Marketing Environment

12 Key excerpts on "Marketing Environment"

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  eBook - PDF

  Marketing of Hospitality Services

  • Abhishek Singh(Author)
  • 2019(Publication Date)
  • Society Publishing

    (Publisher)

  The marketing department strives to achieve all these faced with threats and opportunities in the external market environment. According to Kotler, (2008), a Marketing Environment is a set of all the external and internal factors that influence the marketing function in a business. In a company, the Marketing Environment consists of all the forces and actors operating inside and outside of marketing that directly influences the ability of the company to establish a lasting relationship with the customers. In this definition, it is vital to note that the forces that determine the success of a marketing campaign launched by a company may be acting internally or externally. Within the organization, the forces affecting the management function could be outside the management function, while outside forces could be part of the macro or microenvironment. In the past, every marketing discussion was centralized on the customer. Notably, the focus on the customer as the reason behind the marketing function is ideal and justifiable as every business looks forward to generating profits by meeting the unsatisfied needs and wants of the consumer. In implementing a successful marketing philosophy in the business, it is important for the business to study the consumer behavior and understand clearly how customers in different market segments behave. Note that successful marketing in the modern market goes beyond an in-depth understanding of the consumer behavior. For organizations to be successful, they must monitor the changing wants and needs of the target markets and the changing Marketing Environment. Marketers can adapt their strategies to meet new marketplace opportunities The Marketing Environment 149 and challenges by understanding the Marketing Environment. Most of the successful organizations are aware of the significance of launching a well-researched marketing campaign and monitoring and adapting to the changing Marketing Environment.

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  Fundamentals of Marketing

  • Geraldine McKay, Paul Hopkinson, Lai Hong Ng, Geraldine McKay, Paul Hopkinson, Lai Hong Ng(Authors)
  • 2018(Publication Date)
  • Goodfellow Publishers

    (Publisher)

  2 2 The Marketing Environment Elaine Collinson The Marketing Environment is defined as those actors and forces external to the firm’s marketing management function, which have the potential to affect the business’ ability to successfully develop and maintain transactions with its customers. (Kotler, 1998). The factors affecting how well a company meets its customer needs are a combination of the external forces, which dictate the operating environment of the business and the inter-nal organizational pressures, which determine the nature of responses to those forces. Internal environmental forces tend to be of a more controllable nature than external forces. The external environment consists of a number of factors with degrees of influ-ence at different stages in a product’s life or a company’s development. Environmental analysis All relevant external forces should be analysed as part of an ongoing planning process, in order to identify any changes in the operating environment, which could either represent a threat to the firm’s current position or an opportunity to gain additional competitive advantage. This process is known as environment scanning or analysis . External forces The external forces, also known as the macro environment , are often outside the control of the firm: Internal forces The internal forces, or the micro environment , focus on the organization itself and how its characteristics and composition influence the ways it responds to the target market. It also considers how it is portrayed to the target market.

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  N4 Principles of Marketing

  • B van der Westhuyzen, J van der Merwe, B van der Westhuyzen, J van der Merwe(Authors)
  • 2014(Publication Date)
  • Future Managers

    (Publisher)

  6. Report, after a practical survey at an enterprise of their choice, on the influence of these factors on the actions of the particular enterprise; how the enterprise overcomes the difficulties and utilises the opportunities. Answer questions on the module based on simple and applicable case studies. 28 Module 2 • The Marketing Environment 1. Introduction No company can exist in isolation. If a company aims to have any success at all in the execution of its marketing attempts, it is necessary that it should consider all the variables in the environment. Marketers must constantly monitor the environment because the Marketing Environment is: • Dynamic – which means it is constantly changing. • Interrelated – which means that the elements influence one another. DEFINITION The Marketing Environment of an organisation is the total of all variables that can influence the survival, efficient operation and profitability of the company in the short and long term. The success of a company’s marketing programme depends on the company’s ability to adapt its marketing programmes to changes in the environment. The Marketing Environment can be divided into three important systems: • The internal micro environment consists of controllable variables which exist inside the company. Examples of internal variables are the company’s mission, objectives, marketing mix, resources and the culture of the organisation. • The external market environment is found directly outside the company and consists of variables such as consumers, suppliers, intermediaries and competitors. • The external macro environment consists of variables indirectly outside the company. Examples are social, technological, political, economic, physical and international factors.

