FLASHBACK NOTES// CLASS XI // MARKETING
TOPIC: MARKETING ENVIRONMENT
MEANING OF BUSINESS ENVIRONMENT
“Business environment is the climate or set of
conditions -i.e., economic, social, legal, technological and
political situations in which business activities are
conducted". A company's marketing environment
consists of the factors and forces outside marketing that
affect its management's ability to build and maintain
successful relationships with target customers."
MICRO AND MACRO ENVIRONMENT
Micro environment consists of the elements or forces
that influence marketing and business directly. It
includes suppliers, customers, intermediaries,
competitors and the general public.
Macro environment includes demographics,
economic forces, political and legal forces, socio-
cultural and technological forces, which are beyond the
control of firm and affect business indirectly.
MEANING OF ENVIRONMENTAL SCANNING
Environmental scanning is a process of scrutinizing
and weighing up changes and trends in marketing
environment by the firm. Through environmental
analysis, the management can develop an
Environmental Threat and Opportunity Profile (ETOP)
which gauges the impact of various environmental
forces on the firm. Before production and launching
the product in the market the management has to
make a good market research to explore various
aspects like-
a)Nature of target customers- Identifying the size of
family, job profile, purchasing power and buying motive of
the customer etc. For example before introducing Tata
Nano to the automobile market these factors were ensured
by the company.
, b)The market trends-Observing the position of company's
previous products and services in the market, whether demand is
likely to remain static, decrease or increase.
c)Economic, social and political trends- Scanning the
economic, social and political trends affecting production
namely monetary policy, social changes, anti-pollution or
energy conservation laws e.g., Tata Nano project faced
strong opposition in Singur (West Bengal) both socially and
politically.
d)Technology trends- Anticipation of technological changes,
i.e. whether new product may become popular or what type
of technology advancements are about to take place.
e)Competition in the market- Analyzing the upcoming or
existing competitors and what are their strengths and
weaknesses.
IMPORTANCE OF ENVIRONMENTAL SCANNING
Importance of Environmental Scanning
• Determining Opportunities
• Identification of Threats
• Sensitization of Management to Cope with Rapid Changes
• Formulation of Strategies and Policies
• Image Building
• Continuous Learning
• Giving Direction for Growth
• Identifying Firm’s Strength and Weakness
• Basis of strategy
• Intellectual stimulation
TOPIC: MARKETING ENVIRONMENT
MEANING OF BUSINESS ENVIRONMENT
“Business environment is the climate or set of
conditions -i.e., economic, social, legal, technological and
political situations in which business activities are
conducted". A company's marketing environment
consists of the factors and forces outside marketing that
affect its management's ability to build and maintain
successful relationships with target customers."
MICRO AND MACRO ENVIRONMENT
Micro environment consists of the elements or forces
that influence marketing and business directly. It
includes suppliers, customers, intermediaries,
competitors and the general public.
Macro environment includes demographics,
economic forces, political and legal forces, socio-
cultural and technological forces, which are beyond the
control of firm and affect business indirectly.
MEANING OF ENVIRONMENTAL SCANNING
Environmental scanning is a process of scrutinizing
and weighing up changes and trends in marketing
environment by the firm. Through environmental
analysis, the management can develop an
Environmental Threat and Opportunity Profile (ETOP)
which gauges the impact of various environmental
forces on the firm. Before production and launching
the product in the market the management has to
make a good market research to explore various
aspects like-
a)Nature of target customers- Identifying the size of
family, job profile, purchasing power and buying motive of
the customer etc. For example before introducing Tata
Nano to the automobile market these factors were ensured
by the company.
, b)The market trends-Observing the position of company's
previous products and services in the market, whether demand is
likely to remain static, decrease or increase.
c)Economic, social and political trends- Scanning the
economic, social and political trends affecting production
namely monetary policy, social changes, anti-pollution or
energy conservation laws e.g., Tata Nano project faced
strong opposition in Singur (West Bengal) both socially and
politically.
d)Technology trends- Anticipation of technological changes,
i.e. whether new product may become popular or what type
of technology advancements are about to take place.
e)Competition in the market- Analyzing the upcoming or
existing competitors and what are their strengths and
weaknesses.
IMPORTANCE OF ENVIRONMENTAL SCANNING
Importance of Environmental Scanning
• Determining Opportunities
• Identification of Threats
• Sensitization of Management to Cope with Rapid Changes
• Formulation of Strategies and Policies
• Image Building
• Continuous Learning
• Giving Direction for Growth
• Identifying Firm’s Strength and Weakness
• Basis of strategy
• Intellectual stimulation
