Marketing Environment The responsibility for scanning the environment and identifying major changes is that of the marketing

manager. This helps in spotting opportunities early on and also in warding off threats before they became more serious. The companys marketing strategy will depend on the current marketing environment. The need for environmental analysis is to have an insight into the current market conditions as well as understand the impact of external forces. The marketing Environment can broadly be classified as Internal Environment: which consists of the organization structure and culture and can is directly under the control of the organization. External Environment which lie outside the organization and cannot be directly controlled. The firm can at best try to manage it by understanding its impact. The external environment can be classified into major categories. !. "olitical Environment #. Economic Environment $. %ocio&cultural Environment . Technological Environment Political Environment The political environment consists of the factors relating to the management of public affairs as well as the legal environment ' laws relating to pricing( competition( distribution( advertisements etc. The political environment has a close relationship with the economic environment. The political ideology influences certain economic policies and economic slant. )or eg. the influence of the left wing parties in the *"+ government led to a slow down in the reform process in ,ndia in recent times. The governments may also specify certain laws regarding production of certain goods( ban the manufacture of others( prohibit the marketing and promotion of certain goods and have various other control systems in place. + marketer has to operate his business in a given political environment and hence marketing decisions are influenced by developments in the political environment. "olitical factors that a marketer should consider is a. -ole of private sector in the economy b. .overnment procedure and changes in government policy c. Types of government and stability in government d. -ole of service sector and small scale industry in the economy "olitical changes can take place as / a. %table governments leading to few policy changes. Eg. ,ndia post independence till !012.

b. )re3uent government changes leading to fre3uent changes in the government. c. 4yclical changes ' 4hange of political party post elections in a democratic country or change of power base in other political situation. ,nternationally the political blocs like 5+)T+ ( European *nion( +%E+5 and %++-4 also affect the economy and the marketing policies of a company. + nations political alliance with another nation may also open up certain opportunities or close certain opportunities. The ability of the organization to lobby and attempt to influence6 change the policy of the government is an attempt on the part of the company to try and control the environment. Economic environment consists of the general economic conditions in the country as well as the industrial conditions and the supply of resources. ,t describes the overall economic situation in a country and a careful analysis of the same will help a marketer to decide whether the conditions are suitable for certain products 6policies of the firm. The general economic conditions of the country will includes factors like & ,ndustry output & "er capita income and pattern of income distribution & %aving and expenditure pattern & ,nflation and interest rates & Employment trends & Economic systems like the development of economic structures like central banking( financial institutions( stock exchange and their regulation ,ndustrial conditions & t he growth rate of various industries & demand patterns for various industries %upply of resources for production like land( labour( capital( machinery and managerial talents. Socio-cultural environment/ The socio&cultural environment consist of the human relationships and the development such relationships have on the business of the organization. The important factors are & the buying and consumption habits of people & language( beliefs and customs & taste and preference & education( class levels etc The social environment determines the value system of the nation which in turn will affect the marketing of the product. The countrys social environment is continuously changing. ,t has the following dimensions

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changes in peoples lifestyle / more and more women work outside the home now( smaller families with children having a major say in things that are bought ( higher expenditure( eating out ( nuclear family set&up etc. 4oncern for social problems .rowth of consumerism ' buying more products ( growth of credit cards in ,ndia ( purchase on installments. More replacement products etc.

Technological environment )actors that are related to the knowledge applied and materials6machines used in production of goods and services that have an impact on the business of the organization. The following factors are important/ & %ources of technology like internally developed ( bought from external sources ( outside the country ( collaboration and transfer of technology & %tages of development ( rate of change of technology ( research and development. & ,mpact on human beings and on the environment & 4ommunication and infrastructural technology. Technology environment brings both opportunities ' new product( new markets ' and threats ' obsolete products( going out of business. ,t impact is direct as well as indirect. ,t is difficult to predict advances 6 changes in technology. ,n the current scenario the technology is rapidly changing( hence it makes sense for a marketer to make careful short term decisions as well as long term contingency plans. Technology can affect all the ps of the marketing mix. ,t can change the product completely ' eg replace the typewriter with the computer( change the input material ' plastics have replaced wood 6 metal in many areas which make the product lighter( more flexible easier to transport as well as cheaper to produce and produce in higher numbers. ,t can change the price element as well & new technology may be investment heavy in the initial stages but it would lead to lower production costs which can then be passed on the consumer ' egs. 4ellphones ( computers etc. Technology can also help in channel distribution ' technology like the barcode helped develop the 7just&in& time8 inventory approach. +lso helps in individual promotional strategy by using the marketing database and 4-M 9 4ustomer relationship management : techni3ues.