Environment must be scanned so as to determine development and forecasts of factors that will influence organizational success. It helps the managers to decide the future path of the organization. Scanning must identify the threats and opportunities existing in the environment. While strategy formulation, an organization must take advantage of the opportunities and minimize the threats.
Micro-environment[ edit ] Company aspect of micro-environment refers to the internal environment of the company. This includes all Departmentalization departments such as management, finance, research and development, purchasing, Business operations and accounting.
Each of these departments influences marketing decisions. For example, research and development have input as to the features a product can perform and accounting approves the financial side of marketing plans and budget in customer dissatisfaction.
Marketing managers must watch supply availability and other trends dealing with suppliers to ensure that product will be delivered to customers in the time frame required in order to maintain a strong customer relationship.
These are the people that help the company promote, sell, and distribute its products to final buyers. Resellers are those that hold and sell the company's product.
They match the distribution to the customers and include places such as Wal-Mart, Target, and Best Buy. Physical distribution firms are places such as warehouses that store and transport the company's product from its origin to its destination.
Marketing services agencies are companies that offer services such as Environmental scanning marketing research, advertising, and consulting. Financial intermediaries are institutions such as banks, credit companies and Insurance companies. There are different types of customer markets including consumer markets, business markets, government markets, Globalization international markets, and reseller Environmental scanning.
The consumer market is made up of individuals who buy goods and services for their own personal use or use in their household. Business markets include those that buy goods and services for use in producing their own products to sell.
This is different from the reseller market which includes businesses that purchase goods to resell as is for a profit. These are the same companies mentioned as market intermediaries. The government market consists of government agencies that buy goods to produce public services or transfer goods to others who need them.
International markets include buyers in other countries and includes customers from the previous categories.
To remain competitive a company must consider who their biggest competitors are while considering its own size and position in the industry.
The company should develop a strategic advantage over their competitors. The final aspect of the micro environment is publics, which is any group that has an interest in or effect on the organization's ability to meet its goals. For example, financial publics can hinder a company's ability to obtain funds affecting the level of credit a company has.
Media public include newspapers and magazines that can publish articles of interest regarding the company and editorials that may influence customers' opinions. Government public can affect the company by passing legislation and laws that put restrictions on the company's actions.
Citizen-action publics include environmental groups and minority groups and can question the actions of a company and put them in the public spotlight.
Local publics are neighborhood and community organizations and will also question a company's effect on the local area and the level of responsibility of their actions.
The general public can affect the company as any change in their attitude, whether positive or negative, can cause sales to go up or down because the general public is often the company's customer base. And finally those who are employed within the company and deal with the organization and construction of the company's product.
Macro-environment[ edit ] The macro-environment refers to all forces that are part of the larger society and affect the micro-environment.
It includes concepts such as demography, economy, natural forces, technology, politics, and culture. The purpose of analyzing the macro marketing environment is to understand the environment better and to adapt to the social environment and change through the marketing effort of the enterprise to achieve the goal of the enterprise marketing.
Demography refers to studying human populations in terms of size, density, location, age, gender, race, and occupation. An example of demography is classifying groups of people according to the year they were born. These classifications can be referred to as baby boomerswho are born between andgeneration Xwho are born between andand generation Ywho are born between and Each classification has different characteristics and causes they find important.
This can be beneficial to a marketer as they can decide who their product would benefit most and tailor their marketing plan to attract that segment. Demography covers many aspects that are important to marketers including family dynamics, geographic shifts, workforce changes, and levels of diversity in any given area.
Another aspect of the macro-environment is the economic environment. This refers to the purchasing power of potential customers and the ways in which people spend their money. Within this area are two different economies, subsistence and industrialized.
Subsistence economies are based more in agriculture and consume their own industrial output. Industrial economies have markets that are diverse and carry many different types of goods.Scanning has been used by a variety of organizations for many years, with its origination perhaps coming from military intelligence and strategic planning.
Environmental scanning is known as a key function of successful managers working at successful organizations. Nov 08, · Environmental scanning is a data collection practice. It is aimed at collecting information about an environment such as an office or institution that can be used in planning, development, and ongoing monitoring by managers and supervisors.
The environmental scanning process entails obtaining both factual and subjective information on the business environments in which a company is operating or considering entering 2.
Definition of environmental scanning: Careful monitoring of an organization's internal and external environments for detecting early signs of opportunities and threats that may influence its current and future plans.
Environmental Scanning - Internal & External Analysis of Environment Organizational environment consists of both external and internal factors. Environment must be scanned so as to determine development and forecasts . Environmental Scanning is a process that systematically surveys and interprets relevant data to identify external opportunities and threats.
An organization gathers information about the external world, its competitors and itself.