Introduction to MarketingIntroduction to Marketing

Presentation and Presentation and DiscussionDiscussion

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IntroductionIntroduction

Marketing is simple, yet Marketing is simple, yet complex. complex.

We are all involved in marketing We are all involved in marketing and: “the enigma of marketing is and: “the enigma of marketing is that it is one of man’s oldest that it is one of man’s oldest activities and yet it is regarded activities and yet it is regarded as the most recent of the as the most recent of the business disciplines (Baker, business disciplines (Baker, 1976).1976).

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Introduction contd.Introduction contd.Marketing came into existence with the first Marketing came into existence with the first barter exchange (e.g. the barter trade in barter exchange (e.g. the barter trade in ancient Egypt, Songhai and Ghana empires ancient Egypt, Songhai and Ghana empires in Africa etc.) when someone realized that in Africa etc.) when someone realized that exchanges add value for both parties.exchanges add value for both parties.This was the first real step forward in This was the first real step forward in economic development.economic development.Marketing has evolved (like other practices Marketing has evolved (like other practices such as architecture, medicine, such as architecture, medicine, engineering) over the centuries to where it engineering) over the centuries to where it is today (Michael Baker).is today (Michael Baker).

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Introduction contd.Introduction contd.According to Peter Drucker, the first According to Peter Drucker, the first test of any business is not the test of any business is not the maximization of profit but the maximization of profit but the achievement of sufficient profit to achievement of sufficient profit to cover the risks of economic activity cover the risks of economic activity and thus avoid loss.and thus avoid loss.Customers are the foundation of a Customers are the foundation of a business and their purpose of business and their purpose of existence.existence.In other words, customers are the In other words, customers are the mainstay of the business.mainstay of the business.

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Introduction contd.Introduction contd.As Peter Drucker puts it: There is only As Peter Drucker puts it: There is only one valid definition of business one valid definition of business purpose: purpose: to create a customer.to create a customer.It is the customer who determines It is the customer who determines what business is…what business is…What the business thinks it produces What the business thinks it produces is not of first importance, especially is not of first importance, especially not to the future of the business and not to the future of the business and to its success in the market place.to its success in the market place.The customer determines what a The customer determines what a business is, what it produces and business is, what it produces and whether it will prosper (Drucker). whether it will prosper (Drucker).

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What is Marketing?What is Marketing?

It is the most interesting, It is the most interesting, dynamic, versatile of all dynamic, versatile of all academic disciplines. academic disciplines.

It is both theoretical and It is both theoretical and practical in nature.practical in nature.

It yields real results in the form It yields real results in the form of profits and/or satisfaction of of profits and/or satisfaction of business aims/objectives.business aims/objectives.

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What is Marketing? contd.What is Marketing? contd.It is a multidisciplinary (economics, It is a multidisciplinary (economics, psychology, sociology, history, statistics…) psychology, sociology, history, statistics…) management process of identifying and management process of identifying and satisfying consumer and organizational satisfying consumer and organizational needs profitably. needs profitably. The aim of marketing is to make profit The aim of marketing is to make profit and/or satisfy business objectives.and/or satisfy business objectives.Thus, overall, it enhances human and Thus, overall, it enhances human and national economic development/progress.national economic development/progress.Compare (a) Advanced countries and Compare (a) Advanced countries and underdeveloped countries? And (b) a underdeveloped countries? And (b) a profitable business and a less profitable profitable business and a less profitable business? business?

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DefinitionDefinitionMarketing is the process of planning Marketing is the process of planning and executing the conception, and executing the conception, pricing, promotion, and distribution pricing, promotion, and distribution of ideas, goods, and services to of ideas, goods, and services to create exchanges that satisfy create exchanges that satisfy individual and organizational goals.individual and organizational goals.

Source: The American Marketing Source: The American Marketing Association(AMA)(see ww.ama.org).Association(AMA)(see ww.ama.org).

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DefinitionDefinitionMarketing is the management Marketing is the management process responsible for process responsible for identifying, anticipating, and identifying, anticipating, and satisfying customer satisfying customer requirements profitably.requirements profitably.

Source: The Chartered Institute Source: The Chartered Institute of Marketing (CIM) (UK) (see of Marketing (CIM) (UK) (see www.cim.co.uk)www.cim.co.uk)

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Recent formal Definition of Recent formal Definition of MarketingMarketing

Marketing is an organizational Marketing is an organizational function and a set of processes for function and a set of processes for creating, communicating, and creating, communicating, and delivering value to customers and for delivering value to customers and for managing customer relationships in managing customer relationships in ways that benefit the organization ways that benefit the organization and its stakeholders.and its stakeholders.

