Marketing Environment
—Marketing environment is divided in to two broad categories- micro environment, that is specific to the given business, and macro environment, specific to the overall industry.
—Micro Environment – Factors that an organization has direct control over
—Macro Environment – Factors on which organization has no control at all.
—The firm covers both these parts in its environmental analysis. Thus it involves the diagnosis of the mega environment as well as the environment that is specific to the given business. —Under the mega or the macro environment the firm studies the political, demographic, and the other environmental factors. As regards the environment that is specific to the given business, the firm studies the position of the industry concerned, especially aspects such as the structure of the industry, the nature of competition, the scope for invasion by substitute products, etc. It also studies factors relating to the customer and factors relating to demand.
— —Marketing Environment is nothing but external forces which influence on the marketing kit of the company and ultimately consumer will be benefitted out of the Marketing Environment.
— The government policies plays core role along with the technological intrinsic element of opportunity and other factors as part of marketing environment.
—Marketing Environment has lots of in-depend and un-controllable variables of the social and economic factors, which matters most on the marketing mix of the company.
— —According to Philip Kotler, “The company’s marketing environment is made up of the sectors & forces outside the firm are marketing function which infringe upon the ability of marketing management to develop & maintain a successful relationship with the firms target audience”.
—The marketer has to do lot of forecasting of his product strategy both micro as well as macro level and draw a suitable marketing strategy to market his products.
—Indian market has un-controllable variables & factors. Economic, Cultural, Social, Political, Technological, Legal, Demographic & lot more Factors.
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—A particular market environment and formulating strategies is mainly based on the SWOT Analysis tool.
—SWOT Analysis: When you are planning strategically based on the environment with any company it is useful to complete an analysis that takes into account not only your own business, but your competitor’s businesses and the current business environment as well. Completing a SWOT analysis helps you to identify ways to minimize the effect of weaknesses in your business while maximizing your strengths. Ideally, you will match your strengths against market opportunities that result from your competitors’ weaknesses or voids.
Marketing Environment- A SWOT Analysis
—Performing SWOT or Situation Analysis
—Organization identifies internal strengths and weaknesses & external opportunities and threats. It seeks to answer two general questions:
1. Where is the firm now?
2. In what direction is it headed?
—As a matter of fact the situation analysis accomplishes the following:
- —It recognizes strengths and weaknesses relative to competitors.
- It searches the environment for opportunities and threats.
- It assesses an organization’s ability to capitalize on opportunities and to minimize threats.
- It anticipates competitors’ responses to company strategies.
— The Marketing Environment
External Environment: Outside factors that influence marketing programs by posing opportunities or threats
Five environmental factors:
- —Political-Legal Environment
- —Social-Cultural Environment
- —Technological Environment
- —Economic Environment
—Competitive EnvironmentApplication of SWOT Analysis
—Situation analysis can, and should be, conducted at any point in an organization’s life. Based on the total analysis, a product can be plan.
The Industry Life Cycle
The Industry Life cycle reflects the changes that take place in an industry over a period of time.
Birth stage: firms seek to develop a winning technology.
—Growth stage: Product gains customer acceptance and grows rapidly. New firms enter industry, production improves, distributors emerge.
—Shakeout stage: at end of growth, there is a slowing customer demand. Competitor rivalry increases, prices fall. —Least efficient firms fail and leave industry.
—Maturity stage: most customers have bought the product, growth is slow. Relationships between suppliers, distributors more stable. Usually, industry dominated by a few, large firms.
—Decline stage: falling demand for the product. —Prices fall, weaker firms leave the industry.
*** Marketing Environment ***
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