The Industrial Marketing

Environment
Chapter 3

Types & Analysis of Environment

A IR & W A T E R P O L L U T IO N
E C O L O G IC A L

S O L ID W A S T E D IS P O S A L
C O N S E R V IN G N A T U R A L R E S O U R C E S

P H Y S IC A L

E N V IR O N M E N T

W A T E R , P O W E R , T R A N S P O R T A T IO N
L O W -C O S T , S K IL L E D M A N P O W E R
C O M P A N Y L O C A T IO N , IM A G E / R E P U T A T IO N

IN T E R N A L
(S & W A N A L Y S IS )

R & D & P R O D U C T IO N F A C IL IT IE S
H R & F IN A N C IA L R E S O U R C E S
M A R K E T IN G E F F E C T IV E N E S S

EXTERNAL
( O & T A N A L Y S IS )

M IC R O
(A F F E C T S A
P A R T IC U L A R
F IR M )

C U S T O M E R S & C O M P E T IT O R S
S U P P L IE R S
E C O N O M IC

M ACRO
(A F F E C T S
A L L F IR M S )

T E C H N O L O G IC A L
G O V T ., P O L IT IC A L , L E G A L
C U L T U R A L & S O C IA L
P U B L IC - P R E S S , S H A R E
H O L D E R S , IN V E S T O R S &
P U B L IC IN T E R E S T G R O U P S

The Industrial Marketing Environment

Buyer- seller
interface

Publics
Macro-Environment

Government

Financial
Financial
Publics
Publics

Public Interest
Interest
Public
Groups
Groups

Communities of interested parties who are not direct participants in a

market as customers, channel members, suppliers, or competitors .

Publics
Independent
Independent
Press
Press

Internal
Internal Publics
Publics
4

The Macro-environment
Demographic
influences
Environment
Competitive
Environment

Economic
Environment

Technological
Environment

Sociocultural
Environment

Natural
Environment
5

Governments Influence
Primary Functions of Government Are to
1

Protect companies from each other

Protect companies from unfair business practices

Protect the larger interests of society against unrestrained business behavior

Ameliorate income inequality in society

Provide economic stabilization through control of unemployment and inflation

These Functions Involve

1

Regulating agencies

Laws/ politics

Program funding

Research funding

Import/ export regulation

Levying taxes

Providing social programs

Controlling interest rates

Forms of Competition in B2B Markets

Pure Competition
No single entity dominates the market or
has much of an influence on price.
Most common in commodity industries.
Little product differentiation price is a
major component of the marketing mix.

Forms of Competition in B2B Markets

Monopolistic Competition
Many buyers, many sellers.
Product is differentiable can vary in
quality, features, and style
A range of prices is possible.
Promotion and branding are important to
product differentiation.

Forms of Competition in B2B Markets

Oligoplistic Competition
Market consists of a few sellers that are
sensitive of each others strategy.
Barriers limit entry of new competitors.
Prices are aimed at maintaining market
stability.
Key is building relationships with large
volume customers.
9

Forms of Competition in B2B Markets

Pure Monopoly
Only one primary seller.
Competitors that do exist are small niche
players.

10

Trends and Changes in

Business Marketing

Hyper-competition
Formation of partner networks
Adoption of technology and the internet
Supply Chain Management
Time Compression

Copyright 2011 Pearson Education, Inc., publishing as Prentice Hall

11

Outsourcing
Outsourcing is the purchasing of part of the
companys continuing operations, such as
manufacturing, rather than producing the
same function internally.
Quantity Discounts
Complementary Products
Delivery Schedules

Increases the
the
Increases
complexityof
of
complexity
business-to-business
business-to-business
marketing
marketing

Outsourcing
12