Source: American Marketing Association, Source: American Marketing Association, 2004 2004

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Needs, Wants & DemandsNeeds, Wants & Demands

Needs constitute the basic Needs constitute the basic requirements for the existence of life, requirements for the existence of life, such as food, clothing, shelter and such as food, clothing, shelter and belongingness. belongingness.

A want, on the other hand, arises when A want, on the other hand, arises when the basic needs are satisfied…e.g. an the basic needs are satisfied…e.g. an American needs food but may want a American needs food but may want a hamburger, French fries & a soft drink.hamburger, French fries & a soft drink.

Demands are wants for specific product Demands are wants for specific product backed by an ability to pay.backed by an ability to pay.

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Needs, Wants & Demands(Contd.)Needs, Wants & Demands(Contd.)

Demands are wants for specific product Demands are wants for specific product backed by an ability to pay……e.g. many backed by an ability to pay……e.g. many people want a marcedes; only a few are people want a marcedes; only a few are willing and able to buy onewilling and able to buy one

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Needs, Wants & Demands(contd.)Needs, Wants & Demands(contd.)

It is important for a marketer to It is important for a marketer to understand whether his product falls in understand whether his product falls in the needs category or in the wants the needs category or in the wants category and devise his marketing category and devise his marketing strategies accordingly.strategies accordingly.

The ultimate aim of marketer should be The ultimate aim of marketer should be to motivate customers to consider their to motivate customers to consider their products in the needs category.products in the needs category.

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DesireDesire

Desire is the human appetite for a given Desire is the human appetite for a given object of attention. Desire for a product object of attention. Desire for a product is stimulated by advertising, which is stimulated by advertising, which attempts to give buyers a sense of lack attempts to give buyers a sense of lack or wanting……e.g. in store retailing, or wanting……e.g. in store retailing, merchants attempt to increase the merchants attempt to increase the desire of the buyer by showcasing the desire of the buyer by showcasing the product attractively, in the case of product attractively, in the case of clothes or jewellery, or, for food stores, clothes or jewellery, or, for food stores, by offering samples.by offering samples.

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BenefitsBenefits

Desirable attribute of a good or service, Desirable attribute of a good or service, which a customer perceives he or she which a customer perceives he or she will get from purchasing. will get from purchasing. Whereas vendors sell features ("high Whereas vendors sell features ("high speed drill bit with tungsten-carbide speed drill bit with tungsten-carbide tip"), buyers seek the benefit (the tip"), buyers seek the benefit (the holes).holes).

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ValueValue

The extent to which a good or service The extent to which a good or service is perceived by its customer to meet is perceived by its customer to meet his or her needs or wants, measured his or her needs or wants, measured by customer's willingness to pay for it. by customer's willingness to pay for it. It commonly depends more on the It commonly depends more on the customer's perception of the worth of customer's perception of the worth of the product than on its intrinsic value.the product than on its intrinsic value.

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ExchangeExchange

Exchange, the core concept of marketing, Exchange, the core concept of marketing, is the process of obtaining a desired is the process of obtaining a desired product from someone by offering product from someone by offering something in return. For exchange something in return. For exchange potential to exist, five conditions must be potential to exist, five conditions must be satisfied:satisfied:

There are at least two parties.There are at least two parties. Each party has something that might be of Each party has something that might be of

value to the other party.value to the other party. Each party is capable of communication Each party is capable of communication

and delivery.and delivery.

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Exchange(Contd.)Exchange(Contd.) Each party is free to accept or reject Each party is free to accept or reject

the exchange offer.the exchange offer. Each party believes it is appropriate Each party believes it is appropriate

or desirable to deal with the other or desirable to deal with the other party.party.

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Role of MarketingRole of Marketing Organizational ResourcesOrganizational Resources

Effective match Specification Effective match Specification

ofof Target MarketTarget Market

Customer SatisfactionCustomer Satisfaction

OrganizationalOrganizational Aims/objectives Aims/objectives

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The Marketing ConceptThe Marketing Concept

The Marketing Concept states The Marketing Concept states that if a business or organization that if a business or organization is to achieve profitability, the is to achieve profitability, the entire organization must be entire organization must be oriented towards satisfying oriented towards satisfying consumer needs, wants and consumer needs, wants and aspirations. aspirations.

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The Marketing Concept contd.The Marketing Concept contd.

