Demographic Factors: Demographic factors are related to population. Conduct audience sentiment monitoring and mapping so you understand the zeitgeist before you launch. The general environment includes everything and consists of the following factors: (a) Physical structure (b) Social structure (c) Ecological structure (d) Legal structure (e) Cultural (religious) structure (f) Political structure (g) Economic structure (h) Psychological structure (i) International structure The macro environment comprises a range of external factorsdemographic, physical, natural, economic, technological, political, legal, and socio-cultural conditions. "A company's marketing environment consists of the actors and forces outside of marketing that affect marketing management ability to build and maintain successful relationships with target customers". However, it is often the overwhelming choice of potential macro-environment factors and trends to consider . The interaction among all these elements makes the marketing environment complex in nature. The marketing environment of a company comprises both actors and forces outside marketing that affect marketer's ability to develop and maintain . India has an astonishing demographic dividend where more than 50% of its population is below the age of 25 and more than 65% below the age of 35. Shareholders and owners. These forces make up a company's external marketing environment, which, as you can see in Figure 9.14 "The Marketing Environment", we can divide into five sets of factors: Political and regulatory Economic Competitive Technological Social and cultural Figure 9.14 The Marketing Environment So there is need of a marketer to consider all these factors to plan a successful market strategy. Environmental scanning is the act of monitoring ______. Demographics Demographics refer to the aspects of a target audience for any product or service. Types of Marketing Environment 3. To spot trends and other signals that conditions may be in flux, marketers must continually monitor the environment in which their companies operate. Social and Cultural Influences- 1. Technological Influences 4. There are many factors which affect the performance of a business. Social class: Social-class bands such as wealthy, middle, and lower classes. For a firm, the only option is to accept and respect these factors, and adopt and adjust with them. However, we must understand that not all the industries are affected negatively with the changes in economy. Management must respond favorably to such environment in order to exploit the emerging opportunities. Sociocultural factors are customs, lifestyles and values that characterize a society. The detailed description of Macro factors is given below: Economic Factors Local, national and global economies are perhaps the greatest environmental factor to be dealt with for any small business. This includes company's suppliers, distributors, customers and competitors. The effect of advancement in technology can be negative as well as positive. No external . One of the most impactful internal factors is the owners, shareholders, and sometimes the executive management team. These are also called outside organizational factors affect marketing strategy and have great impact on an organizational ability to serve its potential customers. Magazine. Inflation. The market environment consists of both the macroenvironment and the microenvironment. Most industries have regulations in place for trade, taxes, quality, and labor. Subsidies. Elements of Marketing Environment. Internal Factor 2. These factors affect the trends in Gross Domestic Product (GDP), inflation rates, spending levels, and monetary and fiscal schemes. For example, keep in mind that Americans feel significantly more polarized since the outbreak . The social factor of the environment is known as demographics the people that are described based on their ethnicity, age . The Environmental Factors may be classified as: 1. Technological Technological factors are also macro environment factors. While the differences between our cultural background in the United States and those . The economic environment consists of factors that affect consumer purchasing power and spending patterns and is basically about the level of demand in the ec onomy and is the most visible aspect . Marketing management is the art to advertise the products and services ultimately spreading the words in such a way that the customers are accustomed to the products and they are convinced to buy the products. The market environment consists of both the macroenvironment and the microenvironment. Political-legal environment: External environment identifies factors that are not in the direct influence or control of the organization. But, diligent decision-making and strategies can reduce the impact on the economy. Only write about those external factors that directly impact your product or service (for example, if the trend of growing ethnic markets does not impact the marketing of your product or service, then do not include. These factors are beyond the control of a company. This paper will discuss the five environmental factors that influence global and domestic marketing decisions that organizations must make. The natural environment consists of natural resources that are essential input for marketers and are also affected by marketing activities. 7.7.2 Factors in the marketing environment . Capabilities and core competencies. Strength are those factors which brings positive effect to company. The main factors to consider when analyzing the internal environment in marketing are: Resources. In order to take advantage of the new opportunities, management must react . PEST stands for political, economic, social and technological. 2. Let discuss each in detail how they affect business strategy. Meaning of Marketing Environment 2. Marketing mix. Marketing environmental analysis includes all the factors outside marketing that affect the ability of a business to . The internal environment plays an effective role in creating, communicating and delivering market offerings by firm no matter whether they are tangible or intangible. Macro environmental factors include social, economic, political and legal influences, together with demography and technological forces. These are the following: 1. Economic Factors: The organization production and decision making process of customer also affected by the economic environment. These factors constitute macro-marketing environment. The internal marketing environment consists of all factors that are internal to the organisation like: Company`s mission, vision and business objectives Company Culture Company image and Goodwill Marketing Strategy Technical Capacity Managerial Skills and Abilities Structure and Processes Finance and Sales force Production and Research At the first level, marketing has to integrate with other . also affect a company's marketing strategy. Economic factors include inflation rate, currency exchange rate etc. There are two kinds of external