Marketing environment is a broad concept embracing various entities, activities, ideas, forces, resources, exchange processes, values norms, and laws. everything that matters to marketing is under marketing environment.
The scope of marketing environment includes the following aspects:
The scope of marketing environment includes the following aspects:
1. Entities
Various types of entities are involved in marketing environment. The entities include international agencies, governments, trade associations, business organizations, labor unions and social organizations. International agencies such as UN organizations, World Bank, International Monetary Fund and WTO play detrimental role in the development process of a country and supervise and regulate business and trade on a global basis. National governments are involved in regulating the marketing process through legislation and directives. Trade associations set norms of business behavior. They work for promotion of trade and industry in the country. Business organizations convert the resources and inputs into products and services. Labor unions determine industrial productions and productivity.
2. Activities
The economic, social, political and individual activities are part of the marketing environment. Economic activities directly influence marketing by expanding and contracting the size of market. The market size expand when the economy grows and marketing suffers when the economy slows down. Social activities such as festivals, social events, cross-cultural activities also expand the market. Increase in political events like strike, demonstrations and band decrease marketing activities. Individual activities of consumers are also part of the marketing environment as it determines level of consumption.
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Responding To The Marketing Environment
3. Resources
Key resources of the country such as natural resources ( mineral, water and solar, technological resources(research and development) , human ( education, knowledge, skill and entrepreneurship) are also under the scope of marketing environment.
The dynamism in the marketing environment is a part of the scope. All environmental forces- demography, economy, politics, laws, technology, and socio-culture of all countries are changing. The changes are bringing in new business opportunities and new challenges.
The process of exchange of information, inputs, technology, ideas, products, and services between the environment and the business firm is also under the scope of marketing environment. The firm receives valuable inputs from the environment in the form of money, raw materials, human resources, technology, and management ideas and converts the inputs into useful products and services. This interaction is important both for marketing and the environment. It helps both entities to grow and sustain in the society.
3. Resources
Key resources of the country such as natural resources ( mineral, water and solar, technological resources(research and development) , human ( education, knowledge, skill and entrepreneurship) are also under the scope of marketing environment.
4. Dynamism
The dynamism in the marketing environment is a part of the scope. All environmental forces- demography, economy, politics, laws, technology, and socio-culture of all countries are changing. The changes are bringing in new business opportunities and new challenges.
5. Exchange Process
The process of exchange of information, inputs, technology, ideas, products, and services between the environment and the business firm is also under the scope of marketing environment. The firm receives valuable inputs from the environment in the form of money, raw materials, human resources, technology, and management ideas and converts the inputs into useful products and services. This interaction is important both for marketing and the environment. It helps both entities to grow and sustain in the society.