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  eBook - ePub

  Management of Marketing

  • Paul Reynolds, Geoff Lancaster(Authors)
  • 2005(Publication Date)
  • Routledge

    (Publisher)

  Although marketing-orientated firms have direct control over their mix elements, they do not formulate plans and strategies in a vacuum. As we have discussed, organisations are influenced by a plethora of environmental factors largely outside their control. Environmental change poses both opportunities and threats to the marketing firm. The success of the firm in meeting the challenge posed by change will depend on the ability of management and individual managerial skills in carrying out the following tasks:

  1. monitoring the external environment and anticipating significant changes;
  2. evaluating the likely effect of change or potential change on the business activities of the firm;
  3. drawing up short-, medium- and long-term plans to deal with the new environmental scenario (this will include the formulation of contingency plans);
  4. using controllable variables under management’s command (the marketing mix elements) to successfully adapt to changes in the external environment;
  5. monitoring the ability of plans and strategies to successfully cope with, and ideally capitalise on, changed conditions and to undertake corrective action where necessary.

  2.3 The General Marketing Environment

  The general Marketing Environment is made up of a number of separate, but interrelated elements. From a conceptual point of view, it is easier to think of these individual elements as ‘sub-environments’. Marketing management is primarily concerned with anticipating and reacting to perceived changes occurring outside the organisation itself. This external environment, as already noted, is referred to as the ‘macro-environment’.

  The term ‘general Marketing Environment’ refers to all factors and forces that impinge upon marketing management’s ability to conduct its affairs successfully. This also includes inter-departmental factors and influences. In Chapter 1

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  Strategic Marketing Management

  • Richard M.S. Wilson, Colin Gilligan(Authors)
  • 2012(Publication Date)
  • Routledge

    (Publisher)

  However, before going on to consider some of the ways in which industry structure influences strategy, we need to examine the various dimensions of the political, economic, social and technological environments. It is this that provides the basis of the next section.

  4.6 The political, economic, social and technological environments

  At the beginning of this chapter we suggested that effective marketing planning is based on two important analytical ingredients. First, market opportunity must be analysed and, second, the company’s ability to take advantage of these opportunities and cope with threats must be assessed.

  Under the first heading, there are four basic building blocks:

  1. Customers must be analysed to determine how the market can be segmented and what the requirements of each segment are
  2. Competitors must be identified and their individual strategies understood
  3. Environmental trends (social, economic, political, technological) affecting the market must be isolated and forecasted
  4. Market characteristics in terms of the evolution of supply and demand and their interaction must be understood.

  It is point 3 to which we now turn our attention. We do this by examining each of the elements of the PEST framework in turn, and then try to bring them together in Illustration 4.6, where we make reference to what we term world changing megatrends.

  The political (and legal) environment

  Marketing decisions are typically affected in a variety of ways by developments in the political and legal environments. This part of the environment is composed of laws, pressure groups and government agencies, all of which exert some sort of influence and constraint on organizations and individuals in society.

  With regard to the legislative framework, the starting point involves recognizing that the amount of legislation affecting business has increased steadily over the past two decades. This legislation has been designed to achieve a number of purposes, including:

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  Applied Marketing

  • Daniel Padgett, Andrew Loos(Authors)
  • 2023(Publication Date)
  • Wiley

    (Publisher)

  From the following discussion, you will see the need for marketing managers to plan for both the expected and the unexpected. 3.1 Concept Check 1. What is the Marketing Environment? If someone said it includes everything, how would you respond? 2. What is the difference between the micro-environment and the macro-environment? Which is more controllable? micro-environment Anything in the environment that directly affects or is directly affected by the marketing manager’s decisions. Sometimes referred to as the internal environment. macro-environment Environment that includes general trends the company does not directly influence. Sometimes referred to as the external environment. Social/Cultural Political/ Regulatory Legal Publics Economic/ Financial Technological Suppliers Natural/ Environmental Customers Company Intermediaries Competitors Micro-Environment Macro-Environment Market FIGURE 3.1 The Marketing Environment Encompasses Many Facets. 46 CHAPTER 3 The Marketing Environment 3.2 The Micro-Environment LEARNING OBJECTIVE Identify the seven main components of the micro-environment. Remember that the micro-environment includes anything in the environment that directly affects or is directly affected by the marketing manager’s decisions. Managers need to under- stand and evaluate the micro-environment on a regular basis. Market The most basic element of the micro-environment is the market itself. A market is a collec- tion of buyers and sellers interested in making similar or related exchanges. Ben & Jerry’s is a manufacturer (see Figure 3.2). Customers buy their ice cream in grocery stores, perhaps selecting Cherry Garcia or Chunky Monkey instead of Häagen-Dazs Butter Pecan. The col- lection of potential customers and sellers is all part of the same market as are those that are related to or facilitate those exchanges. Think of related products that someone might choose instead of ice cream.

