MARKETING MANAGEMENT

(MBA4051)

CHAPTER -ONE:
A N OV E RV I E W O F
MARKETING AND MARKETING
MANAGEMENT
BY: K.E (Ph.D)

March, 2020 G.C

04/06/2025
1.1. Marketing and its core concepts

What is marketing?
 Marketing is a social and managerial process by which an

individual or group obtain what they need and want through

creating, offering and exchanging of product of values with others
(Philip Kotler)
 Marketing is the total business activity designed to plan, price,

promote and distribute want satisfying products to target market

to achieve organizational goal (William J.Stanton)
 Marketing management is the process of planning and executing,

the conception, pricing, promoting and distributing of ideas, goods

and services to create an exchange that satisfy individual or
04/06/2025
group objectives (American marketing Association)
Cont’d….

The above definitions of marketing resets on

the following core concepts:

needs, wants and demands; products (Goods,

Services and Idea), value, cost and

satisfaction: exchange and transaction;
Relationship and Networks; market; and
marketers and prospects.
04/06/2025
The Marketing Process
4
Below is a five-step model of the marketing process:

1. Understand the marketplace and customer needs and

wants.

2. Design a customer-driven marketing strategy.

3. Construct a marketing program that delivers superior

value.

4. Build profitable relationships and create customer

delight.

5. Capture value from customers to create profits and

04/06/2025
customer quality.
Core Concepts Of Marketing

Needs, Wants, and Demands

 Human needs are states of felt deprivation.

 Needs are the basic human requirements such as for air, food,

water ,clothing, and shelter.

 Humans also have strong needs for recreation, education, and

entertainment. These needs become wants when they are directed to

specific objects that might satisfy the need.
 For example: A U.S. consumer needs food but may want a Philly

cheesesteak and an iced tea. A person in Afghanistan needs food but

may want rice, lamb, and carrots.
 Wants are shaped by our society.
04/06/2025
 According to Abraham Maslow human needs form hierarchy.
Cont’d….
Demands are wants for specific products backed by

an ability to pay. Many people want a Mercedes;

only a few are able to buy one.
Companies must measure not only how many people

want their product, but also how many are willing

and able to buy it.
These distinctions shed light on the frequent criticism

that “marketers create needs” or “marketers get

people to buy things they don’t want.”
04/06/2025
Cont’d….

Marketers do not create needs: Needs pre-

exist marketers.
Marketers, along with other societal factors,

influence wants. They might promote the idea

that a Mercedes would satisfy a person’s
need for social status. They do not, however,
create the need for social status.
04/06/2025
Cont’d….
 Some customers have needs of which they are not fully conscious or that

they cannot articulate.

 We can distinguish five types of needs:

1. Stated needs (The customer wants an inexpensive car.)

2. Real needs (The customer wants a car whose operating cost, not initial
price is low.)
3. Unstated needs (The customer expects good service from the dealer.)
4. Delight needs (The customer would like the dealer to include an on-board
GPS navigation system.)
5. Secret needs (The customer wants friends to see him or her as a savvy
consumer.)
Implications: to gain an edge, companies must help customers learn what
04/06/2025
they want.
Market Offerings

 Customer needs and wants are fulfilled through a marketing

offering.

 Marketing offering is a combination of products, services,

information or experiences offered to a market to satisfy a

need or want.

 Marketing offerings are not limited to physical products.

 A product is any offering that can satisfy a need or want,

such as one of the 10 basic offerings of goods, services,

experiences, events, persons, places, properties,

04/06/2025
Cont’d….
 GOODS: Physical goods constitute the bulk of most countries 'production
and marketing efforts. Eg. car, refrigerator, televisions…
 SERVICES: Services include the work of airlines, hotels, car rental firms,
barber…
 EVENTS Marketers promote time-based events, such as major trade shows,
artistic performances, and company anniversaries. Global sporting events
such as the Olympics and the World Cup…
 EXPERIENCES: By orchestrating several services and goods, a firm can
create, stage, and market experiences. Walt Disney World’s Magic Kingdom
allows customers to visit a fairy kingdom. Climb up mount Everest….
 PERSONS: Artists, musicians, CEOs, physicians, high-profile lawyers and
financiers, and other professionals all get help from celebrity marketers.