In other words, The Marketing In other words, The Marketing Concept holds that the key to Concept holds that the key to success is through determining success is through determining the needs/wants/aspirations of the needs/wants/aspirations of target markets and delivering target markets and delivering these more effectively and these more effectively and efficiently than competitors.efficiently than competitors.

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The Marketing Concept (key issues)The Marketing Concept (key issues)

Organizations must concentrate Organizations must concentrate on the customer and not the on the customer and not the product or the company.product or the company.Organizations should revolve Organizations should revolve round the customer and not the round the customer and not the other way around.other way around.The purpose of a business is to The purpose of a business is to create and keep a customer create and keep a customer (Theodore Levitt).(Theodore Levitt).

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Elements of the Marketing ConceptElements of the Marketing Concept

Consumer/customer OrientationConsumer/customer Orientation

Total Organization effortTotal Organization effort

Profitability/achievement of Profitability/achievement of objectives.objectives.

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Criticisms of the Marketing ConceptCriticisms of the Marketing Concept

Do customers really know their Do customers really know their needs/wants/aspirations?needs/wants/aspirations?The choice of either consumer or The choice of either consumer or competitive orientation.competitive orientation.Adapting to change Adapting to change (rigidity,inflexibility of the concept).(rigidity,inflexibility of the concept).Conflict with social responsibility.Conflict with social responsibility.Limits in the applicability of the Limits in the applicability of the concept (e.g. the arts, ideology such concept (e.g. the arts, ideology such as political parties, environmentalists as political parties, environmentalists – greenpeace, religions – – greenpeace, religions – churches/synagogues etc…… churches/synagogues etc……

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Some Criticisms of MarketingSome Criticisms of MarketingToo many advertisements are Too many advertisements are annoying, misleading, or both.annoying, misleading, or both.

There are too many unnecessary There are too many unnecessary products.products.

Middlemen raise prices but don’t add Middlemen raise prices but don’t add value.value.

Marketing makes people materialistic.Marketing makes people materialistic.Most of the criticisms result from Most of the criticisms result from misunderstandings about marketing misunderstandings about marketing (Perreault & McCarthy, 1999).(Perreault & McCarthy, 1999).

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Do you know your market?Do you know your market?What is the product or service being What is the product or service being offered?offered?What are the market trends in the industry?What are the market trends in the industry?What is the market?What is the market?Who are your customers? And what are they Who are your customers? And what are they looking for?looking for?Who are your competitors? And how do they Who are your competitors? And how do they operate/react/behave?operate/react/behave?Why do (should) your customers buy your Why do (should) your customers buy your product/service rather than that of your product/service rather than that of your competitors?competitors?

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What is a Market ?What is a Market ?According to Kotler (2004), “a market According to Kotler (2004), “a market consist of all the potential customers consist of all the potential customers sharing a particular need or want who sharing a particular need or want who might be willing and able (i.e., might be willing and able (i.e., propensity to) to engage in exchange propensity to) to engage in exchange to satisfy that need or want”.to satisfy that need or want”.

Source: Kotler, P. (2004), Marketing Source: Kotler, P. (2004), Marketing Management, Prentice-Hall, Englewood Cliff, Management, Prentice-Hall, Englewood Cliff, NJ.NJ.

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Market TypesMarket TypesConsumer Markets.Consumer Markets.Industrial/Business to Business Industrial/Business to Business Markets.Markets.Reseller (Retailers, Distributors) Reseller (Retailers, Distributors) Markets.Markets.Publics (Government Publics (Government agencies/departments/institutionagencies/departments/institutions).s).International/global Markets.International/global Markets.

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What is Market(ing) Orientation?What is Market(ing) Orientation?The process of applying the The process of applying the marketing concept in the market marketing concept in the market place.place.Maintaining a customer orientation.Maintaining a customer orientation.All departments work together guided All departments work together guided by customer needs/wants/aspirations.by customer needs/wants/aspirations.Focus on profits/objectives.Focus on profits/objectives.

Source: Kohli and Jaworski (1990); Narver and Slater (1990).Source: Kohli and Jaworski (1990); Narver and Slater (1990).

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Market OrientationMarket OrientationProduction OrientationProduction Orientation

--1850s -> 1930s--1850s -> 1930sSales OrientationSales Orientation

-- 1930s -> 1950s-- 1930s -> 1950sMarketing OrientationMarketing Orientation

-- 1960s -> ??-- 1960s -> ??Consumer Relationship Marketing Consumer Relationship Marketing (CRM)(CRM)

-- 1990s -> ??-- 1990s -> ??

