Executive Summary
In this business report, we are focusing on studying Dick Smith Electronic (DSE) Retailer Shop which is selling HP Multi-Function Deskjet F2280 A-I-O printer. It will provide the information about DSE company’s background, electronic retailing industry’s background and Micro and Macro environments of the company. What’s more, it will present the market of product by comparing to the competitors and targeting to the demographic segmentation of the market which are those studying in university and graduate from high school and, as well as the ones who are having a professional job. Moreover, the products provided by HP attract the customers by famous brand name, low price and high quality. The environments around the DSE
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Associated with ‘societal marketing concept’ by Kotler, the market should call for societal responsible marketing (McDaniel et al).
3.1.2 Natural Environment
A shortage of raw material, such as oil, gas and water, requires the market to provide more green products to fit in with the environmental needs and satisfy customers’ green value at the same time. Yukinori and Kazuhiro state that there is an environmental problem and resource-related issue that company should make a policy to against that (Yukinori & Kazuhiro). For instance, DSE can buy more green products or buy from some company running recycling program to sell. HP Company is also running the recycling program in a responsible way (as cited in Michael Bonsiewich). Furthermore, DSE can make some discount for customers on environmental products to be responsible to this market.
3.1.3 Economic Environment
People are having higher incomes; as a result, they will have more capacity to pay for the high-tech product with higher price. It will challenge the market to be competitive to earn consumers’ loyalty (Kotler et al, 2007, p180) Figure 1 Wages Growth (Australian Bureau of Statistics, 2009) 3.2 Micro-environment
The environment that influences the organizations’ marketing including four factors, market intermediaries, customers, competitors and publics, is the microenvironment of the organisation (Kotler et al, 2007, p163)
3.2.1 Competitors
In this
assuage any guilt they might feel about consuming mass quantities of unnecessary, disposable goods by dutifully tossing these items into their recycling bins and hauling them out to the curb each week”. (Westervelt, Amy. "Can Recycling Be Bad for the Environment?" Forbes. Forbes Magazine, 25 Apr. 2012. Web. 5 Dec. 2015). So why is the reason that companies are starting to “Go Green”? Its clearly obvious that the change in America from an industrial country to a environmental country has taught big business how to market environmentalism in mass quantities of their product. The strategy of the consumption-environment mindset are increasing rapidly. If this trend of buying without thinking does not slow down, with problems like not shifting priority from consumption to being environmentally aware, things will certainly worsen. On the topic of green marketing, people often see that green marketing refers to the advertising of objects or products with environmental characteristics to them (Like the Nestle bottle, for example). Terms like “Environmentally Friendly”, “Refillable”, and “Recyclable”, are some of the things people associate with green marketing. In reality
‘Marketing is the social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.’ - Kotler
In 2004 The Home Depot’s (THD) Eco Options program began in their Canadian locations and on Earth day of 2007 in the United States. The program was created to create environmentally friendly products to consumers that would support the environment while helping consumers save money on their monthly energy bills. The programs successful audience is a combination of two groups. The first group is involved in supporting the environment while living an ecofriendly lifestyle while the other group is mostly concerned about the money saving aspect of using the products. In contrast, there is a broad audience that THD EO’s program is not successfully reaching which is made up of mainstream consumers who care about the environment but don’t bother to inconvenience themselves with adjusting to using ecofriendly options. Consumers of the programs are middle aged people who are in the market for appliances. They need home improvement needs and appliances.
Moreover, the growing number of conscience consumers was highlighted in a recent Bursen-Marsteller report; “people will more likely choose a product that supports a social cause when choosing between otherwise similar products” (Penn, Schoen & Berland, 2010). These average consumers daily decisions are slowly but surely being influenced by social concern and responsibility. Finally, the critical issue for Company Q is the social responsibility to its customers, who looks to business to provide them with satisfying, safe products and respect their rights as customer.