marketing environments - micro and macro. The marketing environment is a combination of both internal and external factors that affect marketing activities. Socially responsible marketing is that business firms should take the lead in eliminating socially harmful products. Marketers who intend to market their products overseas may be very sensitive to foreign cultures. Business generally figures out and group their internal environment into their strengths and weaknesses. The marketing environment offers both opportunities and threats. Environmental analysis in marketing is a strategic tool used by marketers and business developers to identify the internal & external, controllable and uncontrollable factors that influence the performance of the organization. The combination of these forces is commonly referred to as Marketing Environment. The marketer needs to consider these political and legal factors while planning marketing plans and programs such as health & safety law, climate law, etc. Demographic Environment Economic environment Natural Forces Technological Forces Political Forces Social & Cultural Forces Let's look at each of the 6 factors of PESTLE/PESTEL now: POLITICAL The political situation of the region/country you are marketing to needs to be considered. Internal factors are controllable factors that comes under the control of business. The following are the different factors that form an economic environment. There are a number of common approaches for how the external factors, which describe the macro environment, can be identified and examined. These comprise the socio-cultural, legal, economic, political, and technological factors. The external factors are significant forces. There are three key elements to the marketing environment which are the internal environment, the micro environment and the macro environment. It is made up of six components: demographic, economic, physical, technological, political-legal, and social-cultural environment. Demographic Factors Demographic factors include structure of the population, division according to sex, age group, income group, material status, and profession, etc. The marketing environment is divided into tow different environments. The environmental factors in marketing include political, economic, social, technological, environmental and legal factors (PESTEL) It is defined as a complex sum total of knowledge, belief, traditions, customs, art, moral law or any other habit acquired by people as members of society These factors must be closely paid attention to and . Three levels of the environment are - [a] Micro (internal) environment - small forces within the company that affect its ability to serve its . According to Philip Kotler, "A company's marketing environment consists of the factors and forces outside marketing that affect management's ability to build and maintain successful relationships with target customers". Cultural Factors 3. Issues are often forerunners of trend breaks. Interest Rates. Complexity: It implies that a marketing environment include number of factors, conditions, and influences. Cultural Influences: Culture represents the living style of the people of a specific area, the buying behavior, the taste, the class of people to which they belong; the psychographics and the aesthetics of the population. 1) Micro Environment: It consist of factors lose to the company that have a direct impact on the organization strategy. Social and cultural factors are important to consider while creating and implementing a marketing strategy of a company. People's beliefs, values and interests can have a significant effect on how a business markets their products and services. These and other government policies make up the political external factors that affect you and your business. Common demographic variables to consider for global and domestic marketing purposes include the following: Age: Age bands, such as 18-24, 25-34, etc., are great predictors of interest in some types of products. These factors include: 1. 5. Income distribution. Demographic environment Demography is the study of populations. It includes the company itself, its suppliers, marketing intermediaries, customer markets, competitors, and publics.Refers to the internal . Factors Affecting Marketing Environment. Stages of development, technological development, rate of change of technology, research and development. The external marketing environment consists of social, demographic, economic, technological . Marketing Environment. These are sometimes referred to as the PESTLE factors and are discussed in more detail in PESTLE analysis. Few important factors and consequences of operating in the technological environment are as follows: Sources of technology like external sources, foreign sources, company sources, cost of technology acquisition, transfer of technology. Current strategy and success. Gross Domestic Products (GDP). Economic Environment 2. These factors include those related to the Environmental Factors of Marketing. MARKETING MIX: This can be defined as the combination of variables offered to the market at a particular time. The internal and external factors that affect firms and may help or hurt a product in the marketplace. Employee skills and mix. The long-term survival of any organisation is dependent on how well the business relates to its environment and explores the future versus the past (Zyman, 1999: 53). The social factors of the marketing environment include the culture and lifestyles of consumers. Macro-environment consists of demographic environment, economic environment, natural factors, technological factors, political factors and cultural factors. Marketing environment is composed of internal factors and external factors which determine the market management skills of business organization. Neither businesses nor governments can entirely control external factors. The various factors of marketing environment such as political influences, advancements in the realms of technology, increase in the market share of the competitor's brands, and change in the government rules and policies have an effect on the tastes and preferences of the customers. The market environment is a marketing term and refers to factors and forces that affect a firm's ability to build and maintain successful relationships with customers. Marketing Environment is the combination of external and internal factors and forces that affect the company's ability to establish a relationship and serve its customers. sociocultural. Here are a few important entities that make up an organization's microenvironment: Partners: This includes units and separate entities such as market research organization, advertising agencies, brokers, transportation companies etc. 7 elements of macro marketing environments Here are the seven main components of a macro marketing environment: 1. As we know, PESTLE analysis is a helpful tool for summarizing the situational analysis of the macro-environment.
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