Changes in the Marketing Environment and its Implications
The word “Marketing” refers to an activity that is strategically concerned with the management of relationship among an organization and environment. Environment could be described as an internal and external condition to an organization. Internal Environment consists of situational factors that are present within the organizational boundaries whereas external environment consists of any factors or conditions that are not under the control of an organization. Internal Environment creates strengths or weaknesses for a firm, however external environment may create opportunities or threats. Over the past some years, a significant change in external environment has been happened. In response to the change in external environment, companies have to change themselves and plan accordingly. Successful companies do not treat environment as a constraint, rather they view it as an opportunity. Some time the change in the environment becomes a competitive advantage for a firm who exploits the change at a right time.
Changes in the Marketing Environment:
Since a last decade or two, significant changes in the marketing environment have been observed in the marketplace. These significant changes could be categorized as, supply versus demand environment, rising expectations, innovation in technologies, globalization, increasing focus on service, fashionisation of markets, erosion of brands, micro markets, commoditization and other constraints.
Previously, many companies do not bother to even think about customer needs and wants. They only concentrated on their production and specialization side. However, over time marketing managers realized the fact that understanding customer needs, behaviors and wants are crucial for customer satisfaction which ensures the continuity of an organization in the market. Now every other business is trying to achieve customer satisfaction, meet customer expectations and increase their customer average life. These things have forced the companies now to focus on demand side rather than supply side.
Innovation in products and technologies is another source of change in the marketing environment. As pointed out earlier, that companies are now more focused on customer needs and wants. This thing has induced companies to bring innovation in their product features and processes. Competition has increased disastrously, which is forcing the firms to squeeze their profit margins and bring more efficiency in their production and processes. In order to accomplish this, companies demands more efficient technologies. This is something that every company in a particular industry has to follow. In order to remain competitive, all the companies have to adapt the new technology. Adapting the new technology or process means quitting the older ones, this brings change into the environment.
In today’s world, the concept of Globalization is becoming more and more common. Globalization is progressing at a very fast speed. In fact, now many countries are supporting the phenomenon of free trade which is uplifting the globalization. Another factor that underlies the globalization trend is the dramatic developments in information processing and transportation technologies. Now many firms have global presence which pushes them to think about marketing and environment in a global context. In this regard, an organization has not only to take care about domestic market environment, in fact international market environment as well.
Companies are now shifting their focus more on service side which cannot be standardized. Uniqueness and complexity of a service determines the extent of relationship between a business and the customer. Service is more customized than product. This customized nature of service is one of the sources of changing marketing environment.
Customers’ trends are changing rapidly. As a result their purchase intentions are also...
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