The external environment is of two types: Be sure to explain exactly how a given factor might affect product sales. Also, the companies are required to invest in the welfare of general people by constructing public conveniences, parks, sponsoring education, etc. The external and internal information sources.
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The marketer needs to research about every aspect of the environment to create a foolproof plan. Strategies aimed at getting customers to switch brands are a major focus in attempts to beat brand competition. In matching products with external factors, apply each factor only once.
Written by Aashish Pahwa A marketer, a dreamer, a traveler and a philomath. The process began when you recognized a need to go to college. Demographic Environment The demographic environment is made up of the people who constitute the market. This includes the climatic conditions, environmental change, accessibility to water and raw materials, natural disasters, pollution etc.
General public— The business has some social responsibility towards the society in which it is operating. In-depth analysis of the marketing environment reduces and even removes the noise between the marketer and customers and helps the marketer to understand the consumer behaviour better. A trend break could be a value shift in societya technological innovation that might be permanent or a paradigm change.
The Buying Process Generally speaking, buyers run through a series of steps in deciding whether to purchase a particular product.
Understanding the Competitors Every niche has different players fighting for the same spot. Some of these factors are controllable while some are uncontrollable and require business operations to change accordingly. Physical Environment The physical environment includes the natural environment in which the business operates.
Issues are often forerunners of trend breaks. They must stay informed of trends so they can be part of the next big thing, rather than becoming outdated and suffering the consequences financially.
Share on Facebook Businesses large and small are affected not only by their own internal factors, but also by environmental factors over which they have little if any control. The marketing environment consists of the micro and macro environment.
The external information sources includes: Each tries to capture market share by convincing people that its soft drinks are better.
To design effective strategies, marketers need to find the answers that consumers give to questions such as these. International markets include buyers in other countries and includes customers from the previous categories. It is important to place equal emphasis on both the macro and micro environment and to react accordingly to changes within them.
Essential for planning An understanding of the external and internal environment is essential for planning for the future. The first step of the environmental scanning process requires the identification of the needs and the issues that have occurred that caused the organization to decide an environmental scanning is required.
Social-Cultural Environment The social-cultural aspect of the macro environment is made up of the lifestyle, values, culture, prejudice and beliefs of the people. The technological environment is perhaps one of the fastest changing factors in the macro-environment.
Successful marketing often hinges on understanding consumer behavior—the decision process that individuals go through when purchasing or using products. Another aspect of the macro-environment is the economic environment. The five steps are fundamental in the achievement of each step and may develop each other in some form: Taken together, they make up its external marketing environment, which includes regulatory and political activity, economic conditions, competitive forces, changes in technology, and social and cultural influences.
The Competitive Environment Imagine playing tennis without watching what your opponent was doing. Environmental scanning reinforces productive strategic plans and policies that can be implemented to make the organization get the maximum use of the business environment they are in.
To spot trends and other signals that conditions may be in flux, marketers must continually monitor the environment in which their companies operate. You also may have to put major marketing initiatives on hold until the supply becomes more reliable or costs level out.
Shifting Gender Roles For reasons such as the rising number of two-income families, male-female roles related to families, jobs, recreation and buying behavior have changed significantly.
Population Demographics Demographics involve the study of population factors such as the percentage of the population who are of a given occupation, gender or race. From a marketing standpoint, this means that many people, especially two-income households, with more income but less time are more willing to pay for convenience.Unfortunately, there are other forces at work in the marketing world—forces over which marketers have much less control.
These forces make up a company’s external marketing environment, which, as you can see in Figure “The Marketing Environment. Marketing Environment is the combination of external and internal factors and forces which affect the company’s ability to establish a relationship and serve its customers.
The marketing environment of a business consists of an internal and an external environment. All the factors which affect the operations of a firm are known as marketing environment.
Few of these factors can be controlled by the firm but not all. Few of these factors can be controlled by the firm but not all. Some of these factors are controllable while some are uncontrollable and require business operations to change accordingly. Firms must be well aware of its marketing environment in which it is operating to overcome the negative impact the environment factors are imposing on firm’s marketing activities.
Successful marketing depends partly on the ability of a company to manage its marketing programs within its social environment. Social environmental forces are those forces that involve attitudes and shared beliefs of the population.
Micro environment refers to the forces closely influencing the company and directly affect the organization’s relationships. The factors include the company and its current employees, its suppliers, marketing intermediaries, competitors.Download