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Unit 2: Understanding the Marketplace and Consumers
Notes
Figure 2.3: Constituents of Macro Environment
Consumer
Competitors
Company
Micro Environment Market
Suppliers
Intermediaries
Public
Self Assessment
State whether the following statements are true or false:
1. Consumer is at the center of the marketing environment.
2. Suppliers belong to the internal environment of the company.
2.2 Environmental Scanning
Environmental scanning – also known as Environmental Monitoring – is the process of gathering
information regarding a company’s environment, analysing it and forecasting the impact of all
predictable environmental changes. Successful marketing depends largely on how a company
can synchronise its marketing programmes with its environmental changes.
The major components of environmental scanning are:
1. External environmental analysis
2. Customer analysis
3. Competitor analysis
4. Market analysis
5. Company analysis
2.2.1 External Environmental Analysis
External environment can be divided into macro environment and micro environment.
Macro Environmental Analysis
Demographic Environment
Factors relating to population, such as size, growth rate, age distribution, religious composition
and literacy levels and aspects like composition of workforce, household patterns, regional
characteristics, population shifts etc., need to be studied as they are all part of the demographic
environment. The points to be considered here are:
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