The Dynamic Marketing Environment

Environment: 

The surrounding of a system is called Environment.

Environmental Monitoring:


Also called environmental scanning.
Means to gather information regarding external environment.

There are two types of external environment

Macro 
Influences (they effect all firm) e.g. economic conditions.
Micro
Influences (they effect a particular firm) e.g. suppliers

Successful marketing depends on company ability to manage its marketing program within its environment.


Demographic:
Means the study of population or characteristics of population.
Because market comprises of people.
Segmentation on the basis of demography.
After selecting specific market or group then execute marketing mix
E.g. making marketing program keeping in mind the population growth rate.



Economic conditions:
Economy of a country and economy of a person.
People must have money to spend.
Marketing program can effected by the projected economic conditions or business cycle.



Stages of Business Cycle or Economy:
Prosperity, Recession, Depression, and Recovery.



Prosperity : 
A period of economic growth.
In this stage companies make new products and search new markets.



Recession or Depression :
A period of retrenchment(reduction in expenses) for consumer and companies.
E.g. people cut of eating and entertainment out side because of some situations e.g. scared situation.


Recovery:
A period when economy is moving from recession to prosperity.
When unemployment decreases and disposable income increases then companies again gets activated.
Inflation, Deflation and interest rates also effect consumers and companies.


Competition: 
Different competition basis, brand competition, price competition, quality competition, services competition etc.
Companies must check the competitive environment to design marketing plan.
Competition on the basis of substitute products.
Companies keep their eyes on competitors activities by their marketers.


Social and Cultural Forces:
Changing life styles, fashion, values and beliefs of the customer.
Concern about Natural Environment
To be careful abut different types of pollutions.
Concern about holes in the Ozone layer, acid rain, disposals, destruction of forests.
It is the duty of companies to procure the environment.
E.g. Honda and Toyota( autos with gasoline engine and electric motor.
In China cycles are used.
Companies will have to be careful about the social responsibilities.
Cultural requirements.


Political and Legal Forces:
Monitory and fiscal policies e.g. Tax Legislation, money supply.
Social Legislation and Regulations e.g. Antipollution Laws.
Govt relations with industries.
Laws regarding Marketing.


Technology: 
Old communication ways v/s new communication ways.
Technology really changes the life style of the consumers e.g. airplanes, television, computers, antibiotics, lasers, video games, robots.
Marketing with new technology.
Telemarketing
Direct marketing.
Companies will have to adopt new technology to compete in this world.


The Market
Suppliers of raw material and goods etc.
On time supplies into the market
Fast distribution system.



Marketing Intermediaries
These are the firms who assist in the flow of products.
These are the part of channels of distribution.
Middleman and Facilitating Organizations e.g. Transportation, Warehousing, Financing.
All the intermediaries make a value Chain