04/06/2025
Cont’d….
 Some people have done a masterful job of marketing

themselves—David Beckham, Oprah Winfrey, and the

Rolling Stones. Management consultant Tom Peters, a
master at self-branding, has advised each person to become
a “brand.”
 PLACES Cities, states, regions, and whole nations compete

to attract tourists, residents, factories, and company

headquarter. Place marketers include economic
development specialists, real estate agents, commercial
banks, local business associations, and advertising and
04/06/2025
public relations agencies.
Cont’d….
 PROPERTIES: Properties are intangible rights of
ownership to either real property (real estate) or
financial property (stocks and bonds). They are bought
and sold, and these exchanges require marketing.
 ORGANIZATIONS: Organizations work to build a
strong, favorable, and unique image in the minds of
their target publics Universities, museums, performing
arts organizations, corporations, and nonprofits all use
marketing to boost their public images and compete for
audiences and funds. 04/06/2025
Cont’d….
 INFORMATION: The production, packaging, and
distribution of information are major industries.
Information is essentially what books, schools, and
universities produce, market, and distribute at a price
to parents, students, and communities.
 The former CEO of Siemens Medical Solutions USA,

Tom McCausland, says,“[our product] is not necessarily

an X-ray or an MRI, but information. Our business is
really health care information technology, and our end
product is really an electronic patient record:
04/06/2025
Cont’d….
 IDEAS: Every market offering includes a basic idea.

Charles Revson of Revlon once observed: “In the

factory we make cosmetics; in the drugstore we sell
hope. ”Products and services are platforms for
delivering some idea or benefit.

 Social marketers are busy promoting such ideas as

“Friends Don’t Let Friends Drive Drunk” and “A Mind

Is a Terrible Thing to Waste.”
04/06/2025
Cont’d….
A brand is an offering from a known source. A

brand name such as McDonald’s carries many

associations in people’s minds that make up its
image:
hamburgers,cleanliness,convenience,courteous
service,and golden arches.
All companies strive to build a brand image with

as many strong, favorable, and unique brand

associations as possible. 04/06/2025
Value, Cost, and Satisfaction

 How do consumers choose among the many products that might satisfy their needs

and wants?
 The guiding concepts here are value and satisfaction.

 Value is the consumer’s estimate of the products overall capacity to satisfy his or her

needs.
 According to DeRose, value is “the satisfaction of customer requirement at the

lowest cost of acquisition, ownership and use.

 Cost is the amount of money that are going to be expended or already incurred to

acquire a product.
 Satisfaction occurs when the product performance exceeded the customer
04/06/2025
expectation.
Cont’d….
 Exchange and Transactions : People can obtain products in one of
four ways.
1. The first way is self-production. People can be relieve hunger
through hunting, fishing or fruit gathering. In this case, there no
market and no marketing.
2. The second way is coercion (applying forces). Hungry people can
wrest or steal food from others.
3. The third way is begging. Hungry people can approach others and
beg for food.
4. Marketing emerges when people decided to satisfy needs and
wants through exchange.
 Exchange is the act of obtaining a desired product from someone by
offering something in return
04/06/2025
Cont’d….
For exchange potential to exist, the following
conditions must be satisfied: -
1. There are at least two parties
2. Each party has something that might be of
value to the other party
3. Each party is capable of communication and
delivery
4. Each party is free to accept or reject the
exchange offer
5. Each party believes it is appropriate or
desirable to deal with the other party.
04/06/2025
Cont’d….

Transaction: - is the trade of values between two parties.

Eg. If Mr. A gives ‘X’ to Mr. B and receives Y in return, that

is a transaction.
Eg. If Mr. A gave $400 to Mr. B and obtained a TV set. This

is a classic monetary transaction.

Transaction however do not require money as one of the

traded value. A barter transaction consists of the trading of

goods or services for other goods or services is also possible.
04/06/2025
Cont’d….
20

A transaction involves several dimensions,

1. At least two things of values,

2. Agreed upon conditions,

3. A time of agreement, and

4. A place of agreement.

 Usually a legal system arises to support and enforce

compliance on the part of contract, people would

approach transactions with save distrust, and
everyone will lose.
04/06/2025
Relationship and Networks

 Transaction marketing is a part of a larger idea called relationship

marketing.
 Relationship marketing is the practice of building long term

satisfying relations with key parties-customers, suppliers, distributors-

in order to retain their long term preferences and business. Smart
marketers try to build up long term, trusting, win-win relationship
with valued customers, distributors, dealers and suppliers.
 They accomplish this by promising and delivering high quality,

good service, and fair prices to the other parties over time.
04/06/2025
Cont’d….
The ultimate outcome of relationship marketing is the building

of a unique company asset called a marketing network.

