MARKET ENVIRONMENT

MARKET ENVIRONMENT• Managers´ important task is to know

the market environment• If the managers want to plan well,

they must know the environment where their company works we speak about market environment

THE USED METHODS FOR KNOWING MARKET ENVIRONMENT

• BCG matrix (see the presentation Marketing)• Product life cycle (see the presentation

Product)• SWOT analysis (see the slides below)• The Ansoff Matrix• Gap analysis• Benchmarking

SWOT ANALYSIS (SWOT MATRIX)• One of the most common methods of

getting information about a company and its environment• It was invented by Albert Humphrey• It divides characteristics of the company

and its environment into 4 groups:• Strengths• Weaknesses• Opportunities• Threats

SWOT ANALYSIS - CONTINUATION

OPPORTUNITIES

THREATS

STRENGHT

WEAKNESESS

INTERNAL FACTORS

EXTERNAL FACTORS

POSITIVE FACTORS

NEGATIVE FACTORS

EXAMPLES OF SWOT FACTORS• Internal factors: • product quality• skills, ability and efficiency of employees• work of management• hardware and technologies• External factors:• competition• political situation• financial, natural and technical factors

MARKET ENVIRONMENT• The marketers divide market

environment into two parts:• Micro-Environment (near

environment)• Macro-Environment (external

environment)

COMPANY LTD

MICRO-ENVIRONMENT• The micro-environment refers to the

forces that are close to the company• Factors that the company may affect

with its activities (at least partly)

COMPANY LTD

MICRO-ENVIRONMENT • Includes:• company itself• suppliers• marketing intermediaries• customer markets • public

MICRO-ENVIRONMENT• Company - employees, salary levels, staff

qualifications, facilities in the company, work itself (using technology or not), the complexity of decision-making and transmitting information in the company

• Customer markets – if final customers or other companies shop by this company

• Public relations – relations with customers, people who live near the company, public administration, interest groups (e.g. environmental movement) etc.

MACRO-ENVIRONMENT• The forces that affect business• The organization cannot control these

forces, it can only be prepared for changes

COMPANY LTD

MACRO-ENVIRONMENT• Includes factors: • demographic• technical and technological • natural• political• economical• cultural and social

DEMOGRAPHIC FACTORS= composition the population by:• age• sex• religion• education• population density• employment• etc.

455055

%%

AGE0-15 YEARS16-26 YEARS27-59 YEARS60 AND OLDER

TECHNICAL AND TECNOLOGICAL FACTORS• Speed of technological change• Research costs• Environmental impact of production• Level of production facility

NATURAL FACTORS• Natural resources• Environmental factors• Weather

POLITICAL FACTORS• Laws and regulations in the area

where the company works and where sells• Taxes• Economic constraints

ECONOMICAL FACTORS• Real incomes of consumers• Price levels• Attitude to money lending• GDP• Phase of business cycle

CULTURAL AND SOCIAL FACTORS• Consumers basic values (freedom,

family, hard work, social harmony)• Social class• Stage of family life (empty nest, full

nest …)• Interest groups

Resources:• http://en.wikipedia.org/wiki/SWOT_analysis• http://productlifecyclestages.com/• http://oxlearn.com/arg_Marketing-Resources-Marketing-Environment_11_28• http://marketmedialife.blogspot.cz/2012/09/marketing-101-cultural-factors.html• www.pixabay.com