ExternalEnvironmentintheAsiaPacificRegion.pptVIP

External Environment in the Asia Pacific Region Asia-Pacific Marketing Federation Certified Professional Marketer Copyright Marketing Institute of Singapore Outline Introduction The Company’s Microenvironment The Company’s Macroenvironment The Competitors Porters Five Forces Model Introduction Definition: The Company’s environment consists of the actors and forces outside marketing that affect marketing managements ability to develop and maintain successful transactions with its target customers Kotler et al, 1994 Introduction (cont’d) Companies must evaluate both micro and macro-environment to identify any trends that may affect their marketing strategies, and opportunities that can be developed into competitive advantages Porters Five Forces model analyses market structures to determine market attractiveness taking into consideration the micro and macro environments in its construction Company’s Microenvironment Relates to the internal forces or forces close to the company over which some control is possible Top management Other functions e.g. finance and accounting, R D, manufacturing and purchasing Suppliers Marketing intermediaries (channel partners) Customers Competitors Public Company’s Macro-environment Relates to the larger forces having an impact on society as a whole A company has little influence on these forces and therefore can only adapt its marketing mix to account for the resulting opportunities and threats Major forces of the macro-environment Demographic Economic Natural Technological Cultural Political/legal Demographic Environment Demographic trends: Changing age structure Changing family structure Geographic shifts in population Higher education level more white collar job holders Increasing globalization of cities such as Singapore Economic Environment Economic trends affecting consumers buying power and spending pattern Change in per capital real income Disposable Discretionary Income distribution Savings debt Consumer ex