A marketing network consists of the company and all of its

supporting stockholders: customers, employees, supplies,

distributors, retailers, and agencies, university scientists, and
others with whom it has built mutually profitable business
relationships.
The operating principle is simple: Build a good network of
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relationship with key stakeholders, and profit will follow.
Supply Chain and Competition

 Supply Chain: The supply chain is a longer channel stretching

from raw materials to components to finished products

carried to final buyers. The supply chain for coffee may
start with Ethiopian farmers who plant, tend, and pick the
coffee beans, selling their harvest to wholesalers……..
Reached to final users every where in globe.
 Competition: competition includes all the actual and
potential rival offerings and substitutes a buyer might
consider. From sourcing inputs to distributing and selling
final pdt.
04/06/2025
Marketing Channels

 Marketing Channels To reach a target market, the marketer

uses three kinds of marketing channels.

 Communication channels deliver messages to and receive

messages from target buyers. They include newspapers,

magazines, radio, television, mail, telephone, billboards,
posters, fliers, CDs, audiotapes, and the Internet. Beyond
these, communications are conveyed by facial expressions
and clothing, the look of retail stores, and many other media.
Marketers are increasingly adding dialogue channels (e-mail
and toll-free numbers) to counterbalance the more normal
monologue channels (such as ads). 04/06/2025
Marketing Channels
 The marketer uses distribution channels to display or deliver the

physical product or service(s) to the buyer or user.

 There are physical distribution channels and service distribution

channels, which include warehouses, transportation vehicles, and

various trade channels such as distributors, wholesalers, and
retailers.
 The marketer also uses selling channels to effect transactions with

potential buyers. Selling channels include not only the distributors

and retailers but also the banks and insurance companies that
facilitate transactions.
 Marketers clearly face a design problem in choosing the best mix of

communication, distribution, and selling channels for their offerings.

04/06/2025
Marketing Environment

The broad environment consists of six components:

demographic environment, economic environment,

social-cultural environment, natural environment,
technological environment, and political-legal
environment. Marketers must pay close attention
to the trends and developments in these and adjust
their marketing strategies as needed. New
opportunities are constantly emerging that await
the right marketing savvy and ingenuity 04/06/2025
What is Market?

The concept of exchange leads to the concept of a market.

A market consists of all the potential customers sharing

a particular need or want who might be willing and able

to engage in exchange to satisfy their need or want.
Thus the size of the market depends on the number of

people who exhibit the need or want, have resources that

interest others, and are willing and able to offer these
resources in exchange for what they want. 04/06/2025
Cont’d…..

Traditionally, a market was the place where buyers and

sellers gathered to exchange their goods.

The seller and the buyer are connected by four Flows. The

seller sends goods and services and communications (ads,

direct mail and so forth) to the market; in return they
receive money and information (attitudes, sales data, and
so forth).
04/06/2025
Cont’d…..
 In the diagram below the inner loop shows an
exchange of money for goods and services (Simple
Marketing System); the outer loop shows an
exchange of information.

Communication

Industry (a Market (a
collection of Goods/Service collection of
sellers) Money buyers)

Information

04/06/2025
Cont’d…..

 Economists describe a market as a collection of buyers

and sellers who transact over a particular product or

product class (such as the housing market or the grain
market).
 Marketers use the term market to cover various
groupings of customers. They view sellers as constituting
the industry and buyers as constituting the market.
 Key Customer Markets Consider the following key

customer markets: consumer, business, global, and non-

profit & Governmental markets. 04/06/2025
Cont’d…..

Resource
markets
e/money
Resourc

resource
Money
T M

s
, ,
G S
Services,
Government taxes
Manufacturer money Consumer
markets markets markets
Taxes, goods Services
S
T
,
,
M
G
Money / goods & Intermediary Money/ G&S
service markets
 T= taxes
 M= money
04/06/2025
 S= services G= Goods
Marketplaces, Market-spaces and Meta-markets

 The marketplace is physical, such as a store you shop in;

 The marketspace is digital, as when you shop on the Internet.

