Changing Market Environment - 1642 Words

Changes in the Marketing Environment and its Implications The word â€Å"Marketing† refers to an activity that is strategically concerned with the management of relationship among an organization and environment. Environment could be described as an internal and external condition to an organization. Internal Environment consists of situational factors that are present within the organizational boundaries whereas external environment consists of any factors or conditions that are not under the control of an organization. Internal Environment creates strengths or weaknesses for a firm, however external environment may create opportunities or threats. Over the past some years, a significant change in external environment has been happened. In†¦show more content†¦They were more rigid. However, today consumers want change, they want to experience new things, and much more flexible. These are some of the reasons of fashionisatin and erosion of brands. All these things are demanding more change in the marketing environment. Earlier, all businesses produce goods and then market them broadly to the general public without considering the needs of specific consumers in the market. However, in the current situation companies are adopting more targeted approach. In this regard, they advertise and market their product primarily to their target market. Companies now are increasing their reliance on niche marketing and specialization which is also refers to micro market. This phenomenon of micro market is creating change in the marketing environment and possessing challenge to the marketer. Change in the marketing environment also comes from the product life cycle. As product moves from one stage to another, a change occurs. In the earlier and middle stages of the product, companies try to differentiate their products which help them to charge premiums from the customers. However, in the later stages of the product, commoditization happens. Commoditization is a concept which reduces the differentiation. Reduction in the differentiation would results in the shrinkage of profit margins. Generally, companies do not want to commoditize and strives to prolong the middleShow MoreRelatedThe Long Term Goals Of A Business1725 Words   |  7 Pagesexternal factors creates a firm’s business strategy. It is necessary for a firm to analyse and respond to the competitive environment due to the constantly changing nature outside the business. The competitive environment can be defined as the market in which the business trades against its competitors, with similar products or services, with the aim of gaining the largest market share using a competitive strategy. Jay Barney, an advocate of the resource based strategy, stated that â€Å"Firms obtainRead MoreUnderstanding The Benefits Of Strategic Management1674 Words   |  7 Pagesstrategic management emphasizes long-term performance and operational success of a firm. 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