When formulating strategy, the interaction of the quadrants in the SWOT profile becomes important. For example, the strengths can be leveraged to pursue opportunities and to avoid threats, and managers can be alerted to weaknesses that might need to be overcome in order to successfully pursue opportunities.
Materials Markets The internal environment is under the control of the marketer and can be changed with the changing external environment.
Nevertheless, the internal marketing environment is as important for the business as the external marketing environment. This environment includes the sales department, marketing department, the manufacturing unit, the human resource department, etc.
External Environment The external environment constitutes factors and forces which are external to the business and on which the marketer has little or no control. The external environment is of two types: Micro Environment The micro component of the external environment is also known as the task environment.
It comprises of external forces and factors that are directly related to the business. Market intermediaries include parties involved in distributing the product or service of the organisation.
Macro Environment The macro component of the marketing environment is also known as the broad environment. The macro environment can be divided into 6 parts.
Demographic Environment The demographic environment is made up of the people who constitute the market. These factors include the GDP, GNP, interest rates, inflation, income distribution, government funding and subsidies, and other major economic variables.
Physical Environment The physical environment includes the natural environment in which the business operates. This includes the climatic conditions, environmental change, accessibility to water and raw materials, natural disasters, pollution etc.
Technological Environment The technological environment constitutes innovation, research and development in technology, technological alternatives, innovation inducements also technological barriers to smooth operation.
Technology is one of the biggest sources of threats and opportunities for the organisation and it is very dynamic. Social-Cultural Environment The social-cultural aspect of the macro environment is made up of the lifestyle, values, culture, prejudice and beliefs of the people.
This differs in different regions. Importance of Marketing Environment Every business, no matter how big or small, operates within the marketing environment. The business environment is one of the most dynamic aspects of the business. In order to operate and stay in the market for long, one has to understand and analyze the marketing environment and its components properly.
Essential for planning An understanding of the external and internal environment is essential for planning for the future.
A marketer needs to be fully aware of the current scenario, dynamism, and future predictions of the marketing environment if he wants his plans to succeed. Understanding Customers A thorough knowledge of the marketing environment helps marketers acknowledge and predict what the customer actually wants.
In-depth analysis of the marketing environment reduces and even removes the noise between the marketer and customers and helps the marketer to understand the consumer behaviour better. Tapping Trends Breaking into new markets and capitalizing on new trends requires a lot of insight about the marketing environment.
The marketer needs to research about every aspect of the environment to create a foolproof plan. Threats and Opportunities A sound knowledge of the market environment often gives a first mover advantage to the marketer as he makes sure that his business is safe from the future threats and taps the future opportunities.
Understanding the Competitors Every niche has different players fighting for the same spot. A better understanding of the marketing environment allows the marketer to understand more about the competitions and about what advantages do the competitors have over his business and vice versa.
Did we miss something? Written by Aashish Pahwa A marketer, a dreamer, a traveler and a philomath.A marketing environmental analysis helps a business understand external forces that can affect it.
The environment, or external forces, are often factors that a business cannot control, yet it is important to be aware of environmental concerns when preparing a marketing plan or introducing a new product to the market.
The iMBA program at the University of Illinois is built around 7 key specializations each dedicated to teaching you a critical business skill. SWOT analysis is a straightforward model that analyzes an organization's strengths, weaknesses, opportunities and threats to create the foundation of a marketing strategy.
Analysis for Marketing Planning, 7/e by Lehmann and Winer focuses on the analysis needed for sound Marketing decisions and is structured around the core marketing document--the Marketing Plan.
Understanding the success of the iPod and the iPhone requires an appreciation of the marketing strategy of Apple. A PESTLE analysis, sometimes referred to as a PEST Analysis, is a useful tool for understanding the industry situation as a whole, and is often used in conjunction with a SWOT analysis to assess the situation of an individual business..
A PESTLE Analysis is one of the most important frameworks of macro-environmental analysis, a framework which is a key part of advanced strategic management.