Unit II: Marketing Environment and Analysis

11. What do you mean by the term marketing environment? Discuss the relevance of
internal factors of marketing environment.
Marketing environment refers to the external and internal forces that influence a company's
marketing decisions and strategies. It encompasses all the factors that can affect a company's
ability to create, deliver, and exchange offerings.
Internal factors are those that are within the control of the organization. These include:
● Company culture: The values, beliefs, and norms that shape the company's behavior
and decision-making.
● Human resources: The company's employees, their skills, knowledge, and motivation.
● Financial resources: The company's financial strength and ability to invest in marketing
activities.
● Production capacity: The company's ability to produce goods or services efficiently and
in sufficient quantities.
● Research and development: The company's ability to innovate and develop new
products or services.
Internal factors are crucial to a company's success because they determine its capabilities and
resources. For example, a company with a strong culture of innovation may be better positioned
to develop new products and services, while a company with a highly skilled workforce may be
able to provide superior customer service.
12. Differentiate between internal and external environment of marketing. Describe in
brief the various macro components of marketing environment.
Internal environment consists of factors that are within the control of the organization, as
discussed in the previous answer.
External environment consists of factors that are outside the control of the organization. These
can be further classified into two categories:
● Microenvironment: This includes factors that directly affect the company's operations,
such as customers, suppliers, competitors, intermediaries, and the public.
● Macroenvironment: This includes factors that affect the entire industry or economy, such
as political, economic, socio-cultural, technological, environmental, and legal factors
(PESTEL).
Macro components of marketing environment:
● Political factors: Government policies, regulations, and political stability can significantly
impact a company's marketing activities.
● Economic factors: Economic conditions, such as interest rates, inflation, and GDP
growth, can affect consumer spending and business investment.
● Socio-cultural factors: Cultural norms, values, beliefs, and demographics can influence
consumer preferences and behavior.
● Technological factors: Technological advancements can create new opportunities and
challenges for businesses.
● Environmental factors: Environmental concerns and regulations can impact product
design, packaging, and marketing strategies.
● Legal factors: Laws and regulations related to consumer protection, competition, and
environmental issues can affect a company's marketing activities.
13. Define marketing research? Also state the salient features of marketing research.
Marketing research is the systematic gathering, recording, and analyzing of data about a
specific market or market segment. It involves collecting information from customers,
competitors, and other sources to help businesses make informed decisions about their
marketing strategies.
Salient features of marketing research:
● Systematic: Marketing research follows a structured process involving planning, data
collection, analysis, and reporting.
● Objective: It aims to provide unbiased and objective information.
● Data-driven: It relies on data to make informed decisions.
● Decision-oriented: The research is conducted to address specific marketing questions or
problems.
● Continuous: Marketing research is an ongoing process to track changes in the market
and consumer behavior.
14. What do you mean by marketing research? Discuss the main objectives of marketing
research.
Marketing research, as defined in the previous answer, is the systematic gathering, recording,
and analyzing of data about a specific market or market segment.
Main objectives of marketing research:
● Identify market opportunities: Research helps businesses identify potential new
markets or segments.
● Understand customer needs and preferences: Research helps businesses understand
what customers want and how they behave.
● Evaluate marketing performance: Research helps businesses assess the effectiveness
of their marketing strategies.
● Monitor the competitive environment: Research helps businesses track the activities of
their competitors.
● Reduce risk: Research helps businesses make more informed decisions and reduce the
risk of marketing failures.
15. What do you mean by the term marketing research? Clearly mention the important
functions of marketing research?
Marketing research, as defined in the previous answers, is the systematic gathering, recording,
and analyzing of data about a specific market or market segment.
Important functions of marketing research:
● Problem identification: Identifying marketing problems or opportunities.
● Information gathering: Collecting data from various sources.
● Data analysis: Analyzing and interpreting the collected data.
● Information dissemination: Communicating research findings to relevant stakeholders.
● Decision-making: Using research insights to make informed marketing decisions.
16. Define marketing research and clearly differentiate between marketing research and
marketing information system.
Marketing research is a specific process of collecting, analyzing, and interpreting data to
address specific marketing questions or problems.
Marketing information system (MIS) is a broader concept that refers to the entire system of
collecting, storing, analyzing, and distributing information relevant to marketing decision-making.
The key difference is that marketing research is a subset of MIS. While marketing research
focuses on specific data collection and analysis projects, MIS encompasses the overall
infrastructure and processes for managing marketing information.
17. What are the major components of marketing information system? Discuss their
relative advantages in brief.
Major components of marketing information system:
● Internal data: Information collected within the organization, such as sales data, customer
 databases, and financial reports.
● Marketing intelligence: Information collected from external sources, such as
newspapers, magazines, industry reports, and competitor analysis.
● Marketing research: The specific process of collecting, analyzing, and interpreting data
to address specific marketing questions or problems.
● Marketing decision support systems (MDSS): Computer-based systems that help
managers analyze data and make informed decisions.
Relative advantages of each component:
● Internal data: Provides a wealth of information about the company's own operations and
performance.
● Marketing intelligence: Offers insights into the broader market environment and
competitive landscape.
● Marketing research: Provides specific and targeted information to address specific
marketing questions.
● MDSS: Enables managers to analyze large amounts of data quickly and efficiently.
18. What do you mean by marketing information system (MIS)? Discuss in brief its
relevance in marketing. Support your answer with real life marketing examples.
Marketing information system (MIS) is a system for collecting, storing, analyzing, and
distributing information relevant to marketing decision-making.
Relevance of MIS in marketing:
● Improved decision-making: MIS provides managers with the information they need to
make informed decisions about marketing strategies and tactics.
● Enhanced customer understanding: MIS helps businesses understand their customers'
needs, preferences, and behaviors.
● Effective resource allocation: MIS helps businesses allocate resources efficiently to
maximize marketing ROI.
● Competitive advantage: MIS can give businesses a competitive advantage by providing
them with valuable insights into the market and their competitors.
Example: A retail company might use MIS to track customer purchase data, analyze sales
trends, and identify the most popular products. This information can help the company optimize
inventory levels, target marketing campaigns, and improve customer satisfaction.
19. What do you mean by marketing information system? Discuss in brief the main
disadvantages of marketing information system.
Marketing information system (MIS), as defined in the previous answer, is a system for
collecting, storing, analyzing, and distributing information relevant to marketing decision-making.
Main disadvantages of MIS:
● Cost: Implementing and maintaining an MIS can be expensive.
● Complexity: MIS systems can be complex and difficult to use, especially for
non-technical users.
● Data quality: The quality of the data collected and analyzed can be a challenge.
● Timeliness: MIS systems may not always provide information in a timely manner.
● Privacy concerns: Collecting and storing customer data can raise privacy concerns.
20. Write short notes on:
A. Limitations of marketing research
● Cost: Conducting marketing research can be expensive.
● Time-consuming: Research can take time to complete.
● Complexity: Designing and conducting research can be complex.
● Data quality: The quality of data collected can be a challenge.
 ● Ethical considerations: Research can raise ethical concerns, such as privacy and
informed consent.
B. Micro marketing environment
The micro marketing environment consists of factors that directly affect a company's operations,
including:
● Customers: The people or organizations that purchase the company's products or
services.
● Suppliers: The businesses that provide the company with raw materials, components, or
other inputs.
● Competitors: Other businesses that offer similar products or services.
● Intermediaries: The channels through which the company distributes its products or
services, such as retailers and wholesalers.
● Public: Any group or individual that has an interest in the company or its products.