Discuss the Marketing Environment Essay

The selling purlieu consists of a complex set of inter fiddleing forces and influences outside the staging department of an face. The market milieu affects the organizations ability to build and restrain mutually beneficial relationships with its tail end customers. by continuous monitor its Marketing milieu a comp any moldiness be able to anticipate replace and act in a pro spry way rather than leaving it to a reactive reaction. It moldiness in addition progress up to date by realizing any effective changing forces. It does this by monitoring SWOT i.e. Strengths, Weaknesses, Opportunities and Threats. Obviously needinessing to maximise on Strengths and Opportunities and eliminate Weaknesses and Threats. Marketers moldiness usance tradeing intelligence and grocery seek when monitoring the Marketing Environment.The Marketing Environment stinkpot be divided into ii primary(prenominal) categories the micro and the Macro Environment.The Micro EnvironmentThis can i n addition be divided. cozy Environment and Forces dear to the organization.The Internal Environment. This consists of go on Management and Other departments.The carro social functionl management is responsible for setting the organizations boilers suit mission, objectives, strategies and policies to guide all the organizations departments and employees. The success of the keep union is dependant on the competence of the Top managers.Other departments must(prenominal)(prenominal) co-ordinate their efforts as to maximize potential and avoid conflicts. The sleek the departments work together the better the overall outcome is waiver to be. All employees should illuminate the importance of being martplace-orientated and of delivering customer satisfaction.Forces completion to the organization. This consists of Competitors, MarketingIntermediaries, Suppliers of resources, Customers and Publics.Competitors must offer ranking(a) value & satisfaction than their competitors a nd make it astray kn receive throughout the objective market. Companies must make an effort to attract their target customers and deem them by delivering customer satisfaction. These companies must watch their competitors closely as to retain their market sh ar and maybe bring home the bacon some of the competitors market shargon.Marketing Intermediaries These be firms that assist the social club hiring them to promote, sell and distri excepte its products to target customers. Resellers exit help find target customers or sell to them. Transportation firms help companies taint in and transport goods. Agencies providing market services be marketing research agencies, advertising agencies, and marketing consulting firms. Financial intermediaries be organizations that willing sell financial services to companies.Suppliers of resources A caller-up must be very metrical as to watch for any transposes (shortages, delays, labour party strikes and so on as they atomic numb er 18 damaging to the companies gross sales and reputation. The organization is as efficient as its suppliers.Customers Firstly a order must identify its target market. Then forge the right 4Ps to build coarse term customer relationships. An organizations target customers may be part of different markets. Consumer markets which argon people who buy for mortalal use, these atomic number 18 called final consumers. Business Markets be companies that buy goods or services in fellowship to use them for production in found to resell at a profit, these are called business customers. organization activity markets rent goods or services to carry out the main functions of the government.Institutional markets are schools & hospitals that provide goods or services to those in the organization. International markets are any of the customer markets but are situated overseas. Each market has its own particular features. Organizations must study the market/s to which they are selling to so as to understand its/their characteristics including the way purchase decisions are made.Publics are groups that have an true(a) or potential interest in or on the companies ability to strain its objectives. These publics include Media, Financial, Local, Internal, General, Citizen Action, or Government.The Macro EnvironmentThe Macro Environment can be considered as forces. These forces can be disrupt into four categories demographic forces, Natural forces, policy-making forces and Social forces.Demographic ForcesThis is the study of the race. Demographic trends include Growing world community, ripening people, Increasing Diversity, Changes in family mental synthesis, and a more than(prenominal) Educated population.Growing world population The number of needs increases as the population increases. These increased needs backed by purchasing power create market opportunities. These opportunities must be exploited.Ageing population If the older instalment of the populat ion increases opportunities for companies that target this segment of the market. Likewise it creates threats companies that target a young market. These companies can react by offering a product adapted for an older market on pourboire of their original product.Increasing diversity The nationality and racial make up of the country/ies where they are selling their products should be considered. Peoples wants are generally due to their nationality or race. Due to advancements in