The Marketing Environment

Adeel A. SiddiquiOmair Abbas

Institute of Business Management

Roadmap: Previewing the Concept

• The environmental forces that affect the company’s ability to serve its customers.

• Changes in the demographic and economic environments affect marketing decisions.

• Identify the major trends in the firm’s natural and technological environments.

• The key changes in the political and cultural environments.

• How companies can react to the marketing environment

XEROX CORPORATION – THE EVOLUTION

Case Study

XEROX CORPORATION: HISTORYCase Study

Xerox Corporation: History

• XEROGRAPHIC IMAGE Patent in 1906 by Chester Carlson at Makeshift Laboratory Queens, N. Y.

• In 1949 XEROX COPIER debut.• In 1958 Haloid Company changed to Haloid Xerox• In 1960 Xerox 914 Copier becomes an Instant Hit.• Xerox Corporation, virtually synonymous with

photocopying.• By 1985 Xerox's worldwide plain-paper copier share

had dropped to 40 percent, from 85 percent in 1974.

Xerox Corporation: History• During the seven-month period from September 1990 to

March 1991, Xerox introduced five new types of computer printers.

• In May 1992 Xerox introduced Paper works, software making it possible to send documents to a fax machine directly from a PC.

• In 1994 Xerox began calling itself The Document Company.• In 1996 DocuColor 40 was Launched, which captured 50%

of the market.• In May 1998 Xerox bolstered its Document Services Group.

XEROX CORPORATION: BUSINESS DECLINATION 2000

Case Study

Xerox Corporation: Business Declination 2000

• By 2001 the Stock Prices of the company decreased from $70 in 1999 below $5 incurring $38 billion loses in the Market Place.

XEROX CORPORATION: MAJOR MARKETING ENVIRONMENT FORCES

Case Study

Xerox Corporation: Major Marketing Environment forces

• Microenvironment• Macro environment

XEROX CORPORATION: MICROENVIRONMENTS

Case Study

Xerox Corporation: Microenvironment

• The Company• Suppliers• Marketing Intermediaries• Competitors• Publics• Customers

Xerox Corporation: Microenvironment ‘The Company’

• Revenue decrease resulting massive downsizing.

• Moral declinations.• Salespeople, were trained for the Copier

Troubleshooting and Commissioning only.• Salespeople were not handy on new products,

hence they were asked to resign.• Very Weak CRM

Xerox Corporation: Microenvironment ‘Suppliers’

• Xerox’ entire internal & external Supply Chain was flawless.

Xerox Corporation: Microenvironment ‘Marketing Intermediaries’

• Xerox marketed its products via CompUSA, Office Depot, OfficeMax, and Staples.

• Xerox provided them with attractive profit margins

Xerox Corporation: Microenvironment ‘Competitors’

• IBM, Apple, Microsoft, etc were providing more sophisticated document management solutions.

• Sharp, Cannon, HP, Ricoh, etc were increasing their shares.

Xerox Corporation: Microenvironment ‘Publics’

• Negligible public influences found.

Xerox Corporation: Microenvironment ‘Customers’

• Customers rejecting Xerox technology and adapting more Sophisticated Document Management Systems.

XEROX CORPORATION: MACRO ENVIRONMENT

Case Study

Xerox Corporation: Macro Environment

• Demographic• Economic• Natural• Technological• Political & Social• Cultural

Xerox Corporation: Macro Environment ‘Demographic’

• Better education and skill based trainings, recoiled by increasing the need of innovative and sophisticated solution.

• Expending Business of Customers required more reliable and fast document management solutions.

Xerox Corporation: Macro Environment ‘Economic’

• Negligible Macroeconomics influences found.

Xerox Corporation:Macro Environment ‘Natural’

Xerox Corporation: Macro Environment ‘Technological’

• Most dramatic force shaping our destiny. • Changes Rapidly.• Turning markets and opportunities for more

sophisticated solution.

Xerox Corporation: Macro Environment ‘Political & Social’

• None

Xerox Corporation: Macro Environment ‘Cultural’

• Post & Fax were replaced with e-mail and document sharing.

• Business Process were getting faster

XEROX CORPORATION: RESPONDING MARKETING ENVIRONMENT

Case Study

Xerox Corporation: Responding Marketing Environment

Branding Image• Company’s Perspective

– Retired ‘the Document Company’– New Image ‘The World’s Document Management Technology &

Services Enterprise’• New Slogan ‘Ready for Real Business’• Logo Changed so carefully that Xerox could easily aspire the

confidence of the customer over its Technology

Logo Rational•‘Xerox’ in small case with rounded corner demonstrate more friendly customer relationship with humility•Sphere with two intersecting ribbon, demonstrating binding the customers all around the world. “ this part is animated in ads & promotional media”