The Competitive Environment Imagine playing tennis without watching what your opponent was doing. The external information sources includes: Psychological Influences Under this category, we can identify at least five variables: Economic Factors— Every business operates in the economy and is affected by the different phases it is undergoing.
Government— The Government departments make several policies viz. Businesses that deal with necessities are less likely to be seriously affected by downswings, although a reassessment of the product line and its price point may be in order. All these actions occasioned changes in the marketing strategies of affected companies.
Perhaps you wanted to prepare for a particular career, to become better educated, or to postpone going to work full time. Management creates appropriate steps that will position the organization in the current business environment.
Internal Environment — The Internal Marketing Environment includes all the factors that are within the organization and affects the overall business operations.
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. Therefore, marketing environment plays a crucial role in the operations of a business and must be reviewed on a regular basis to avoid any difficulty.
The telemarketing industry fired workers and scrambled to reinvent its entire business model. To remain competitive a company must consider who their biggest competitors are while considering its own size and position in the industry.
The marketing environment can be broadly classified into three parts: Macro environmental factors include social, economic, political and legal influences, together with demography and technological forces. Did we miss something. Videotape makers who were monitoring technological trends in the industry would probably have taken steps to keep up go into DVDs or otherwise protect themselves from losses maybe even getting out of the market.
Micro-environment[ edit ] Company aspect of micro-environment refers to the internal environment of the company. Meanwhile, Coke and Pepsi have to watch Nantucket Nectars, whose fruit drinks are substitute products.
It allows the organization to adapt and learn from that environment. For example, financial publics can hinder a company's ability to obtain funds affecting the level of credit a company has.
In one desperate attempt to get their attention, an advertiser paid college students fifty cents to view thirty-second ads on their computers Baker, To design effective strategies, marketers need to find the answers that consumers give to questions such as these.
Demographic Environment The demographic environment is made up of the people who constitute the market. The step four of the environmental scanning process is all about the communication of the results obtained in step three.
For example, privacy laws may remove valuable access to consumers and cause a change in marketing strategy altogether. Naturally, business thrives when the economy is growing, employment is full, and prices are stable.
Competitors— Keeping a close watch on competitors enables a company to design its marketing strategy according to the trend prevailing in the market. Supply Lines Product supply lines are affected by factors such as weather, natural disasters and the cost of fuel.
Before starting the process there are several factors that need to be considered which include the purpose of the scanning, who will be participating in the processes and the amount of time and the resources that will be allocated for the duration of the scanning process.
Thus, all the marketing activities should be designed that result in increased welfare of the society as a whole. There are even restrictions for some products as to who the target market may be, for example, cigarettes should not be marketed to younger children.
International markets include buyers in other countries and includes customers from the previous categories. Thus, marketing activities should be undertaken keeping in mind the returns to shareholders. G2C markets government to citizen develop when governmental institutions become sellers and citizens assume the role of buyers.
In matching products with external factors, apply each factor only once. 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. 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. Describe the Forces in the Marketing Environment That Affect an Organization's Marketing Decisions by Gabrielle Brown - Updated September 26, Making marketing decisions is among the key roles of management in directing the organization.
Marketing decisions must take into account these environmental factors to create an accurate picture of the marketplace and the company's standing within it.
To ignore the outside factors is to set yourself up for failed marketing and lost revenue that can, in turn, affect the health of your entire brand.
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.
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.What forces in the marketing environment