technology and transfer this has and is likely to continue increasing.Changes in family structure Nowa sidereal days families have gotten smaller. This stub that the wonted(prenominal) budget for nutriment etc is obviously going to get smaller i.e. with a higher(prenominal) standard of brio an increase in purchases of confusedproducts is probable. Women working have alike increased so with money in their pocket a freshly segment of potential customers has been created. There is also a shift in husb and and wife roles so now household products should also be aimed at husbands as tumesce as wives.A more educate population As a publication of this the demand for quality products, book, formal wear etc has increased.Natural ForcesThese are forces to do with immanent resources. These forces can be disrupt into four categories Raw material shortage, increase contamination, increase government intervention and Environmentalism.Raw existent Shortage Non renewable resources commove a serious threat. Companies face problems much(prenominal) as increasing costs and protests. Some day theyll have to find substitute materials to use in production. Renewable resources also pose a problem if depletion rate supersedes its replacing rate. Companies using these resources face the same problems. patently infinite resources are being ruined due to pollution. Companies causing such(prenominal) maltreat face bad word of blab out and a bad reputation.Increased pollution This poses a h ealth as sound as other threats to the general club. These industries must face bad word of mouth.Increased government intervention This intervention in resource management varies across countries. Government laws and regulations must be monitored by companies as to non break laws and face consequences.Environmentalism These intellect pressure sometimes so untold that they actually damage a corporations reputation and influence government intervention. Now companies go beyond and direct a plan that is known as an environmentally sustainable strategy and initiate ecologically safer products.Political ForcesThese are forces such as laws, government agencies and pressure groups. These forces variegate with country and possibly time. There melodic profligate is to protect organizations from each other, consumers from organizations and their deceptive practices etc, and society as a whole. Businesses are not only limited by laws and regulations but ethical and social codes are also considered. Most Businesses adopt the Societal Marketing Concept.Economic ForcesThese are forces that affect consumers disbursement ability and spending patterns. These are split into Changes in Average Income, Changes in Income Distribution, and ever-changing Consumer using up Patterns.Changes in Average Income means that a high average income aim by means of a grind away can lead to an increase in demand for quality products and a deteriorate for cheaper, more inferior products. Obviously a feed in average income can lead to the opposite. Companies must therefore be very aware of the changing in incomes and adjust to the accordingly.Changes in Income Distribution The segments are rich, middle income, and low income and people living on welfare. These segments sizes are likely to change over time. Once again the company must be monitoring this to bureau changes to identify the trends in its target market/s. Companies can choose to offer deuce or more variations of thei r product in order to satisfy all move of the Income Distribution chain ex. Books.Changing Consumer Spending Patterns Patterns are changing every day. As income increases products such as food etc are spent on less than housing, battery-acid etc. This is what help businesses decide on whether to expand in the same line of products or find an alternative line. ethnic ForcesBeliefs and values are divided into stub beliefs and values and beliefswhich are difficult to change, and alternative beliefs and values which are easier to change.A company must either find a way of adjusting its product to fit the core beliefs and values or try and change the secondary beliefs through marketing activities etc. These beliefs are mainly attributes of ones society. A person holds views on1. her/himself people buy products that parallel their personalities.2. other people people want to interact with society, therefore there is a demand forproducts that improve their relationships with others ex. Clubs etc.3. various refuges a positive attitude towards an institution means that people will reliance this institution. Companies do this buy adopting the Societal Marketing Concept.4. his/her society people prefer buying products made in their own company.5. the immanent environment if people feel close to nature a demand in products such as health food will increase. i.e. if the company harms the environment this will reflect badly.6. the universe and spirituality if spiritual convictions and practice falls, materialismtakes over. If it doesnt fall companies promote their products with a spiritual theme. some(prenominal) organization needs to research such views and adjust each of the 4Ps accordingly. scientific ForcesA new technology implies new market opportunities for some organizations and threats for others. Companies once realizing this must keep up to date in order for technology to help them get more efficient, thus making them more successful.