Marketing environment plays an important role for it observes the relevant events & trends in the environment. It discerns which events are favorable from standpoint of the firm & which are unfavorable. Marketing environment finds out the opportunities and hidden threats in the environment.
It accesses the scope of various opportunities & shows those that can favorably impact the business & to project how the environments each factor will be useful to a business from its future point of view.
1 Demographic Environment
Since business depends on consumer so it is very important to study environment analysis. As a matter of fact several factors like population size, growth, age, gender, religion, literacy level need to be studied.
2) Socio-Cultural Environment
The socio-cultural environment is another important component of the mega-environment. Culture, traditions beliefs, values & lifestyle of the people in a given society constitute the socio-cultural environment
Culture- It is a combined result of factors like religion, language, education. In any society, some cultural values are deep-rooted and these values don’t change easily
Here Social class is an important concept . Any society is composed of different social classes & it is determined by income, a location of residence etc
3) Economic Environment
It is a vital component of the economy it considers the following points
- General Economy
- Economic Conditions of different segments of the population their disposable income, purchasing power etc
- The rate of growth of the economy rate of each sector of the economy like
d) Consumer goods
4) Political Environment
This is a major component of the environment for a business firm. It is the political environment whether one company should sustain in an economy or not. It consists of government adopted by the country is a prior element of social & religious organization media &pressure groups & lobbies of various kinds are also part of the political environment
For Eg: Reliance fresh concept was not succeeded in U.P, M.P because there was a strong opposition from political parties
5) Technological Environment
Today technology is a major force which industry and business have to cop up with. For a business firm technology not only affects final product but also its rm, processes & operation as well as its customer segment. Due to rapid change in technology much innovative product are available on the market today. Every firm properly analyses technological changes taking place in its industry at international level.
For eg, IT & Telecom industries are best examples
6) Legal Environment
Businesses have to operate within the framework of the prevailing legal environment. They have to understand the implications of all the legal provisions related to their business.
Business legislation can be classified into following.
a) Corporate affairs.
c) Employee protection.
d) Regulations on product, prices& distribution.
e) Control of trade practices.
Multinational companies which operate across several countries face particularly tough problems in this regards. They have to access the legal parameters prevailing in several countries and make their choice of entry in that.
7) Natural Environment
The business enterprises are greatly affected by the like natural resources & Ecology
Natural Resources: Business firm depends on natural resources. A raw material is one of the major parts of these resources so the firm has to continuously check its availability
Ecology: Firms are also concerned with ecology like pollution, protection of wildlife & ocean wealth. The business firm will have to know the nature & its dimensions.