Marketing Environment For Successful Business
The marketing environment plays an important role in it observes the relevant events & trends in the environment. It discerns which events are favorable from the standpoint of the firm & which are unfavorable. The marketing environment finds out the opportunities and hidden threats in the environment.
It accesses the scope of various opportunities & shows those that can favorably impact the business & projects how the environments of each factor will be useful to the business from its future point of view.
1 Demographic Environment
Since business depends on the consumer so it is very important to study environment analysis. As a matter of fact several factors like population size, growth, age, gender, religion, and literacy level need to be studied.
2) Socio-Cultural Environment
The socio-cultural environment is another important component of the mega-environment. Culture, traditions beliefs, values & lifestyle of the people in a given society constitute the sociocultural environment
Culture- It is a combined result of factors like religion, language, and education. In any society, some cultural values are deep-rooted and these values don’t change easily
Here Social class is an important concept. Any society is composed of different social classes & it is determined by income, location of residence, etc
3) Economic Environment
It is a vital component of the economy it considers the following points
- General Economy
- Economic Conditions of different segments of the population their disposable income, purchasing power, etc
- The rate of growth of the economy rate of each sector of the economy like
a) Agriculture
b) Industry
c) Services
d) Consumer goods
e) Imports
4) Political Environment
This is a major component of the environment for a business firm. It is the political environment whether one company should sustain itself in an economy or not. It consists of the government adopted by the country is a prior element of social & religious organizations media &pressure groups & lobbies of various kinds are also part of the political environment
For Eg: The reliance fresh concept was not succeeded in U.P, M.P because there was strong opposition from political parties
5) Technological Environment
Today technology is a major force that industry and business have to cope with. For a business firm technology not only affects the final product but also its rm, processes & operation as well as its customer segment. Due to the rapid change in technology, many innovative products are available on the market today. Every firm properly analyses technological changes taking place in its industry at the international level.
For eg, the IT & Telecom industries are the best examples
6) Legal Environment
Businesses have to operate within the framework of the prevailing legal environment. They have to understand the implications of all the legal provisions related to their business.
Business legislation can be classified into the following.
a) Corporate affairs.
c) Employee protection.
d) Regulations on product, prices& distribution.
e) Control of trade practices.
Multinational companies that operate across several countries face particularly tough problems in this regard. They have to access the legal parameters prevailing in several countries and make their choice of entry in that.
7) Natural Environment
Business enterprises are greatly affected by the like natural resources & Ecology
Natural Resources: Business firm depends on natural resources. Raw material is one of the major parts of these resources so the firm has to continuously check its availability
Ecology: Firms are also concerned with ecology like pollution, protection of wildlife & ocean wealth. The business firm will have to know the nature & its dimensions.
Explain the concept of Core Elements Of Marketing