Essay On Evaluating Opportunities In The Changing Market Environment

Evaluating Opportunities In The Changing Market Environment

A large number of forces shape the marketing environment. They fall into either

Direct market environment

External market environment

The direct environment of any generic market or product market includes customers, the business and competitors. The external market environment is broader. The variables of the external market environment fall into four major categories:

Economic environment

Technological environment

Political and legal environment

Cultural and social environment

OBJECTIVES SHOULD SET FIRMS COURSE

The following three objectives provide a useful starting point for setting a firm’s objectives or principles. They should be sought together because in long run a failure in one of these areas could lead to a failure in the entire business. A business should:

Engage in activities that perform a social and economic useful function.

Develop an organization such that the business can be carried on and it can implement its strategies.

Earn enough profit so as to survive.

SOCIALLY USEFUL:

A business cannot function without the approval of a consumer. The company should be useful to the society. A company can be wiped out overnight by consumers’ negative response. Thus various companies advertise their products along with a social cause. This is known as cause marketing which helps the organization connects better with the consumer as well as promote a social idea. Example Procter and Gamble promotes Pampers diaper through its 1 pack= 1 vaccine for UNICEF campaign.

INNOVATION:

It is the responsibility of businesses to be dynamic so as to provide consumer with better products and offering to meet new needs. Competition encourages innovation. This not helps the or...

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...untry but the economies of the world are linked and interconnected.

Economic conditions change rapidly whose effects are far reaching and hence require changes in marketing strategy. If a country or a region goes through a rapid decline a consumers spending pattern also changes. Interest rates and inflation affect buying. Interest rates directly affect the economy or situation. This is particularly important for business markets. Interest rates usually increase during periods of inflation. The economies of the world are connected and the economy of one country affects another. International trade is increasing and thus the change in the economy of one country affects the trade and commerce in another country. A marketing manager must watch the economic environment carefully. In contrast to the social and cultural environment economic conditions change continuously.