Market Knowledge

Market Knowledge

1. environment

   • the forces that directly and indirectly influence an organization’s capability to undertake (entreprendre) its business
   • helps a business to compete more effectively against its rivals
   • assists in the identifications of opportunities and threats
   • enables an organization to take advantage of emerging strategic opportunities

2. macroenvironment

   • general forces that affect society as a whole, and not only businesses in your industry, but businesses overall.
   • Political and legal forces
     • laws
       • increasing legislation
     • governement agencies
     • pressure groups
   • Economic
     • factors that affect consumers purchasing and spending power
     • trends of gross national product (PNB)
     • patterns of real growth in income
     • variations in geographical income distribution
     • economic variables
   • Social and cultural
     • forces that affect society's basic values,perceptions & behaviors
   • Demographic
     • data helps in preparing geographical marketing plans, household(foyer) marketing plans, age and sex wise(prudent) plans
     • influences behavior of consumers
   • Technological
     • Most dramatic force
     • Changes rapidly
     • Creates new markets and opportunities
     • Challenge is to make practical, affordable products
     • Safety regulations results in higher research costs and longer time between conceptualization and introduction of product
   • Natural
     • resources that are needed as inputs by marketers or that are affected by marketing activities
     • shortage of raw materials ( limited quantities of non renewable resources)
     • increased pollution
     • environmentally sustainable strategies

3. microenvironement

   • forces that are unique to your company and its relationship to them. You have an element of control over these forces in the sense that you directly or indirectly interact with them.
   • Suppliers
     • either individual or business houses
     • provide resources needed by the company
     • have a substantial impact on the marketing operations of the company
     • Companies can lower their supply costs and increase product quality to gain competitive advantage in the market
     • supply shortages have to be fully monitored and plans should be made to avoid it
   • Market intermediates
     • help the company in promoting, selling and distributing the goods to customers
     • middlemen, distributing agencies, market service agencies and financial institutions
   • Customers
     • Industrial market that are organizations buying for producing other and services goods and services
     • Reseller market that is organizations buying goods and services with a view to sell them to others
     • Government and other nonprofit market that are those buying goods and services in order to reduce public services
     • International market that are individuals and organizations of nations other then home land who buy for either consumption or industrial use
   • competitors
     • No company stands alone in serving and satisfying the needs of a customer market
     • monitor its competitors' offerings to create strategic advantage
     • analysis
       • infrastructure
       • weaknesses
       • strenghts
       • plans
       • reputation
       • marketing mix
       • market share
   • public
     • any group that has an actual potential interest in or impact on a company’s ability to achieve its objective.
     • Citizen/gov+/financial

4. Purpose of analyzing the market

   • know where the environment is heading
   • discern which events and trends are favorable
   • assess the scope of various opportunities
   • help secure the right fit between the environment and the business unit