By and large, managers can control the four Ps of the marketing mix: they can decide which products to offer, what prices to charge for them, how to distribute them, and how to reach target audiences.
These factors—and changes in them—present both threats and opportunities that require shifts in marketing plans.
Federal, state, and local bodies can set rules or restrictions on the conduct of businesses. Moreover, if you operate in foreign markets, you can’t focus on solely domestic economic conditions: you have to monitor the economy in every region where you do business. Meanwhile, Coke and Pepsi have to watch Nantucket Nectars, whose fruit drinks are substitute products.
New technologies also transform the marketing mix in another important way: they alter the way companies market their products. Clothiers who target teens and young adults (such as Gap and Abercrombie & Fitch) must estimate the size of both current and future audiences. The huge wave of baby boomers began arriving in 1946, following World War II, and marketers have been catering to them ever since.
Because birth rates had declined by the time the “Gen X” babies first arrived in 1965, this group had just one decade to grow its numbers.
Generally speaking, buyers run through a series of steps in deciding whether to purchase a particular product. Understanding the buying process of potential students is crucial to college administrators in developing marketing strategies to attract qualified “buyers.” They’d certainly like to know what information you found useful, which factors most influenced your decision, and how you made your final choice.
Did you ever buy something you knew you shouldn’t buy but just couldn’t help yourself—something you simply wanted? It shouldn’t be surprising that marketers are keenly interested in the effect of all these influences on your buying decisions.
A number of forces over which it has little or no control affect a company’s marketing activities.
Taken together, they make up its external marketing environment, which includes regulatory and political activity, economic conditions, competitive forces, changes in technology, and social and cultural influences. Successful marketing often hinges on understanding consumer behavior—the decision process that individuals go through when purchasing or using products.
Shifts in the external marketing environment often necessitate changes in a company’s marketing plans. Experts have ascribed a number of attributes to Generation Y—people born between 1976 and 2001.
A customer focused business ethos is a proven method to increase the chances of a sustainable and profitable future. The plan is a detailed written document which can be used to promote a single product, of form the annual business strategy. Stage 1: Research and planningUnderstand your customer and the marketing environment, look for opportunities for growth.
Stage 2: Developing your marketing strategyIdentify objectives and choose the right path to exploit opportunities highlighted in the research stage.
The marketing plan should provide direction for all relevant members of the organization and should be referred to and updated throughout the year. Examining both the internal and external marketing environments can identify both opportunities and threats to the business and is a core component of the plan. A commonly used method of quantifying the macro external environment is with a PEST analysis. The micro-environment includes factors which are still not directly under the control of the company, but more directly relevant to strategy such as consumer trends, stakeholders, suppliers and competitors. The internal marketing environment includes factors that the business can directly influence.
Once you have completed the internal and external environmental audit, you can summarise your findings using a SWOT analysis which can be used to make key decisions. A 'SWOT analysis' is a useful way of summarizing the results of the environmental audit and presenting the current status of a business. A vision statement is a more long term, ideal-world statement which outlines where you would like to take the business in the long run. Combined with the mission statement, your objectives should be the key statements that drive your business.
Most businesses need to grow, and the Ansoff Matrix (below) is a method of determining the best course of action if growth is your priority.
Once you have determined the product and market you want to be in, the next problem will be setting a price.
The marketing mix is a selection of customer focused business elements which work together as a toolkit to market your product or service. Market penetration strategy – deliberately low pricing in order to enter or control a market quickly.
Place refers to the method of getting your product to the consumer - this could be a dealership or an online shop. Promotion is much more than just advertising - this is the discipline of marketing communications.
People refers to all the customer facing staff in your organisation, not just the sales staff.
Process refers to the procedures which are followed when delivering a service to a customer. This element of the marketing mix should also include your customer relationship management (CRM) process, or in other words, how you manage customers through the purchasing funnel.
When using the marketing mix, it is important to keep in mind the three generic stages of marketing - segmentation, targeting and positioning. An action plan is core to the marketing process – a constantly evolving document which is cascaded to the relevant people and monitored regularly. The final stage of the action plan is the implementation of measurements and controls and reporting results. The balanced scorecard approach is a widely used method of monitoring overall performance and ensuring daily work is focused on the strategic objectives. Traditionally, businesses have tracked success based on just one measure – financial results. Now that you have an accurate picture your plan's success it is important to feedback this information in order to fine tune the strategy and update your actions accordingly.
