MARKETING ENVIRONMENT
Introduction:
A variety of environmental forces influence a company’s marketing system. Some of them are controllable while some others are uncontrollable. It is the responsibility of the marketing manager to change the company’s policies along with the changing environment.
According to Philip Kotler, “A company’s marketing environment consists of the internal factors & forces, which affect the company’s ability to develop & maintain successful transactions & relationships with the company’s target customers”.
The Environmental Factors may be classified as:
1. Internal Factor
2. External Factor
External Factors may be further classified into:
External Micro Factors &
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Public: A Company’s obligation is not only to meet the requirements of its customers, but also to satisfy the various groups. A public is defined as “any group that has an actual or potential ability to achieve its objectives”. The significance of the influence of the public on the company can be understood by the fact that almost all companies maintain a public relation department. A positive interaction with the public increase its goodwill irrespective of the nature of the public. A company has to maintain cordial relation with all groups, public may or may not be interested in the company, but the company must be interested in the views of the public. Public may be various types. They are: a. Press: This is one of the most important group, which may make or break a company. It includes journalists, radio, television, etc. Press people are often referred to as unwelcome public. A marketing manager must always strive to get a positive coverage from the press people. b. Financial Public: These are the institutions, which supply money to the company. Eg: Banks, insurance companies, stock exchange, etc. A company cannot work without the assistance of these institutions. It has to give necessary information to these public whenever demanded to ensure that timely finance is supplied. c. Government: Politicians often interfere in the business for the welfare of the society & for other reasons. A prudent manager has to maintain good
Management is faced with many decisions when considering the environmental factors that affect marketing. This includes global economic interdependence, demographics, cultural differences, social responsibility, ethics, and technology. It is imperative for a company to understand how these factors can greatly affect the outcome of a company’s marketing plan.
Quick and fast changes in an environmental market place such as social growth (globalization and the growth of social networks), economic instability (crises), industrial progress, fast growing competitive world and firm marketing regulatory mainly have an effect on the work of most of marketing companies or marketing and brand image divisions of the companies. In order to put into practice a winning marketing plan or a boost in sales and customer awareness companies have to stay in pace with the new marketing environment and take into thought every likely detail that might help out or ruin the image of a company or product.
Gordon (2011) describes publics as potential or actual audiences connected to various messages. (Rawlins, 2006) furthers this statement by stating that publics “…can be employees, shareholders, political leaders, consumers, etc.” and “…are often segmented even further by demographics, geographics, or psychographics.” (p.133). Grunig and Repper (1992) expand on this saying publics are self formed and identify organisations for attention, essentially meaning publics are groups of people linked by a common interest or problem. PR practitioners according to (Gordon,
Public relations has changed drastically since the early 20th century. In its earliest forms it was more focussed on the idea of publicity and advertisement. However, more recently it has been seen as a way to engage and build relationships between an organization and it’s publics. Public relations deals with promotional activities that foster a positive public image of a company or organization.
Foxtel has used the marketing environment to strategise their marketing scheme in order to regain clientele and maintain profits. The marketing environment is anything that creates an impact on the company (Sharp, 2013, p. 185). In this situation the elements of the marketing environment concerning Foxtel include the competitors and the customers. These factors
PublicsPublics defined as any group that perceives it having an interest in a company's ability to achieve its objectives. The publics include financial publics, media publics, government publics, citizen- action publics, local publics, general publics and internal publics. For example, the media public has greater influences to the Starbucks Company through the promotions and advertising on articles. The readers can be the customers for the company. Starbucks company priority is the social responsibility. Therefore, it would mean the public is always attracted to the Starbucks's performance.
The success of a company depends on relationships with the public such as consumers, suppliers, investors, employees, government and media. Since public relation practitioners are the once who do the actual communication between their organization and its public it is obvious that public relation is a management function.
This essay will discuss the marketing environment as a whole, and will look in detail at certain aspects
The use of corporate communication to describe the Public Relations practitioner has recently gained an acceptance among scholars and practitioners (Groenewald, 1998:58). Moreover, the term could be used interchangeably to showcase that the function of Public Relation or corporate communication involves both internal and external communications of an organisation (Steyn, 1999). Cornelissen (2011) observed that corporate communication apart from coordinating all the interactions that goes on both within and outside the organisation, it also involve establishing and maintaining constructive reputations with stakeholder groups upon which the organisation is
The theory explains that the value of public relations in organization and society lies in socially responsible managerial decisions and quality organization to public relations. Organisations must behave in ways that solve the problems and satisfy the goals of the stakeholders as well as the management in order to be effective. Good relationship with organisation’s strategic publics is helpful in developing and achieving goals desired by both the organization and its publics, reducing costs of negative publicity, and increasing revenue by providing products and services needed by stakeholders. Practitioners identify publics who are affected by or affect organizational decisions and communicate symmetrically with them to build high quality long term relations.
Because they have a large degree of understanding of the public relations is an image of the establishment of business or put more persuasion efforts for business. The reporter general agree PR is in a public image, propaganda, persuasion activities, as well as marketing efforts, and promote the organization 's position. As the role of public relations become more diverse and important, public relations progress toward becoming the subject of strategy management, it is essential for public relations to the strategy. And to a wide range of business functions integration marketing communication (IMC) concept of the functions of public relations as a commitment to development a of an organization and its product, the image and the impact of the public or the consumer in the campaign of behavior(Ha, JH, & Ferguson, MA 2015).
Harlow (1976) as sited by Tench and Yeomans (2009, p.4) “Public Relation is a distinctive management function which helps establish and maintain mutual lines of communication, understanding, acceptance and cooperation between an organisation and its publics; involves the management of problems or issues; help management to keep informed on and responsive to public opinion; defines and emphasises the responsibility of management to serve the public interest; help management keep abreast of and effectively utilise change; serving and early warning system to help anticipate trends; and uses research and ethical communication techniques as it principal tool”.
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).
The public relations tactics in relation to the corporate context will now be examined. Customer relations can be associated with the monitoring of attitudes of key publics and stakeholders especially in regards to any negative incidents that have the potential to effect the organisation’s reputation and consumer trust (Wilcox, 2013, p.312). For Malaysian Airlines, this is evident given the potential for consumer boycotts with the missing aircraft’s (Crossman Communications, 2015, p2). Having over 12, 000 employees, employee relations are important for the organisation. Employee relations consist of monitoring employees’ attitudes and beliefs towards the organisation (Wilcox, 2013, p316) as there is potential for negative word of mouth by employees essentially damaging the company’s reputation. This is evident as according to Malaysian Airlines, they offer a “dynamic exciting environment that nurtures a diverse talented team that work to make great things happen” (2017). Finally, media relations are vital in a corporate context as “negative coverage can cause a corporation’s reputation to plummet” (Wilcox, 2013, p. 310). Having said that, it is important as public relations professionals to establish positive relationships with those who operate in the media industry. Kimberly Blessing argues the two fields (public relations and journalism) have an important working interrelationship with “60% of PR
As the name of the discipline implies, public relations is how an organization builds beneficial relationships with its key stakeholders. With effective communication as the practices’ primary tool, modern day organizations have taken advantage of proficient practitioners to boost exposure of their company and its message across to international audiences.