Discuss the Marketing Environment Essay

The Marketing environs consists of a complex set of interacting forces and influences outdoors the marketing department of an organization. The Marketing surround affects the organizations competency to build and maintain mutually beneficial relationships with its guide guests. Through consecutive monitoring its Marketing Environment a telephoner mustiness(prenominal)(prenominal) be able to anticipate change and act in a professional active way rather than leaving it to a reactive reaction. It must in like manner nurture up to date by realizing any potent changing forces. It does this by monitoring SWOT i.e. Strengths, Weaknesses, Opportunities and Threats. Obviously wanting to maximize on Strengths and Opportunities and eliminate Weaknesses and Threats. Marketers must use marketing intelligence and market research when monitoring the Marketing Environment.The Marketing Environment faecal matter be divided into two main categories the Micro and the Macro Environment .The Micro EnvironmentThis can also be divided. innate Environment and Forces close to the organization.The Internal Environment. This consists of Top Management and Other departments.The Top management is responsible for stage setting the organizations overall mission, objectives, strategies and policies to guide all the organizations departments and employees. The success of the family is dependant on the competence of the Top managers.Other departments must co-ordinate their efforts as to maximize potential and avoid conflicts. The smoother the departments work together the better the overall outcome is going to be. All employees should realize the importance of cosmos market-orientated and of delivering customer happiness.Forces close to the organization. This consists of Competitors, MarketingIntermediaries, Suppliers of resources, Customers and Publics.Competitors must offer superior value & satisfaction than their competitors and marque it widely known throughout the nates market. Companies must make an effort to attract their target customers and retain them by delivering customer satisfaction. These companies must watch their competitors closely as to retain their market shargon and peradventure win some of the competitors market sh ar.Marketing Intermediaries These argon firms that assist the party hiring them to promote, sell and distri providede its products to target customers. Resellers will friend happen upon target customers or sell to them. Transportation firms help companies linage and transport goods. Agencies providing marketing serve be marketing research agencies, publicise agencies, and marketing consulting firms. Financial intermediaries ar organizations that will sell financial operate to companies.Suppliers of resources A company must be very careful as to watch for any changes (shortages, delays, labour strikes etc) as they are damaging to the companies sales and reputation. The organization is as efficient as its suppliers.Customers Firstly a company must identify its target market. Then develop the right 4Ps to build long term customer relationships. An organizations target customers may be part of different markets. Consumer markets which are people who buy for personal use, these are called final consumers. Business Markets are companies that buy goods or services in order to use them for production in order to resell at a profit, these are called business customers. Government 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 acquire decisions are made.Publics are groups that see an authentic or p otential interest in or on the companies office to achieve 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 erupt into quartette categories demographic forces, Natural forces, Political forces and Social forces.Demographic ForcesThis is the study of the universe. Demographic trends include Growing world population, Ageing population, Increasing Diversity, Changes in family structure, and a to a greater extent than Educated population.Growing world population The number of necessarily increases as the population increases. These increased needs backed by get power create market opportunities. These opportunities must be exploited.Ageing population If the older segment of the population 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 suitable for an older market on top of their veritable 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 referable to their nationality or race. Due to advancements in technology and transportation this has and is likely to detain increasing.Changes in family structure Nowadays families have gotten smaller. This inwardness that the usual compute for food etc is obviously going to get smaller i.e. with a high standard of living an increase in purchases of variousproducts is probable. Women working have also increased so with money in their pocket a new-fangled segment of potential customers has been created. There is also a geological fault in husband and wife roles so now household products should also be aimed at husbands as well as wives.A more educated population As a result of this the require for qual ity products, book, formal clothing etc has increased.Natural ForcesThese are forces to do with natural resources. These forces can be split into four categories Raw material shortage, increase pollution, Increased government noise and Environmentalism.Raw Material Shortage Non renewable resources put a serious threat. Companies face problems such as increasing cost 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 substitute rate. Companies using these resources face the same problems. Seemingly infinite resources are being destroyed due to pollution. Companies causing such harm face hurtful word of mouth and a bad reputation.Increased pollution This poses a health as well as other threats to the general society. 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 not break laws and face consequences.Environmentalism These cause twitch sometimes so much that they actually damage a companys reputation and influence government intervention. Now companies go beyond and develop a plan that is known as an environmentally sustainable strategy and develop ecologically safer products.Political ForcesThese are forces such as laws, government agencies and pressure groups. These forces vary with country and possibly time. There rent out 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 brotherly codes are also considered. Most Businesses adopt the Societal Marketing Concept. economical ForcesThese are forces that affect consumers spending ability and spending patterns. These are split into Changes in clean Income, Changes in Income dispersal, and Changing Consumer Spending Patterns.Changes in Average Income means that a high average income level by means of a raise can lead to an increase in demand for quality products and a go across for cheaper, more inferior products. Obviously a fall in average income can lead to the opposite. Companies must at that placefrom 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 spot changes to identify the trends in its target market/s. Companies can choose to offer two or more variations of their product in order to satisfy all parts 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(prenominal) than housing, transportation et c. This is what help businesses decide on whether to expand in the same line of products or find an alternative line.Cultural ForcesBeliefs and value are divided into core beliefs and values and beliefswhich are difficult to change, and lowly 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 check out 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 institutions a substantiative attitude towards an institution means that people will trust 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 natural environment if people olfactory modality close to nature a demand in products such as health food will increase. i.e. if the company harms the environment this will formulate badly.6. the universe and spirituality if religious convictions and practice falls, materialismtakes over. If it doesnt fall companies promote their products with a spiritual theme.Any organization needs to research such views and adjust each of the 4Ps accordingly.Technological 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 die more efficient, thus making them more successful.