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Production OrientationProduction Orientation

Focus on the means of Focus on the means of production, and assumes production, and assumes customers will want the customers will want the product/service.product/service.

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Product Orientation (Contd.)Product Orientation (Contd.)

Focus on the technical Focus on the technical perfection of the perfection of the product/service seen product/service seen through the producer’s through the producer’s (firm) eyes. Assumes (firm) eyes. Assumes customers will perceive customers will perceive product/service in the product/service in the same way and thus buy.same way and thus buy.

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Selling OrientationSelling Orientation

Focus on persuading Focus on persuading ((usually aggressiveusually aggressive) customers ) customers to buy products which do to buy products which do not usually match their not usually match their requirements. This is requirements. This is unlikely to lead to repeat unlikely to lead to repeat buy/business. buy/business.

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Customer OrientationCustomer Orientation

Focus on discovering Focus on discovering customer needs (customer needs (basic basic

survey/question & answer typesurvey/question & answer type) ) and satisfying them. This and satisfying them. This is unlikely to make best is unlikely to make best uses of production and uses of production and other organizational other organizational resources.resources.

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Marketing OrientationMarketing Orientation

Focus on the identification of Focus on the identification of customers needs, organizational customers needs, organizational resources and objectives. resources and objectives. Achieve effective match through Achieve effective match through market segmentation, targeting, market segmentation, targeting, positioning and resource positioning and resource development.development.

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So how do you define Market(ing) So how do you define Market(ing) Orientation?Orientation?

Market orientation is the Market orientation is the organization-wide generation of organization-wide generation of market intelligence pertaining to market intelligence pertaining to current and future customer current and future customer needs, dissemination of the needs, dissemination of the intelligence across departments, intelligence across departments, and organization-wide and organization-wide responsiveness to it (Kohli and responsiveness to it (Kohli and Jaworski, 1990).Jaworski, 1990).

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Definition of Market Orientation Definition of Market Orientation contd.contd.

According to Narver and Slater According to Narver and Slater (1990), Market orientation (1990), Market orientation comprises three components:comprises three components:

Customer orientationCustomer orientation

Competitor orientation andCompetitor orientation and

Interfunctional co-ordination.Interfunctional co-ordination.

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Measuring Market Orientation Measuring Market Orientation constructconstruct

Top ManagementTop ManagementInterdepartmental DynamicsInterdepartmental DynamicsOrganizational SystemsOrganizational SystemsMarket (customer) OrientationMarket (customer) OrientationEmployeesEmployeesEnvironmentEnvironmentBusiness Performance.Business Performance.

Source: Kohli and Jaworski (1990)Source: Kohli and Jaworski (1990)

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Measuring Market Orientation Measuring Market Orientation construct contd.construct contd.

Customer OrientationCustomer OrientationCustomer commitment Customer commitment activitiesactivitiesCreation of customer valueCreation of customer valueUnderstanding customer Understanding customer needsneedsMeasuring customer Measuring customer satisfactionsatisfactionOffering after sales serviceOffering after sales service

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Measuring Market Orientation Measuring Market Orientation construct contd.construct contd.

Competitor OrientationCompetitor OrientationSalespeople share Salespeople share competitor informationcompetitor informationResponding rapidly to Responding rapidly to competitors’ actionscompetitors’ actionsTop managers discuss Top managers discuss competitors’ strategiescompetitors’ strategiesTargeting opportunities for Targeting opportunities for competitive advantagecompetitive advantage

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Measuring Market Orientation Measuring Market Orientation construct contd.construct contd.

Interfunctional CoordinationInterfunctional CoordinationEngaging in interfunctional Engaging in interfunctional customer callscustomer callsSharing information among Sharing information among functionsfunctionsIntegrating all functions in strategyIntegrating all functions in strategyContribution of all functions to Contribution of all functions to customer valuecustomer valueSharing resources with other Sharing resources with other functions.functions.Source: Narver and Slater (1990)Source: Narver and Slater (1990)

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Social Responsibility and Social Responsibility and Marketing EthicsMarketing Ethics

Social responsibility concerns a Social responsibility concerns a firm’s obligation to improve its firm’s obligation to improve its positive effects on society and positive effects on society and reduce its negative effects.reduce its negative effects.

Marketing ethics are the moral Marketing ethics are the moral standards that guide marketing standards that guide marketing decisions and actions.decisions and actions.

