Page 38 - DMGT408DMGT203_Marketing Management

Unit 2: Understanding the Marketplace and Consumers

human life span. Technology has changed the way people communicate with the advent of Notes
Internet and telecommunication system, and with the revolution in communications have come
new ways of doing business. This is opening up new business opportunities while consumers
reap the rewards of cutthroat competition among manufacturers. The following factors are to be
considered for the technological environment:
1. The pull of technological change
2. Opportunities arising out of technological innovation
3. Risk and uncertainty of technological development

4. Role of R&D in a country and government’s R&D budget.

Global Environment

The global environment is also rapidly changing. The new concept of global village has changed
how individuals and organisations relate to each other. The advent of worldwide terrorism has
the power to turn a booming economy into a stagnant one within no time. The new migratory
habits of the workforce as well as increased offshore operation are changing the dynamics of
business operation, while in the background, the WTO initiatives have changed the way nations
do business with each other, opening up markets and heralding the coming of a new global
economic order.

Micro Environmental Analysis

This is also known as the task environment and affects business and marketing at the daily
operating level. While the changes in the macro environment affect business in the long run, the
effect of micro environmental changes are noticed almost immediately. Organisations have to
closely analyse and monitor all the elements of microenvironment in order to adapt to rapid
change and stay competitive.

Consumer

According to Peter Drucker, the aim of business is to create and retain the customer. Hence
consumer occupies the central position in the marketing environment. The marketer has to
closely monitor and analyse changes in consumer tastes and preferences and cater to (if not try
and anticipate) their buying habits.
1. What constitutes the consumer value system?

2. What benefits is the consumer looking for?
3. Who are the consumers?
4. What are their buying patterns?

Competitors

Competition shapes business. A study of the competitive scenario is essential for the marketer,
particularly threats from competition.
1. Who are the competitors?
2. What are their present strategies and business objectives?
3. Who are the most aggressive and powerful competitors?

LOVELY PROFESSIONAL UNIVERSITY 31