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  Applied Marketing

  Connecting Classrooms to Careers

  • Daniel Padgett, Andrew Loos(Authors)
  • 2019(Publication Date)
  • Wiley

    (Publisher)

  The Micro-Environment Market Customers Company Competitors Suppliers Intermediaries Publics 3.2 Identify the seven main components of the micro-environment. The Macro-Environment (SPENT) Social/Cultural Political/Regulatory/Legal Economic/Financial Natural/Environmental Technological 3.3 Identify the five main components of the macro-environment. 38 3.1 The Marketing Environment 39 social mission, especially those that provided a more sustainable form of social aid such as providing jobs, training, and education. The timing was right for L.A. Kitchen as these trends in the larger environment came together. From Chapter 2, recall that the first element of the marketing plan is a situation analysis. It should include looking internally and externally at what is happening in and around the mar- keting environment in which the marketing plan must be developed and implemented. In this chapter, we describe both the internal and external environment in more detail to provide a more comprehensive discussion of the Marketing Environment. We discuss two components of the environment—the micro-environment and the macro-environment—so you gain a better sense of what marketing managers must account for when making decisions. 3.1 The Marketing Environment To get a better understanding of the Marketing Environment, let’s first think about your own personal environment. What makes up your environment? Look around you. What do you see? You might be in a classroom, the library, or your apartment. Everything you can see, hear, and touch is part of your environment and can influence your behavior. You are probably sitting in a chair because there is one, and because it is generally more comfortable than standing while you read. Perhaps your classroom is cool, so you wear warm clothing. If you are studying with friends in your apartment, you will behave differently than if you are in a formal classroom setting.

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  Entrepreneurship Marketing

  Principles and Practice of SME Marketing

  • Sonny Nwankwo, Ayantunji Gbadamosi, Sonny Nwankwo, Ayantunji Gbadamosi(Authors)
  • 2020(Publication Date)
  • Routledge

    (Publisher)

  Chapter 4

  The entrepreneurship Marketing Environment

  Ayantunji Gbadamosi

  LEARNING OBJECTIVES

  After reading this chapter, you will be able to:

   Understand the meaning of Marketing Environment;

   Discuss the nature of the SMEs Marketing Environment;

   Differentiate between the external and internal Marketing Environment of SMEs;

   Understand the impact of Macro- and Microenvironmental factors on the marketing activities of SMEs;

   Explain environmental scanning and why it is important in SME marketing;

   Discuss the relevance of SWOT analysis to SME marketing;

   Understand how SMEs cope with the turbulence in the Marketing Environment.

  INTRODUCTION

  No business exists in a vacuum. Irrespective of the size and scale of their operations, business organisations operate within environments which either directly or indirectly influence how they plan, organise, and execute their marketing activities. Similarly, regardless of whether they are small and medium scale enterprises (SMEs) or large corporations, these environments contain certain factors and forces that combine to impinge on how they relate to their customers. Therefore, it is logical to state that having an in-depth understanding of the Marketing Environment is very fundamental to the study of SME marketing. Now, let us first consider a working definition of Marketing Environment that will guide our discussion in this chapter. We may simply define Marketing Environment as the totality of factors and actors that both presently influence or in the future might influence how marketers go about satisfying the needs and wants of their target market.

  From this definition, we can deduce that organisations interact with the various elements of the environment and the extent to which they are able to do this effectively is significantly determined by the characteristic of the organisation involved. This is where the distinction between the context of SMEs and large corporations can be appreciated. Although, there is a clear lack of consensus on what constitutes the definition of SMEs as they vary with sectors, and most importantly across different countries of the world, there is agreement that they are smaller in many ramifications when compared to their large corporation counterparts. This suggests that the impact of the environmental factors on these organisations, and the way they also respond to them might be dissimilar, hence our need to look into Marketing Environment in the context of SMEs.

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  Strategic Marketing Management in Asia

  Case Studies and Lessons across Industries

  • Syed Saad Andaleeb, Khalid Hasan(Authors)
  • 2016(Publication Date)
  • Emerald Group Publishing Limited

    (Publisher)

  2 ▾ Marketing Environment Geok Theng Lau In this chapter, we examine the macro-environment that affects marketing analysis and decision-making. We define the macro-environment and explore its impact. Key developments and trends in various aspects of the macro-environment in Asia are examined thereafter to highlight the interplay between the environment and marketing . The Macro-Environment and Its Impact The macro-environment consists of external forces outside the firm. Since these forces are external to the firm, many of them may be considered uncontrollable. The company needs to anticipate and monitor these forces and adapt to changes in these forces. For example, economic downturns may be uncontrollable and the firm may have to anticipate them and incorporate them into its market-ing planning cycle. Other forces may be controllable and the com-pany should attempt to shape them in such a way as to benefit from future changes in these forces. For example, the company may be able to influence and shape certain social habits which may increase the usage of the company ’ s products. 15 Macro-environmental forces are broad forces; they affect the company directly as well as indirectly through their effects on other parties including the company ’ s customers, competitors, suppliers and distributors ( Figure 1 ). Forces, which increase the operating costs of suppliers, may result in their charging higher prices; in turn, it will result in higher costs for the company. Forces, which affect the shopping habits of customers, may result in their visiting different types of stores and may require the com-pany to change its distribution strategy. These macro-environmental forces encompass different areas: political and regulatory, economic and financial, social and cul-tural, demographic, and natural environments. These forces may affect one another and the cross-impact of each other may also have to be examined.