The marketing planning process is a comprehensive method for examining your business, your market and the environment in order to develop a strategy to exploit opportunities. With these questions in mind when we build our research surveys, we can direct our customer research to include personal elements that will provide a better idea of who our customers are and what they need. Not all of these environmental factors may apply, but it saves the hassles of thinking about what does with this handy chart to refer to. Translating your market research into market requirements, and meeting those market requirements with product requirements essentially means the end-product has been driven into creation by the target customers and the market.
The words “market-driven” and “customer-centric” implies an in-depth understanding of market trends and target customers. At Brainmates we love Product Managers and love helping them deliver awesome products to their customers. Thanks for your thoughts about whether market-driven is a strategy vs tactic come philosophy! Marketing is a management philosophy – running a business to ensure that you satisfy and meet the needs of your customer. If you create a product to meet the needs of the producer who is the user of the product and you market the product to the middleman who may be considered the buyer, you will absolutely be applying the principles of market driven product development.
This sounds very interesting for someone who wants to bring design research and market research together.

Could you speak to some of the methods and techniques you would use to get the insights you are looking for?
Founded in 2004, Brainmates provides professional Product Management and Marketing experience to medium to large organisations.
Brainmates provides Training solutions for Product Management and Product Marketing professionals who want to improve their skills, validate their own approach, or learn a consistent method for a complex role. Whole marketing revolved around building and sustaining profitable relationships with customers. The global marketing environment is changing very rapidly on the face of globe and competition among different companies increasing with every successive day.
Global marketing environment can simply be defined as “All the factors and forces inside or outside an organization or company which affects the marketing strategy to build and maintain successful relationships with targeted customers”.  Here I would like to further brief you with two types of marketing environmental affecting marketing strategies and overall business decision making.
The microenvironment consists of very close factors of a company that affects company ability to serve customers. Macroenvironment includes all large societal forces that affect the micro-environmental forces like demographic, economic, technological, political and cultural forces. Summing up all together, every company must focus on both micro and macro environmental forces in order build successful marketing strategy for rapid growth and to achieve predefined organizational goals. Unfortunately, there are other forces at work in the marketing world—forces over which marketers have much less control.
To spot trends and other signals that conditions may be in flux, marketers must continually monitor the environment in which their companies operate. If you’re trying to sell cars, you know that people facing higher interest rates aren’t so anxious to take out car loans. What if Nantucket Nectars managed to get its drinks into the soda machines at more fast-food restaurants? Consider the revolutionary changes brought about by the Internet, which offers marketers a new medium for promoting and selling a vast range of goods and services. The values and attitudes of American consumers are in a state of almost constant flux; what’s cool one year is out of style the next. The last few decades have witnessed monumental shifts in the makeup of the American workforce.
So must companies that specialize in products aimed at customers in other age brackets—say, young children or retirees. Sincavage, “The Labor Force and Unemployment: Three Generations of Change,” Monthly Labor Review, June 2004, 34.
Advertisers are also busy trying to find innovative ways to reach this group, but they’re finding that it’s not easy. Once you recognized the need to go to college, you probably started gathering information about colleges. For instance, suppose the travel agency that sold you your spring-break getaway found that you bought the package because you viewed it as a reward for studying hard and doing well academically. They go through a series of steps in reaching the decision to buy a product: need recognition, information search, evaluation, purchase, and postpurchase evaluation. All companies are affected by external factors, but certain factors can have a stronger influence on particular products.
The marketing planning process is at the heart of any truly marketing orientated company, and ensures the customer is at the centre of all key decisions. We have split the marketing plan into three steps, which are easy to follow and equally relevant to both small and large businesses. The main purpose of the marketing plan is to provide a structured approach to help marketing managers consider all the relevant elements of the planning process. The whole area is usually broken down into the macro, micro and internal environments as summarised in the diagram below. PEST is an acronym which divides the macro-environment into four areas – Political, Economic, Social, and Technological, examples of which are explained below. Use the primary and secondary (first and second hand) market research information at your disposal to describe your customer. SWOT simply stands for the Strengths, Weaknesses, Opportunities and Threats which have emerged from examining the macro, micro and internal marketing environments. It should explain to customers concisely what the nature of your business is and where you are going, and also provide a motivational tool for employees.