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Final comments on Market Final comments on Market OrientationOrientation

An organization’s success in a dynamic An organization’s success in a dynamic business environment is more dependent business environment is more dependent on adaptation to changing and evolving on adaptation to changing and evolving customer needs/wants.customer needs/wants.Higher degree of market orientation Higher degree of market orientation emanates from a changing and dynamic emanates from a changing and dynamic market environment.market environment.Lower degree of market orientation can Lower degree of market orientation can be evidenced in a market with a fixed set be evidenced in a market with a fixed set of customers whose preferences are of customers whose preferences are stable. Here, few changes are expected stable. Here, few changes are expected in the marketing mix deliberation.in the marketing mix deliberation.Kohli and Jaworski (1990) Kohli and Jaworski (1990)

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Marketing MyopiaMarketing Myopia

Myopia means short-sightedness. Myopia means short-sightedness. Theodore Levitt, in his classic article Theodore Levitt, in his classic article ”Marketing Myopia”, argues that ”Marketing Myopia”, argues that industries fail not because markets are industries fail not because markets are saturated but because of the failure and saturated but because of the failure and short-sightedness of the management…. short-sightedness of the management…. e.g. the railroad industry did not flourish e.g. the railroad industry did not flourish as it could have because the players in as it could have because the players in the industry defined their business the industry defined their business rather narrowly- as a railroad business rather narrowly- as a railroad business rather than transportation business. rather than transportation business.

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Selling Vs. MarketingSelling Vs. Marketing

MarketingMarketing and  and salessales are both activities  are both activities aimed at increasing revenue. They are so aimed at increasing revenue. They are so closely intertwined that people often don’t closely intertwined that people often don’t realize the difference between the two. realize the difference between the two. Indeed, in small organizations, the same Indeed, in small organizations, the same people typically perform both sales and people typically perform both sales and marketing tasks. Nevertheless, marketing is marketing tasks. Nevertheless, marketing is different from sales and as the organization different from sales and as the organization grows, the roles and responsibilities become grows, the roles and responsibilities become more specialized.more specialized.

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Selling Vs. Marketing(contd.)Selling Vs. Marketing(contd.)Marketing Sales

Approach: Determine future needs and has a strategy in place to meet those needs for the long term relationship.

Makes customer demand match the products the company currently offers.

Process: One to many Usually one to one

Focus: fulfill customer's wants and needs thru products and/or services the company can offer.

fulfill sales volume objectives

Horizon: Longer term Short term

Scope: Identifying customer needs (research), creating products to meet those needs, promotions to advertise said products.

Once a product has been created for a customer need, persuade the customer to purchase the product to fulfill her needs

Strategy: Pull Push

Concept: Marketing is a wider concept Sales is a narrower concept

Priority: Marketing shows how to reach to the Customers and build long lasting relationship

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Nature of Marketing:Nature of Marketing:Nature of Marketing evolves from its multidisciplinary coverage of activities which is as follow:1.     Dynamic Process: Marketing is an ongoing activity which does not stop at any step. After finding customer’s needs and wants it needs to develop such products or services which can satisfy these needs and after this there is need to advertising, promotion, distribution, etc the process goes on.2.    Customer Oriented: Marketing is customer oriented. Marketing is the process of finding needs and wants of customers and satisfying those needs profitably. 4747

3.All Encompassing: Marketing is all encompassing, it is not a single process it includes production planning, research, advertising, financial management, budgeting, selling, etc.4.Integrating: It integrates all the departments of an enterprise be it production, finance, IT, HR, etc.5.Creative: Marketing is creative in nature, it looks out for new ideas, views and activities and solves problems or encash opportunities in a creative way.

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Scope of Marketing:Scope of Marketing:Marketing has a very wide scope it covers all the activities from conception of ideas to realization of profits. Some of them as discussed as below:1. Product Planning: It includes the activities of product research, marketing research, market segmentation, product development, determination of the attributes, quantity and quality of the products.2. Branding: Branding of products is adopted by many reputed enterprises to make their products popular among their customer and for many other benefits. Marketing manager has to take decision regarding the branding policy, procedures and implementation programs. 4949

3. Packaging: Packaging is to provide a container or wrapper to the product for safety, attraction and ease of use and transportation of the product.4.Channels of Distribution: Decision regarding selection of most appropriate channel of distribution like wholesaling, distribution and retailing is taken by the marketing manager and sales manager.

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5.Sales Management: Selling is a part of marketing. Marketing is concerned about all the selling activities like customer identification, finding customer needs, persuading customer to buy products, customer service, etc.6. Advertising: Advertisement decisions like scope and time of advertisement, advertisement message, selection of media, etc comes into marketing.