 Northwestern University’s Mohan Sawhney has proposed the

concept of a metamarket to describe a cluster of complementary

products and services closely related in the minds of consumers,
but spread across a diverse set of industries.
 E.g. The automobile metamarket consists of automobile
manufacturers, new and used car dealers, financing companies,
insurance companies, mechanics, spare parts dealers, service
shops, auto magazines, classified auto ads in newspapers, and auto
sites on the Internet.
04/06/2025
1.2. Importance Of Marketing

The money pays for designing the products to meet

our needs, making products readily available when

and where we want them, and informing us about
producers. These activities add want satisfying ability
or what is called utility, to products.
A customer purchases a product because it provides

satisfaction. That something that makes a product

capable of satisfying want is its utility. And it is
through marketing that much of a products utility is
04/06/2025
created.
Cont’d…..
The kinds of utility that marketing provides in the
process are as follows: -
1. Form Utility: -
Form utility is associated primarily with
production- the physical or chemical changes that
makes a product more valuable.
Form utility are like color, quantities produced,
or some other aspect of a product.
2. Place Utility
Place utility exists when a product is readily
accessible to potential customers. So physically
moving the products to a store near the
04/06/2025
customers add to its value.
Cont’d…..

3. Time Utility
Time utility means having a product available
when you want it.
4. Information Utility
Information utility is created by informing
prospective buyers that a product exists.
Unless you know a product exists and where
you can get it, the product has no value.
Advertising that describes a sales person
answering a customer questions about the
durability of a product creates information
utility. 04/06/2025
Cont’d…..

Image utility is a special type of information

utility. It is the emotional or psychological
values that a person attaches to a product or
brand because of its reputation or social
standing.
5. Possession Utility
Possession utility is created when a customer
buys the product-that is, ownership is
transferred to the buyer.

04/06/2025
1.3 Market Orientation/ philosophies

Given these new marketing realities, what

philosophy should guide a company’s

marketing efforts? Increasingly, marketers
operate consistent with the holistic
marketing concept. Let’s first review the
evolution of earlier marketing ideas.

04/06/2025
A. The Production Concept

 The production concept is one of the oldest concepts in business.

 It holds that consumers prefer products that are widely available

and inexpensive.
 Managers of production-oriented businesses concentrate on
achieving high production efficiency, low costs, and mass
distribution. This orientation makes sense in developing countries
such as China, where the largest PC manufacturer, Legend
(principal owner of Lenovo Group),and domestic appliances giant
Haier take advantage of the country’s huge and inexpensive
labour pool to dominate the market. Marketers also use the
production concept when they want to expand the market
04/06/2025
B. The Product Concept

 The product concept proposes that consumers favor products

offering the most quality, performance, or innovative features.

 However, managers are sometimes caught in a love affair with

their products.
 They might commit the “better-mousetrap” fallacy, believing a

better product will by itself lead people to beat a path to their

door. A new or improved product will not necessarily be successful
unless it’s priced, distributed, advertised, and sold properly.
 Product-oriented companies often design their products with little

or no customer input. They trust that their engineers will know

how to design or improve the product.
04/06/2025
C. The Selling Concept

The selling concept holds that consumers and

businesses, if left alone, won’t buy enough of the

organization’s products.
It is practiced most aggressively with unsought

goods—goods buyers don’t normally think of

buying such as insurance and encyclopaedia, when
firms with overcapacity aim to sell what they
make, rather than make what the market wants.
Marketing based on hard selling is risky. 04/06/2025
Cont’d…..

It assumes customers coaxed into buying a product

not only won’t return or bad-mouth it or complain to

consumer organizations but might even buy it again.
It also assumes that the company has made
available a whole battery of effective selling and
promotion tools to stimulate more buying.
Most firms practice the selling concept when they

have over capacity. Their aim is to sell what they

make rather than make what the market wants.
04/06/2025
D. The Marketing Concept

 The marketing concept emerged in the mid-1950s as a

customer-centered, sense-and-respond philosophy.
 The job is to find not the right customers for your products,

but the right products for your customers. Dell doesn’t prepare
a perfect computer for its target market. Rather, it provides
product platforms on which each person customizes the
features he or she desires in the computer.
 The marketing concept holds that the key to achieving
organizational goals is being more effective than
competitors in creating, delivering, and communicating
superior customer value to your target markets. 04/06/2025
Cont’d…..

The marketing concept has been expressed in many colorful

ways:
“ Meeting needs profitably
“Find wants and fill them
“Love the customers, not the product etc.
The marketing concept rests on four pillars: target market,
customer needs, integrated marketing, and profitability. The
marketing concept takes an outside –in perspective.

