Q. Explain various factors in marketing environment & tell about the need to analyze the marketing environment?
Ans.: Purpose of marketing environment analysis are following:-
(1)To get know where the environment is leading, to view and size up the relevant events and trends in the environment circumstance.
(2)Strategic response to environment is promising only with correct environment analysis.
(3)To assess the scope of several chances & select those that can favorably impact the business.
(4)To help in securing the right fit among the environment and the business unit which is the crux of marketing?
The marketing environment consists of the following factors:-
- Demographics: It is major element to be studied in environment analysis. sevral factors relating to people, like size, age distribution, growth rate and religious composition, require to be studied. Aspects likewise composition of, household patterns, workforce, regional characteristics, population shifts etc. also require to be studied as they are a part of demographic environment.
- Socio-cultural Environment: It is another significant component of the environment. Traditions, Culture, values beliefs, & lifestyles of the people in a given society give impact on the socio-cultural environment.
- Culture: It is the joint result of factors like language, religion education & upbringing. Meaningful, information on the lifestyles, consumption habits and buying behavior can be getting through a survey of socio-cultural environment. Cultural shifts carry with them marketing opportunities and threats.
- Social Class: It is one essential concept in socio cultural environment. A social class is determined by, occupation, income, location, of residence etc. Every class has its own standards with respect to behaviors, lifestyle etc., they are called as class norms or class values. These particular values have a strong bearing on the buying behavior and consumption pattern.
- Economic Environment: The factors to be notice under economic environment are :-
- common Economic conditions
- Rate of development of the economy, rate of growth in each sector of the economy
- Economic conditions of different segments of the population, their disposable purchasing power ,income, class etc
- interest rates and Credit availability
- Prices, Income & consumption spending
- Income, prices & consumption spending
- Foreign exchange reserves
- Exchange rates
- Tax rates
- Behavior of capital market