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A marketer needs to blend the activity with business demands, strengths and weaknesses plus to know who is target audience, what are their needs and all these information can only be achieved once marketer knows business environment
If he wants to develop his business without loss, if he wants to do selective business then he should know about market environment and feasibility
Effective marketing demands the identification and understanding of target markets. These are highly dynamic: expanding and contracting, shifting in new directions and emerging suddenly from where no market previously existed. It follows that firms need to research carefully the drivers of demand in the business environment. This may involve secondary research using STEP model (analysis of published data) or primary research where purpose-designed surveys explore consumer behaviour and motivation.
· Social and demographic changes will affect the sales of many products for example through shifts in the age structure of the population and changes in lifestyles an fashion.
· New technologies may open up some markets while closing down others (eg the changeover from video cassettes to DVDs).
· Economic trends can sharply affect spending on luxuries of any kind positively in a boom, negatively in a recession.
· Political change affects levels of public spending, the taxation structure and consumer protection law.
Scanning and interpreting all these areas of change requires both knowledge and experience and can be a key source of competitive advantage. Much also depends on anticipating the reactions of competitors. Interpreting and responding to change ahead of the competition can yield high gains in terms of both profit margins and sales.
Because being a marketer if u cant interpret the environment u will not execute or u will not apply what u wana seek properly.
Marketing environment study is important for the success of organizations, not just marketing man1. Study the environment leads to identify marketing opportunities and markets the most successful and the most competitive markets Vtaktt for companies to invest at least competitive markets in the future and the most in terms of consumers' purchasing power2. enables companies to study consumer behavior in each market and see the change in the tastes and desires of product planning3. The companies were able to study the behavior of competitors and planning to cope with their plans and pre-empt their plans4. enables companies to study the market and planning programs for advertising, promotion and distribution5. study environment enables companies to see opportunities and threats and planning to confront them6. study environment enables companies to see the rapid changes of our time, whether technological or political, economic or cultural, social or legal and planning
Than you for your invitation. ...... To get the correct information and the results are correct
Business organizations do not operate in isolation from the surrounding environmental influences such as culture, social, economic and political, legislative and legal status of the climate and even the weather and even geographical terrain, so that these organizations derive survival of these surroundings, as well as the distribution of their products on the environment
The economic environment consists of external factors in a business' market and the broader economy that can influence a business. You can divide the economic environment into the microeconomic environment, which affects business decision making - such as individual actions of firms and consumers - and the macroeconomic environment, which affects an entire economy and all of its participants. Many economic factors act as external constraints on your business, which means that you have little, if any, control over them. Let's take a look at both of these broad factors in more detail.
Macroeconomic influences are broad economic factors that either directly or indirectly affect the entire economy and all of its participants, including your business. These factors include such things as:
Microeconomic factors influence how your business will make decisions. Unlike macroeconomic factors, these factors are far less broad in scope and do not necessarily affect the entire economy as a whole. Microeconomic factors influencing a business include:
Why Is the Economic Environment Important?
The economic environment of business will play a pivotal role in determining the success or failure of a business.
Let's first consider some macroeconomic factors. If interest rates are too high, the cost of borrowing may not permit a business to expand. On the other hand, if unemployment rate is high, businesses can obtain labor at cheaper costs. However, if unemployment is too high, this may result in a recession and less discretionary consumer spending resulting in insufficient sales to keep the business going. Tax rates will take a chunk of your income and currency exchange rates can either help or hurt the exporting of your products to specific foreign markets.
to know market and tricks to growth
A. Internal environment
Internal environment includes all those factors which influence business and which are present within the business itself. These factors are usually under the control of business. The study of internal factors is really important for the study of internal environment. These factors are:
(i) Objectives of Business, (ii) Policies of Business, (iii) Production Capacity, (iv) Production Methods, (v) Management Information System, (vi) Participation in Management, (vii) Composition of Board of Directors, (viii) Managerial Attitude, (ix) Organisational Structure, (x) Features of Human Resource, etc.
Note:
All the above factors do influence the decisions of business, but since all these factors are usually under the control of business, they cannot be wholly included in the business environment.
B. External Environment
External environment includes all those factors which influence business and exist outside the business. Business has no control over these factors. The information about these factors is important for the study of the external environment.
Some of these factors are those with which a particular company has very close relationship. However, there are some other factors which influence the entire business community.
Micro environment means that environment which includes those factors with which business is closely related. These factors influence every industrial unit differently. These factors are as under:
(i) Customers (ii) Suppliers (iii) Competitors (iv) Public (v) Marketing Intermediaries.
(i) Customers:
Customers of an industrial unit can be of different types. They include household, government, industry, commercial enterprises, etc. The number of different types of customers highly influences a firm.
For example, suppose a firm supplies goods only to the government. It means that firm has only one customer. If because of some reason their relations get soured, the supply of goods will stop and in that case the closure of that firm is certain.
This clearly indicates that the customers do influence business. Therefore, a firm should make efforts to have different kinds of customers,
(ii) Suppliers:
Like the customers, the suppliers also influence business. If a business has only one supplier and he gets annoyed because of some reason, the supply of goods can be stopped and the very existence of the business can be threatened or endangered. Hence, efforts should be made to have various suppliers.
(iii) Competitors:
The competing firms can influence business in a number of ways. They can do so by bringing new and cheap products in the market, by launching some sale promotion scheme or other similar methods.
(iv) Public:
Public has different constituents like the local public, press or media, etc. The attitude or behaviour of these constituents can affect business units. For example, the local population can oppose some established firm whose business is excessively noisy.
Similarly, if the media gives some favourable report about a particular company the price of its share can register an increase on this count.
(v) Marketing Intermediaries:
The marketing intermediaries play a significant role in developing any business unit. They are those persons who reduce the distance between the producers and agents.
For example, a company sells its goods with the help of agents and if because of some reason all the agents get annoyed with the company and refuse to sell its goods, there can be a crisis for the company.
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