The Boston Consultancy Group matrix is a method of determining which to invest in, and which to drop, shown below. The tactical section of a marketing plan summarises how you intend to use each element of the marketing mix, which can be summarised in seven 'Ps' as shown in the illustration below. Your product based tactics link back to your overall strategy - if your strategy is market penetration (see the Ansoff matrix), then there may be little need to do anything to the product.
Examples of physical evidence include a brochure for a holiday tour, customer testimonials for a dentist, or a portfolio for a website design company. Segmentation is the detailed breakdown of your customers into as much detail as practical, targeting then ensures all elements of the mix are tailored to your identified consumer group. Most action plans are relatively short term documents which focus on the coming year, but longer term implications should also be considered.
Many models for monitoring the performance of businesses have emerged, many of which address the needs of key stakeholders and allow them to evaluate the overall success of a company. However, the scorecard system views the business from four external perspectives to gain a more relevant approach to performance metrics. This is a vital process which should be used by almost every company to ensure a profitable and sustainable future. If your company doesn’t believe in providing products that your customers want, then it is most likely not going to invest in understanding the market and your customers.
When looking at market trends and understanding the market as a whole, it’s best to use the marketing macro- and micro-environment guide. The development of market-driven products should be endorsed by a company that believes and invests in such market research. Using repeatable and flexible frameworks for Product Management and Product Marketing, Brainmates helps clients deliver products to market that customers love. For the purpose of making profitable marketing relationship it is very essential for marketers and marketing students to understand Global Marketing Environment which actually surrounds all these marketing relationships.
So, all successful companies know the vital importance of constantly watching changing global business environment. A recent report of Business Week shows that Asian companies are in a strong rivalry (competition) with U.S.
These include the company itself, its suppliers, marketing intermediaries, customer markets, competitors and different types of publics which affect a company. These are also called outside organizational factors affect marketing strategy and have great impact on an organizational ability to serve its potential customers. This can only be met when an organization have thorough knowledge of global marketing environment.
To get a better idea of how they affect a firm’s marketing activities, let’s look at each of the five areas of the external environment.
Businesses favor some regulations (such as patent laws) while chafing under others (such as restrictions on advertising). Sometimes (but not recently), the news is cause for optimism—the economy’s improving, unemployment’s declining, consumer confidence is up.
Sales will slip, and to counteract the anticipated slowdown, you might have to add generous rebates to your promotional plans. In particular, they need to monitor the activities of two groups of competitors: the makers of competing brands and the makers of substitute products.
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).

Marketers must keep abreast of technological advances and adapt their strategies, both to take advantage of the opportunities and to ward off threats. The number of women at all levels has increased significantly, the workforce has become more diverse, and telecommuting is more common.
Marketers pay particular attention to population shifts because they can have dramatic effects on a consumer base, either increasing or decreasing the number of potential customers. In addition to age, members of each group tend to share common experiences, values, and attitudes that stay with them as they mature. Generation Ys grew up with computers and other modes of high technology, and they’re used to doing several things at once—simultaneously watching TV, chatting on the phone, and playing computing games on the computer. You probably don’t think much, for example, about the brand of gasoline you put in your car; you just stop at the most convenient place.
Perhaps you wanted to prepare for a particular career, to become better educated, or to postpone going to work full time.
This is the kind of information that colleges are seeking when they solicit feedback, both from students who chose their schools and from those who didn’t. Objectively, you may have made a bad decision, but not all decisions are made on a purely objective basis.
In that case, it might promote student summer-travel programs as rewards for a hard year’s work at school. As your understanding of the audience improves, you'll be able to design products which cater for their needs better, and you will be able to communicate with them more directly. However, if you have chosen product development or diversification then a certain amount of research and development, and product design will be needed. Positioning is the process of ensuring potential and current customers perceive your company in the intended way. This approach encourages open communication throughout the business and allows tracking of performance throughout the year. Similarly, even if being market-driven is a corporate strategy, you’re not market-driven if you don’t take the time to gain an in-depth understanding of the market and your customers. This is not incorrect but I feel much market research today does not get to the heart of ‘understanding ‘. New changes are actually opportunities for marketers but marketers should be updated with them only then they can direct and utilize them according to company’s marketing strategy in company benefit. So for the purpose of profitable relationships a company needs to build relationship with other company departments, suppliers, marketing intermediaries, customers, competitors and various publics. The tobacco industry, for example, has had to learn to live with a federal ban on TV and radio advertising. Talent coordinators posted red flags next to the names of Janet Jackson (of the now-famous malfunctioning costume) and other performers. At other times (like today), the news makes them nervous—we’re in a recession, industrial production is down, jobless claims are rising,consumer confidence has plummeted, credit is hard to get. For one thing, you’ll have to pay particular attention to fluctuations in exchange rates, because changes will affect both your sales and your profits. Coke and Pepsi, for instance, are brand competitors who have engaged in the so-called “cola wars” for decades. What if Nantucket Nectars, which markets an ice tea with caffeine, introduced an ice tea drink with mega amounts of caffeine? A lot of people wouldn’t—they’re the wrong style, the wrong fit, the wrong material, the wrong color, or just plain wrong.