04/06/2025
Comparison b/n M & S Concept
Starting Focus Means End

Selling Factory Existing pdt Selling and Profit through

promoting sales volume

Marketin Market Customer Integrated Profits

g needs marketing through
satisfying
customers
need

04/06/2025
E. The Societal Marketing Concept

The societal marketing concept holds that the

organization should determine the needs,

wants and interests of target markets. It
should then deliver the desired satisfactions
more effectively and efficiently than
competitors in a way that maintains or
improves the consumers and the society’s
well-being. 04/06/2025
Cont’d…..

Society (Human welfare)

Societal Company
marketing
Consumers

Marketing
(Wants
satisfaction) (profits)

04/06/2025
F. The Holistic Marketing Concept

 Without question, the trends and forces that have

defined the first decade of the 21st century are leading
business firms to a new set of beliefs and practices.
 The holistic marketing concept is based on the
development, design, and implementation of marketing
programs, processes, and activities that recognize their
breadth and interdependencies.
 Holistic marketing acknowledges that everything
matters in marketing—and that a broad, integrated
perspective is often necessary. 04/06/2025
Cont’d…..

Holistic marketing thus recognizes and reconciles

the scope and complexities of marketing activities.

The following figure provides a schematic
overview of four broad components characterizing
holistic marketing: relationship marketing,
integrated marketing, internal marketing, and
performance marketing. Successful companies
keep their marketing changing with the changes in
their marketplace—and market space. 04/06/2025
Fig. Holistic Marketing Dimensions

Internal Integrated
marketing marketing
• Marketing • Product &
department services
• Senior • Communicatio
management ns
• Other • Channels
Holistic
Performance Marketin
marketing g
• Sales revenue
• Brand & Relationship
customer marketing
Equity • Customers
• Ethics • Channel
• Environment • Partners
• Legal
04/06/2025
community
Thank you for
your Attention.
04/06/2025
 MARKETING MANAGEMENT
(MBA4051)

CHAPTER -TWO:
THE MARKETING ENVIRONMENT

BY: K.E

March, 2020
G.C 04/06/2025
Cont’d…..

Marketing environment consists of the actors

and forces outside marketing that affect

marketing management’s ability to build and
maintain successful relationships with target
customers. The marketing environment offers
both opportunities and threats. The environment
continues to change rapidly. The marketing
environment is made up of Micro-environment
and Macro-environment. 04/06/2025
Cont’d…..

The Micro environment consists of the actors close

to the company that affect its ability to serve its

customers. These actors are: the company,
suppliers, marketing intermediaries, customer
markets, competitors and publics.
The Macro environment consists of the larger
societal forces that affect the microenvironment.
These forces are: demographic, economic, natural,
technological, political and cultural forces. 04/06/2025
The Company

In designing marketing plans, marketing management

takes other company groups into account. These

groups include the top management, finance, research
and development, purchasing, operations and
accounting departments, All these internal groups
form the internal environment. Under the marketing
concept, all of these functions must “think
consumer”.
They should work in harmony to provide superior
04/06/2025
customer value and satisfaction.
Suppliers:

Suppliers provide the resources needed by the

company to produce its goods and services.

Marketing managers must watch supply availability

for example, supply shortages and delays, labor

strikes and other events that can cost sales in the
short term and damage customer satisfaction in the
long term.
Raising supply costs may force price increases that

can harm the company’s sales volume. 04/06/2025

Marketing Intermediaries:

Marketing intermediaries are firms that help

the company to promote, sell and distribute

its goods to final buyers.
They include resellers, distribution firms,
marketing services agencies and financial
intermediaries.

04/06/2025
Customers:

Customer markets are of five types:

A. Consumer Markets: They consist of individuals and households that
buy goods for personal consumption.
B. Business Markets: They buy goods for further processing or for use
in their production process.
C. Reseller Markets: They buy goods and services to resell at a profit.
D. Government Markets: They are made up of government agencies
that buy goods to produce public services or transfer them to those
who need
E. International Markets: These consist of those buyers in other
countries including consumers, producers, resellers and
governments. 04/06/2025
Competitors:

According to the marketing concept, a

company must provide customer value and
satisfaction more than its competitor do.
Therefore marketers must gain advantage by

positioning their offerings strongly against

the competitors’ offerings.