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7.Finance: Marketing is also concerned about the finance, as for every marketing activity be it packaging, advertising, sales force budget is fixed and all the activities have to be completed with in the limit of that budget.8.After Sales services: Marketing covers after sales services given to customers, maintaining good relationships with customers, attending their queries and solving their problems.

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Definition of Marketing EvaluationDefinition of Marketing Evaluation

Techniques used after the marketing plan Techniques used after the marketing plan period to analyze success in achieving period to analyze success in achieving individual marketing objectives and to more individual marketing objectives and to more broadly assess the entire organization’s broadly assess the entire organization’s marketing effortsmarketing efforts

Control Process for the Control Process for the Marketing PlanMarketing Plan

a.a. Setting standards based on plansSetting standards based on plans

b.b. Measuring performance against standardsMeasuring performance against standards

c.c. Correcting deviations from standards and Correcting deviations from standards and plans plans

Marketing Evaluation TechniquesMarketing Evaluation Techniques

a.a. Sales analysisSales analysis

b.b. Market-share analysisMarket-share analysis

c.c. Marketing cost and profitability analysisMarketing cost and profitability analysis

d.d. Efficiency ratiosEfficiency ratios

e.e. Marketing-effectiveness rating reviewMarketing-effectiveness rating review

f.f. Marketing auditMarketing audit

Different environments and their Different environments and their influences on marketinginfluences on marketingMarketing EnvironmentMarketing EnvironmentAn organization operates basically in three types of environments macro, micro and internal environment. These environments also affect the marketing activities of an organization and they have direct and indirect effect on these activities. Some of the element of these environments are controllable and some are non controllable for the organizations. A brief description of these environments and their effect on the firms are as follow:

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The Macro EnvironmentThe Macro Environment This environment can be studied in the form of PEST Analysis.Political Environment:Political Environment: It includes how and to what degree a government intervenes in the economy. Specifically, political factors include areas such as tax policy, labour law, law, trade, tariffs, and political stability. Furthermore, governments have great influence on the health, education, and infrastructure of a nation.

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Economical Environment:Economical Environment: It includes economic growth, interest rates, exchange rates and the inflation rate. These factors have major impacts on how businesses operate and make decisions. For example, interest rates affect a firm's cost of capital and therefore to what extent a business grows and expands. Exchange rates affect the costs of exporting goods and the supply and price of imported goods in an economy

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Social Environment:Social Environment: It includes the cultural aspects, health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. Trends in social factors affect the demand for a company's products and how that company operates. Companies may change various marketing strategies to adapt to these social trends (such as offering innovative health insurance schemes).

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Technological Environment:Technological Environment:It includes technological aspects such as R&D activity, automation, technology incentives and the rate of technological change such as how to market products on internet effectively. Technological shifts can affect costs, quality, and lead to innovation.

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The Micro EnvironmentThe Micro Environment These are internal factors close to the company that have a direct impact on the organization’s strategy. These factors include:1.1.Customers:Customers: Marketing organizations survive on the basis of meeting the needs, wants and providing benefits to their customers.2. Suppliers:2. Suppliers: Increase in raw material prices will have a knock on affect on the marketing mix strategy of an organization. Prices may be forced up as a result.

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3. Shareholders:3. Shareholders: Satisfying shareholder needs may result in a change in tactics of marketing organization. Many internet companies who share prices rocketed in 1999 and early 2000 have seen the share price tumble as they face pressures from shareholders to turn in a profit.4. Media: 4. Media: Consumer programmes with a wider and more direct audience can also have a very powerful and positive impact. It enforces organizations to change their marketing strategies. 6262

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5. Competitors:5. Competitors: Marketing is all about differentiation. What benefit can the organization offer which is better than their competitors. Can they sustain this differentiation over a period of time from their competitors? Competitor analysis and monitoring is essential for an organization to maintain its position within the market. 

The Internal EnvironmentThe Internal Environment It refers to the combination of elements inside the organization on which it has full control. These are as follow:Employees:Employees: Employing the correct sales force and keeping it motivated is an essential part of the strategic planning process of a marketing organization. Training and development plays an essential role particular in service sector marketing in-order to gain a competitive edge. 

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Processes:Processes: Internal processes and procedures affect the product delivery, after sales services, customer satisfaction, etc. It is a very important aspect in services marketing.Culture of the organization:Culture of the organization: It refers to whether the culture is supportive to marketing objectives of the organization?

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