market environment(3)

8/7/2019 market environment(3)

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Scanning of MarketEnvironment

Reported by: Jesse-Ann CalzadoraMaria Feliza Parias


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Market Environment

is a marketing term and refers to all of theforces outside of marketing that affectmarketing managements ability to buildand maintain successful relationships withtarget customers.


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Th ree key perspectives on t h e marketingenvironment

- 'internal environment '.- 'micro -environment, ' - 'macro -environment '


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Market Environment C h art

SWOT


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B . Microenvironment

A ll forces that are close to the company and affectits ability to serve its customers.

It includes:

CompanyS uppliersMarketing IntermediariesCustomer MarketsCompetitorsPublics


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Company

A ll departments

S uch as:

- Management- Finance- A ccounting- Research and Development- Purchasing- O perations- Etc.


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S uppliers

- of a company are also an important aspectof the microenvironment because even theslightest delay in receiving supplies canresult in customer dissatisfaction.


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Market Intermediaries

- Resellers - are those that hold and sell the companysproduct.

- Physical Distribution Firms -are places such aswarehouses that store and transport the companysproduct from its origin to its destination.

- Marketing S ervice A gencies - are companies that offer services such as conducting marketing research,advertising, and consulting.

- Financial Intermediaries


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Customer Market

- consumer markets - who buy goods and services for their own personal use or use in their household.

- business markets - include those that buy goods andservices for use in producing their own products to sell.

- reseller markets - which includes businesses that purchasegoods to resell as is for a profit.

- government market - consists of government agencies thatbuy goods to produce public services or transfer goods toothers who need them.

- International markets - include buyers in other countries andincludes customers from the previous categories.


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Competitors

- also a factor in the microenvironment andinclude companies with similar offerings for

goods and services.

- T o remain competitive a company mustconsider who their biggest competitors arewhile considering its own size and position inthe industry.


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Publics

- T he final aspect of the microenvironment is publics, which is any group thathas an interest in or impact on the organizations ability to meet its goals.

- For example:

- Financial publics - can hinder a companys ability to obtain fundsaffecting the level of credit a company has.

- Media publics - include newspapers and magazines that can publisharticles of interest regarding the company and editorials that may influencecustomers opinions.

- Government publics - can affect the company by passing legislation andlaws that put restrictions on the companys actions.

- Citizen -action publics - include environmental groups and minority groupsand can question the actions of a company and put them in the public

spotlight.


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Publics

- Local publics - are neighborhood and communityorganizations and will also question a companys impact onthe local area and the level of responsibility of their actions.

- General public - can greatly affect the company as anychange in their attitude, whether positive or negative, cancause sales to go up or down because the general public isoften the companys customer base.

- Internal publics - include all those who are employed withinthe company and deal with the organization andconstruction of the companys product.


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Demography

- refers to studying human populations interms of size, density, location, age,gender, race, and occupation.

- Each classification has differentcharacteristics and causes they findimportant. T his can be beneficial to a

marketer as they can decide who their product would benefit most and tailor their marketing plan to attract that segment.


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Economy

- T his refers to the purchasing power of potential customers and the ways in whichpeople spend their money. W ithin this areaare two different economies, subsistenceand industrialized.

- S ubsistence economies are based more in

agriculture and consume their ownindustrial output. Industrial economies havemarkets that are diverse and carry manydifferent types of goods.


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Natural Environment Forces

- T his includes the natural resources that acompany uses as inputs and affects their

marketing activities.

- T he concern in this area is the increasedpollution, shortages of raw materials andincreased governmental intervention.


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T echnological Environment

- is perhaps one of the fastest changingfactors in the macroenvironment.

- T his includes all developments fromantibiotics and surgery to nuclear missilesand chemical weapons to automobiles andcredit cards.


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Culture

- is the cultural environment, which consistsof institutions and basic values and beliefs

of a group of people.


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SWOT A N A LYS IS

- (S trength, W eaknesses, O pportunities & T hreats)

- It is a first stage of planning and helps marketers tofocus on key issues.

- S wot analysis is a strategic planning method usedto evaluate S trength, W eaknesses, O pportunitiesand T hreats involved in a project or in a businessventure.

- S wot was introduced by A lbert Humphrey.


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SWOT A nalysis Chart

BENEFICIAL HARMFUL

INTERNALENVIRONMENT

STRENGTH WEAKNESSES

EXTERNALENVIRONMENT

OPPORTUNITIES THREATS


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2 Factors of SWOT A nalysis

Internal environment- things that we can control.- consist of strength and weaknesses

External environment

- things that we cannot control.- consist of opportunities and threats.


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K ey Questions

ST REN GT HW hat advantages do you or your company have?W hat do you better than anyone else?

W hat your people in your market see your strength?

W E AK NE SS ES

W hat could you improve?W hat do you avoid?W hat factors lose your sales?W hat do outside see as your weaknesses?


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K ey Questions

O PP O RTU NIT IESW hat interesting trend you whereof?W hat opportunity might arise from change intechnology, government, policy, economic andsocial?

T HRE A TSW hat obstacles you and your company fail?W hat do your competition doing that you shouldworried about?


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SWOT M A T RIX

matching and converting

S W

O S -O W -O

T S -T W -T

S -O strategies - pursue opportunities that are a good fit to the companysstrength. Finding competitive advantage of the company.W -O strategies overcome weaknesses to pursue opportunities.S -T strategies identify ways that the firm can use its strengths to reduce itsvulnerability to external threats.W -T strategies establish a defensive plan to prevent the firms weaknesses

from making high susceptible to external threats.


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S teps in doing SWOT A nalysis

*W hen you making list be precise and prioritize tothe most important points.

1. List all strength and weaknesses that exist now.B e realistic

2 . List all opportunities and threats that exist in thefuture.

3. Review your SWOT analysis in creating anaction to address each 4 areas.


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Example of SWOT A nalysis

EX. O F SWOT A N A LYS ISW A LM A RT

Internal Environment A . S trength

A 1.Management - are committed in providing state -of -the -arttraining resources and development to help their employeesin achieving their career objective.

- very strong community based initiative. A2 .Marketing - Low Prices

- one stop shop A 3. Finance - W almart is respectable in financialposition so they attract and retain employees.


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B . W eaknessesB 1. Management societal demand for equity. Fewfemale are in the top management.

B2 . Finance they have asset that they are notused at this point in time.

- collection of doubtful accounts.

B 3. Production/ S ervice slow check out service.


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External Environment

C. O pportunitiesC1.Economic availability of free trade zone.

C2 . S ocial, Cultural and Environmental anopportunity facing the industry is thatcustomer want ease of shopping.

C3. Political, Legal and Government anopportunity facing the industry is that A sianmarket virtually untapped by the retail world.

C4. T echnological an opportunity facing theindustry is that internet is growing


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D. T hreatsD1.Economic nowadays the economic growth is slow.

D2 . S ocial, Cultural and Environmental a threat is acustomer theft / employees theft.

D3. Political, Legal and Government A threat is theChinese Regulation. China does not want to openany foreign business in their country.

D4. T echnological a threat is that because of technological advances product that they sell become

obsolete.


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ST R A T EGIES :

S -O Expansion of business globally.

W -O Create project planning for the unused assets A dditional employees assign to counter department for customer convenience.

S -T B uy CC TV camera to avoid or minimize theft.

W -T O ffer commissions or bonus scheme toemployees.


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T hank you

Documents

market environment(3)