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  Available until 4 Dec |Learn more

  Strategic Marketing

  An Introduction

  • Tony Proctor(Author)
  • 2002(Publication Date)
  • Routledge

    (Publisher)

  Organizations need to respond and adapt to changing environmental conditions if they intend to survive. They can even instigate changes in the environment which are in their own interests. Both demand an understanding of those factors and forces which bring about change in the environment. Ideally, an organization should adapt to changes as they occur, even anticipate them in advance or systematically instigate changes to its own advantage. An inability to do so can put organizations in positions where their shor t- and long-term survival is jeopardized. The business environment is the setting within which a business operates, formulates policies and makes decisions. It is usual to distinguish between the inter nal and the exter nal environment. The for mer usually comprises the various assets and resources possessed by the organization. That is its workforce, plant and machiner y, know- how, financial resources, etc. The latter refer s to people, institutions and developments, etc. which exer t an external influence on how the organization performs. Of course, with the emergence of strategic alliances and networks such a definition of boundaries does tend to become more blurred.

  Firms need to know all about the business environment in which they operate. It is essential that they can anticipate the changes that are likely to take place in the Marketing Environment in the foreseeable future. However, as noted above, it is not simply a matter of adapting to change. Organizations can also exercise their own influence on the environment. Among the ways that this can be achieved is the development and commercialization of new technological ideas. These new technologies then become par t of the business environment and in their turn have an impact upon what other organizations can do.

  Considerable control can be exercised over its internal environment by a firm, but a firm cannot exert control in the same way or to the same extent over the external environment. It can only attempt to influence it. There are various ways of influencing events in the external environment. These may include activities such as lobbying among leg islative g roups. The latter is what organizations often do when tr ying to influence the for mulation of European Community directives which can have an impact on such things as product design safety standards, etc.

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  Management

  • Ricky Griffin(Author)
  • 2021(Publication Date)
  • Cengage Learning EMEA

    (Publisher)

  To do so, therefore, the manager must first thoroughly understand the nature of the organization’s environments. 3 The external environment is everything outside an organization’s boundaries that might affect it. As shown in Figure 3.1, there are actually two separate external environments: the general environment and the task environment. An organization’s internal environment consists of conditions and forces within the organization. Of course, not all parts of these environments are equally important for all organizations. A small two-person partnership does not have a board of directors, for example, whereas a large public corporation is required by law to have one. A private university with a large external environment Everything outside an organization’s boundaries that might affect it internal environment The conditions and forces within an organization Copyright 2022 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 62 endowment (like Yale) may be less concerned about general economic conditions than might a state university (like the University of Mississippi), which relies on state funding from tax revenues. Still, organizations need to fully understand which environmental forces are impor- tant and how the importance of others might increase. 3-2 THE EXTERNAL ENVIRONMENT As just noted, an organization’s external environment consists of two parts. The general environment of an organization is the set of broad dimensions and forces in its surroundings that create its overall context.

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  Advertising & Promotions NQF3 SB

  TVET FIRST

  • Sparrow Consulting(Author)
  • 2013(Publication Date)
  • Macmillan

    (Publisher)

  Ultimately, the main aim of doing business is to make money. If you do not compete successfully in the competitive business environment, you will not succeed in making money for your company and for yourself. Competitive environment : Businesses are in competition with each other to see which one can be the most successful. Words & Terms Why is there so much competition between businesses in the competitive environment? Think about it 139 Module 10: Explaining the nature and extent of the competitive environment Figure 10.1: A competitive environment. The PESTLE analysis The competitive environment is part of the external environment of your business. When you analyse this, you are forced to look at the different external factors that may affect the business. A PESTLE analysis is a handy tool for analysing which external factors may affect the business and for analysing the competitive environment in which you do business. P olitical Is there any political instability at the moment in the country where your business is trading? E conomic What is the economical situation like at the moment, and what is it expected to be like in the future? S ocial Is there any social instability that you should be aware of? T echnological What new technological advances are available to the business? L egal What legal constraints does your business have? E nvironmental What impact does your business have on the natural environment? Competition is actually a good thing in the business world. It is the reason why organisations constantly upgrade their technology, products, etc., because if a company does not upgrade as its competitors do, it will fall out of the “race” and fail. Competition is also an advantage to customers because the competing companies keep their prices as low as possible to avoid losing customers to their competitors. In the workplace

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