More people place more importance on balancing their work lives with the rest of their lives, and fewer people are willing to sacrifice their health to the demands of hectic work schedules.
These values and attitudes have a profound effect on both the products they want and the marketing efforts designed to sell products to them. If you have a broad customer base, you might need to split your customers into groups (segmentation).
This is the era of survival of the fittest if a company will not adopt the modern changes of global marketing environment that company will soon loose sales and move towards decline. More recently, many companies in the food industry have expressed unhappiness over regulations requiring the labeling of trans-fat content. The telemarketing industry fired workers and scrambled to reinvent its entire business model.
Naturally, business thrives when the economy is growing, employment is full, and prices are stable. Where would we be without the cell phone, digital cameras, instant messaging, personal digital assistants, LASIK surgery, and global positioning systems? Now put yourself in the place of a marketer for a clothing company that targets teenagers and young adults.
At this point in their lives, most are at their peak earning power and affluent enough to make marketers stand up and take notice.
Try to reach them through TV ads and they’ll channel-surf right past them or hit their TiVo remotes.Anthony Bianco, “The Vanishing Mass Market,” Business Week, July 12, 2004, 61–68. And this is also confirmed that market cap of several Indian service companies are now approaching the size of General Motors. The broadcasting industry is increasingly concerned about fines being imposed by the Federal Communications Commission for offenses against “standards of decency.” The loudest outcry probably came from telemarketers in response to the establishment of “do-not-call” registries. What if Nantucket Nectars launched a marketing campaign promoting the health benefits of fruit drinks over soda? As women spend more time at work, the traditional duties of the “homemaker” have shifted to day-care centers, nannies, house-cleaning services, and (for those who can afford them) child chauffeurs, birthday-party coordinators, and even family-photo assemblers.Sandra Tsing Loh, “Nannyhood and Apple Pie,” The Atlantic, October 1, 2003, 122–23. To design effective strategies, marketers need to find the answers that consumers give to questions such as these.
Once you let colleges know that you were interested, admissions departments likely sent you tons of information. In a most recent survey, Business Week explained the ways that most successful companies (market leaders) are adapting and staying ahead of the competition. On the other hand, when the economy is slowing (or stalled) and unemployment is rising, people have less money to spend, and the marketer’s job is harder. In summer 2004, both companies came out with nearly identical new colas boasting half the sugar, half the calories, and half the carbohydrates of regular colas.
As we said at the outset of this chapter, the key to successful marketing is meeting the needs of customers.
The number of gyms has mushroomed, the selection of home office furniture has expanded, and McDonald’s has bowed to the wishes of the health-conscious by eliminating its “super-size” option. They’re still a major marketing force, but their needs have changed: they’re now the target market for Botox, pharmaceutical products, knee surgery, financial investments, cruises, vacation homes, and retirement communities.
In other words, they try to improve their understanding of consumer behaviorDecision process that individuals go through when purchasing or using products.—the decision process that individuals go through when purchasing or using products. Now all successful and growing companies need to successful marketing strategy and adapt all changes (new trends) in marketing environment in order for their rapid growth and smooth business activities. Advertisers keep trying, because Generation Y is big enough to wreck a brand by giving it a cold shoulder. In the next section, we’ll look at the process that buyers go through in choosing one product over another. Both companies targeted cola drinkers who want the flavor of a regular soda but fewer calories.

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Comments to «Marketing environment and environmental scanning»

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  4. EYNAR Says:
    Where Act-On starts. editing.??Continuity is not the most critical aspect reside film maker has changed.