countries
Economic examples
- Changes in income – growth in upper-middle class in developed and developing
countries - Change in consumer spending patterns
- Economic power of the NICs and the Pacific Basin
- Conglomeration of regional countries into communities
- Slow down in real income growth
Natural examples
- Shortages of raw material, e.g. scarcity of timber
- Increased cost of energy
- Increased pollution e.g. Exxon Valdez
- Higher government intervention in natural resource management e.g. UNCLOS
- Global warming due to depletion of ozone later and resulting in El-Nino and La-Nina
phenomena, and rise in sea-level.
Technological examples
- Face pace of technological change
- Higher R & D budgets
- Concentration on minor improvements
- Increased regulation
- Greater emphasis in biotechnological and information technology, e.g. cloning, internet
- Robotics & Artificial Intelligence systems
- High reliability/automation of systems
Political examples
- Increasing legislation
- Changing government agency enforcement
- Increased emphasis on ethics and socially responsible actions
- Greater international control, e.g. WTO
- Increased internal conflicts and civil unrest – Aceh, East Timor, Kosovo
- Growth of religious fundamentalism
Cultural examples
- Persistence of cultural values
- Shift in secondary cultural values
- People’s views of themselves
- People’s view of others
- People’s views of organisations
- People’s views of society
- People’s views of nature
- People’s views of universe