04/06/2025
Publics:

A public is any group that has an actual or

potential interest or impact on an

organization’s ability to achieve its
objectives. In short, a group of people
interested in an organization is public for that
organization. There are seven types of
public:

04/06/2025
Types of Public:

1. Financial Public: They influence the company’s

ability to obtain funds. Include banks, stockholders etc
2. Media Public: They carry news, features and
editorial opinions. Includes newspapers, magazines,
TV and Radio.
3. Government Public: They are government people.
Management must take government developments
into account and consult them regarding product
safety, truth in advertisements etc.
04/06/2025
Cont’d…..

4. Citizen-action Public: They are consumer and citizen

groups who may question the marketing management’s
decisions such as consumer groups, environmental groups,
minority groups etc.
5. Local Public: They include neighbourhood residents and
community organizations.
6. General Public: A company needs to concerned about the
general public’s attitude toward its products and activities.
7. Internal Public: Includes workers, managers, volunteers
and the board of directors
04/06/2025
The Company’s Macro environment

A company’s Macro environment includes six

major players:
Demographic Environment: Demography is
the study of human populations in terms of size,
density, location, age, gender, race, occupation
etc. The demographic environment is of major
interest to marketers because it involves people
and as a matter of fact, people make up markets.
04/06/2025
Cont’d…..

For example, the explosive world population

growth has major implications on business. A

growing population means growing human
needs to satisfy.
Thus, marketers keep close track of
demographic trends.

04/06/2025
Cont’d…..

Economic Environment: The economic

environment consists of factors that affect
consumer purchasing power and spending
patterns.
Countries with Subsistence economies consume

most of their own agricultural and industrial

output offering few market opportunities.
Countries with Industrial economies constitute
04/06/2025
rich markets for different kinds of goods.
Cont’d…..

 Following changes in income were observed in

these years:
 1980s: High purchasing power. It was
fashionable to say that you were ‘born to shop’
 1990s: Decade of ‘squeezed consumer’.
Increase financial burdens. Lower purchasing
power.
 2000s: Consumers spend carefully.
04/06/2025
Cont’d…..

Income distribution in USA can be classified as follows:

 Upper Class: Those consumers whose spending patterns are

not affected by current economic events. They are a major

market for luxury goods.
 Middle Class: They are comfortable and somewhat careful
in spending but can afford the good life.
 Working Class: They must stick to the basics of food,

clothing and shelter.

 Under Class: They are then ones on welfare and retirees.

They must count their pennies when purchasing even the

04/06/2025
basic things.
Cont’d…..

 Most of the income is used up in food, housing and

transportation. But different people with different

incomes spend differently.
 It was found that as the income rises, percentage spent

on food declines, on housing remains same and

percentage of income saved increases.
 Engel’s Laws : Difference notes over a century ago by

Ernst Engel in how people shift their spending across

food, housing, health care and other goods and services
categories as family income rises. 04/06/2025
Cont’d…..

 Natural Environment: Natural environment are the natural

resources that are needed as inputs by the marketers or that which

are affected by marketing activities. For example, air and water
pollution. Marketers should be aware of the trends in the natural
environment. Especially the following trends:
a) Shortages of raw materials.
b) Increased pollution.
c) Increased government intervention.
 Concern for the natural environment has spawned the so-called

green movement. Today, enlightened companies go beyond what

government regulations dictate and are developing environmentally
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sustainable strategies.
Cont’d…..

Technological Environment: The technological

environment is perhaps the most dramatic force

now shaping our destiny.
It changes rapidly. New technologies create new

markets and thus new opportunities.

Therefore, marketer should watch technological

environment very closely. For those that do not

keep up with the technological change will soon
find their products out of date. 04/06/2025
Cont’d…..

 Political Environment: The political environment consists of

laws, government agencies and pressure groups that influence

or limit various organizations and individuals in a given
society. For example, the Legislation Regulating Business.
Well-conceived regulations can encourage competition and
ensure fair markets.
 Business legislation has been enacted for a number of
reasons:
1) To protect companies from each other.
2) To protect consumers from unfair business practices.
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3) To protect the interests of society.
Cont’d…..

 Cultural Environment: The cultural environment is made up

of institutions and other forces that affect a society’s basic

values, perceptions, preferences and behaviours. Some cultural
characteristics that can affect marketing decision making are:
 Core Values: Core beliefs and values are passed on from parents

to children and then reinforced by school, church etc.

 Secondary Beliefs: These beliefs and values are more open to

change. For example, believing in marriage is core belief but

believing that people should get married early in life is a
secondary belief.

04/06/2025
Thank you for
your Attention.
04/06/2025