I guess marketing could be defined as the parent of potential customers, whose responsibility to the company is to identify the human and social need of the market. Marketing itself has its own responsibilities. In order for a company to have an (Kotler, 2012) effective internal marketing is must also be matched by a great sense of ethics, values and social responsibility. Social responsibility is becoming a key part of a company’s marketing plan. Now a days, a lot of firms have decided to take a more active and strategic role in corporate social responsibility. It (Smith, 2011) is generally believed that firms with good social responsibility may attract better employees and increase current employees' motivation, morale, commitment, and loyalty to the firm. Success goes beyond the profits, the most admired company’s such a Proctor & Gamble live by a code of serving peoples interest. For many corporations social responsibility has become a part of their marketing strategy. Most consumers are looking beyond the pricing of products. Present day consumers have a much higher expectation of brands and they want to know what the companies are doing to help out with the community and world. When a company becomes successful because of the community around them, there should be a responsibility to the community to give back. This is similar to the obligation we have to ourselves, our family and our Lord and Savior Jesus
However, despite signalling contemporary marketing to focus on the understanding of behaviour change, the nature of social marketing may present itself as a rival to contemporary marketing in the commercial sector. General marketing thinking involves maximising profit for practising organisations. On the contrary, social marketing seek to improve the welfare of target consumers and the society they are in. For instance, tobacco companies wish to sell more cigarettes to earn more profit but social marketing campaigns discourage smoking. It can be deduced from the above case that some behaviour changes social marketing pursues contradict the capitalistic objective of mainstream marketing theory.
A macro business environment is inclusive all elements, that are out of the business’ control, that has direct and relative influence on strategic planning and goals. The microenvironment, includes current and any changes in local, state, federal and international laws and regulations. Laws and regulations literally dictate how a business regardless, of its sector, the guidelines of its operations. The state of the economy, consumer market and spending trends are also a major factor in the macro environment equation. The purchasing power, of the consumer, is vital for any business sector to succeed. In today’s technology driven society, it is utmost importance, that a business is, within the established perimeters of technology for their industry, or on the cusp of the cutting edge of technology. If a business has effective and efficient technology, across the board, in force, it can potentially cut costs and drive consumers to them. A business’ demographics
The market environment consists of both the macro environment and the micro environment. On macro environment the firm need to follow it and they can’t to control it. It consist variety of external factors that is economic, social, political, legal and technological. In the macro environment the firm should analyze national political issues, culture and climate, key macroeconomic conditions, health and indicators (such as economic growth, inflation, unemployment, etc.), social trends/attitudes, and the nature of technology's impact on its society and the business processes within the society. The microenvironment refers to the internal environment of the company such as consumer/customer, Supplier, competitors, the media (public) and in
Micro-Marketing and Macro-marketing have to completely different meanings. According Basic Marketing the 9th edition by William D. Perrault, Joseph Cannon, and Jerome McCarthy define micro-marketing concerns the marketing activities of an individual firm, whereas macro-marketing deals with how the whole marketing system works (Perrault, Cannon, McCarthy 2014, p 526). I will be discussing organizational domestic and international, micro and macro marketing impacts on business and society, and identifying environmental elements that affect their marketing strategies.
Social responsibility and marketing ethics are natively controversial , continues research in this area represents conflicts and challenges addressed to marketers in respect to socially responsible approach to marketing activities(Laczniak and Murphy, 1993; Smith and Quelch, 1996).The aim of the essay is to explain arising phenomenon of Ethical consumption by the use of related theoretical frameworks, as well as explaining Fair Trade and paradoxes of ethical consumption in
This assignment will initially describe social marketing and then indicate how corporations affect stakeholders through companies’ social marketing and responsibility. Following that, the importance and functions of corporate social responsibility (CSR) and social marketing will be demonstrated. Finally, it will explain how organizations reflect CSR and make a short conclusion to indicate the relationship between social marketing and CSR.
Societal Marketing: The marketing idea that they first asses the needs of their target market and then attempt to directly attack the market than
This essay will discuss the marketing environment as a whole, and will look in detail at certain aspects
Marketing environment is in relation to the marketing organization, its internal environment, microenvironment, and macro-environment. In the macro- environment, we identified several forces at play – political, economic, sociocultural, technological and legal (commonly referred to as the PESTL model).
Microenvironment- microenvironment surrounds the factors that are close a company that affects their ability to serve their customers, this would include; Customers, suppliers, competitors, other departments within the company, general public, marketing intermediaries and finally members of the distribution channel. These are all forces that closely influence the company and they have a direct affect on the organizations relationship. The suppliers of a company are a part of the microenvironment as even if there is a slight delay in receiving any supplies off the suppliers can result in the customers not being satisfied. Marketing intermediaries are the people that are helping to promote and sell the companies products. Competitors include companies that are offering the same or similar products, for example; Morrisons, Tesco and Asda are all in competition with each. It is in the company’s best interest to develop a strategic advantage over their competitors, encouraging customers to come to them not their competitors. This would include Tesco giving you vouchers for any price difference with their competitors ( if your total bill comes to more than it would in one of the competitor stores then you are given the