Table of Contents
The Definition of Marketing Environment
Marketing Environment can be defined as the various internal and external factors that surround the business on a day to day basis and influence the marketing strategies and other operations of the firm. These factors can be divided into internal, micro, and macro marketing environmental factors of which some are within the control of the management of the firm and some of the micro factors such as government policies and technological developments amongst others that are not in the control of the company.
The company management has to plan and strategize its marketing operations depending on the factors that have the positive impact on its operations and some that affect it in a negative manner.
Importance of Marketing Environment
1) Essential for planning
It is necessary for the management of the company to understand the Importance of Marketing Environment astutely as it helps in planning of the business operations such as planning the nature and features of the new products and services to be launched in the market. It also helps in planning of various marketing and promotional strategies so as to match the offerings of the company to the current Marketing environment.
It is necessary to pay due attention to the Importance of Marketing Environment as some of the factors such as budgeting and internal company policies are controllable but other external and macro factors such as changing government policies and political scenario are not under the control of the management and hence, the planning of business operations and strategies has to be done in accordance to the evolving factors of the marketing environment.
2) Understanding Customers
The next on the list of the Importance of Marketing Environment is the firm gets to understand the exact needs and requirements of its existing as well as prospective customers. 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.
There is a possibility that even the loyal set of customers leave the brand of their choice and go for the products and services offered by the competitors owing to their evolving tastes. Hence, giving Importance to the Marketing Environment helps the company to retain its loyal set of customers and attract the new customers as well.
3) Tap new trends
Business is known for its volatile nature as the dynamics keep on changing and developing at a very fast pace with the change in the codes and policies of the government authorities, the onset of competition from the domestic and international brands, and customers opting for the new and innovative trends in the market. It is necessary for the brand to understand, tap, and embrace the new trends that are ruling the market in order to stay relevant and consistent amidst the changing dynamics.
4) Keep a check on threats
Giving attention to the Importance of Marketing Environment, the company is able to keep a thorough check on the factors that can have a negative impact on its business operations and act as an obstacle in its trajectory of growth and success. The brand has to keep an eye on the threatening factors such as growing competition in the market, price variations, evolving tastes of the customers, and other socio-economic factors.
5) Harp on the opportunities
There are various and fruitful opportunities as well as that come along the way of business with the threats and with a dedicated attention to the Importance of Marketing Environment, the management is able to catapult and harp on opportunities such as technological advancements and change in the government rules and regulations that work in the benefit of the company and its business operations and provides impetus in attaining the desired goals and objectives.
6) Understand the competition
The company is able to survive and thrive in the competitive market by keeping a detailed eye on the competitors by checking and understanding that what are the features and nature of their offerings, levels of customer service experience provided by them, marketing and promotional strategies, steps opted to retain the customers such as loyalty programs, discount offers, and more along with their pricing strategy; the company is able to plan its offering and the marketing strategies that are a notch higher than that of the competition to gain the advantage in the market.
7) Helps building strategy
Paying the required concentration to the Importance of Marketing Environment, helps the company to plan and build various business strategies such as deciding on the nature and unique attributes of the offerings, have competitive pricing, and working on the channel partner and distribution network amongst others along with planning the marketing strategies such as selecting the potent mix of marketing platforms such as television, radio, print, social media, outdoor hoardings, digital marketing, events, trade shows, and participation in various exhibitions amongst others.
The company is able to come up with the innovative line of products and services to its customers as per the modern and technological advancements, positive impact on the business with the fruitful government policies, relaxing norms on the tax procedures, and other such external factors that helps carve a distinctive identity in the marketplace amidst the tough and ever growing competition.
Example of Importance of Marketing Environment
The mobile technology brand Nokia had a stronghold in the market till the time the management of the company was paying due attention to the Importance of Marketing Environment. But with the changing spheres of business dynamics and the overall marketing environment, the company was not able to keep up with the developing choices of its customers and technological advancements and slowly and gradually the brand started losing its major chunk of market share to the new and technological advanced mobile brands such as Apple, Blackberry, and Samsung that bought the revolution of smartphones. Nokia slowly lost its battle and eventually vanished from the market.
Hence, it is very crucial for the brands to pay astute attention to the Importance of Marketing Environment to stay relevant and successfully survive and thrive in the market facing the tough competition attaining the business goals in a successful manner.
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