Scanning of Market

Environment

Reported by: Jesse-Ann Calzadora

Maria Feliza Pariñas
Market Environment

 is a marketing term and refers to all of the

forces outside of marketing that affect
marketing management’s ability to build
and maintain successful relationships with
target customers.
Three key perspectives on the marketing
environment

- 'internal environment'.
- 'micro-environment,'
- 'macro-environment'
Market Environment Chart

SWOT
A. Internal Environment

 All factors that are internal to the organization are

known as the “internal environment”.

 It includes:

» 5 Ms’ :

» Men
» Money
» Machinery
» Materials
» Markets
B. Microenvironment

All forces that are close to the company and affect

its ability to serve its customers.

It includes:

 Company
 Suppliers
 Marketing Intermediaries
 Customer Markets
 Competitors
 Publics
 Company

All departments

Such as:
- Management
- Finance
- Accounting
- Research and Development
- Purchasing
- Operations
- Etc.
 Suppliers

- of a company are also an important aspect

of the microenvironment because even the
slightest delay in receiving supplies can
result in customer dissatisfaction.
 Market Intermediaries

- Resellers - are those that hold and sell the company’s

product.

- Physical Distribution Firms -are places such as

warehouses that store and transport the company’s
product from its origin to its destination.

- Marketing Service Agencies - are companies that offer

services such as conducting marketing research,
advertising, and consulting.

- Financial Intermediaries
 Customer Market

- consumer markets - who buy goods and services for their

own personal use or use in their household.

- business markets - include those that buy goods and

services for use in producing their own products to sell.

- reseller markets - which includes businesses that purchase

goods to resell as is for a profit.

- government market - consists of government agencies that

buy goods to produce public services or transfer goods to
others who need them.

- International markets - include buyers in other countries and

includes customers from the previous categories.
 Competitors

- also a factor in the microenvironment and

include companies with similar offerings for
goods and services.

- To remain competitive a company must

consider who their biggest competitors are
while considering its own size and position in
the industry.
 Publics
- The final aspect of the microenvironment is publics, which is any group that
has an interest in or impact on the organization’s ability to meet its goals.

- For example:

- Financial publics - can hinder a company’s ability to obtain funds

affecting the level of credit a company has.

- Media publics - include newspapers and magazines that can publish articles
of interest regarding the company and editorials that may influence
customers’ opinions.

- Government publics - can affect the company by passing legislation and

laws that put restrictions on the company’s actions.

- Citizen-action publics - include environmental groups and minority groups

and can question the actions of a company and put them in the public
spotlight.
 Publics

- Local publics - are neighborhood and community

organizations and will also question a company’s impact on
the local area and the level of responsibility of their actions.

- General public - can greatly affect the company as any

change in their attitude, whether positive or negative, can
cause sales to go up or down because the general public is
often the company’s customer base.

- Internal publics - include all those who are employed within

the company and deal with the organization and
construction of the company’s product.
C. Macroenvironment

All factors that are not part of the larger society and
affect the microenvironment.

It Includes:

 Demography
 Economy
 Natural Environment/Forces
 Technology
 Politics
 Culture
 Demography

- refers to studying human populations in

terms of size, density, location, age,
gender, race, and occupation.

- Each classification has different

characteristics and causes they find
important. This can be beneficial to a
marketer as they can decide who their
product would benefit most and tailor their
marketing plan to attract that segment.
 Economy

- This refers to the purchasing power of

potential customers and the ways in which
people spend their money. Within this area
are two different economies, subsistence
and industrialized.

- Subsistence economies are based more in

agriculture and consume their own
industrial output. Industrial economies have
markets that are diverse and carry many
different types of goods.
Natural Environment Forces

- This includes the natural resources that a

company uses as inputs and affects their
marketing activities.

- The concern in this area is the increased

pollution, shortages of raw materials and
increased governmental intervention.
Technological Environment

- is perhaps one of the fastest changing

factors in the macroenvironment.

- This includes all developments from

antibiotics and surgery to nuclear missiles
and chemical weapons to automobiles and
credit cards.
 Politics

- includes all laws, government agencies,

and groups that influence or limit other
organizations and individuals within a
society.
 Culture

- is the cultural environment, which consists

of institutions and basic values and beliefs
of a group of people.
SWOT ANALYSIS

- (Strength, Weaknesses, Opportunities & Threats)

- It is a first stage of planning and helps marketers to

focus on key issues.

- Swot analysis is a strategic planning method used

to evaluate Strength, Weaknesses, Opportunities
and Threats involved in a project or in a business
venture.

- Swot was introduced by Albert Humphrey.

 SWOT Analysis Chart

BENEFICIAL HARMFUL

INTERNAL STRENGTH WEAKNESSES

ENVIRONMENT

EXTERNAL OPPORTUNITIES THREATS

ENVIRONMENT
2 Factors of SWOT Analysis

 Internal environment
 - things that we can control.
 - consist of strength and weaknesses

 External environment
 - things that we cannot control.
 - consist of opportunities and threats.
 Definition

 Strength – attributes of the person or company that

are helpful to achieving the objectives.

 Weaknesses – attributes of the person or company

that are harmful to achieving the objective.

 Opportunities – external conditions that are helpful

to achieving the objectives.

 Threats – external conditions which could do

damage to the objective.
 Key Questions

 STRENGTH
 What advantages do you or your company have?
 What do you better than anyone else?
 What your people in your market see your strength?

 WEAKNESSES
 What could you improve?
 What do you avoid?
 What factors lose your sales?
 What do outside see as your weaknesses?
 Key Questions

 OPPORTUNITIES
 What interesting trend you whereof?
 What opportunity might arise from change in
technology, government, policy, economic and
social?

 THREATS
 What obstacles you and your company fail?
 What do your competition doing that you should
worried about?
 SWOT MATRIX
 – matching and converting

S W

O S-O W-O

T S-T W-T

S-O strategies - pursue opportunities that are a good fit to the company’s
strength. Finding competitive advantage of the company.
W-O strategies – overcome weaknesses to pursue opportunities.
S-T strategies – identify ways that the firm can use its strengths to reduce its
vulnerability to external threats.
W-T strategies – establish a defensive plan to prevent the firms weaknesses
from making high susceptible to external threats.
Steps in doing SWOT Analysis

*When you making list be precise and prioritize to

the most important points.

1. List all strength and weaknesses that exist now.

Be realistic
2. List all opportunities and threats that exist in the
future.
3. Review your SWOT analysis in creating an
action to address each 4 areas.
 Example of SWOT Analysis

EX.OF SWOT ANALYSIS

WALMART
 Internal Environment
A. Strength
A1.Management - are committed in providing state-of-the-art
training resources and development to help their employees
in achieving their career objective.
- very strong community based initiative.
A2.Marketing - Low Prices
- one stop shop
A3.Finance - Walmart is respectable in financial
position so they attract and retain employees.
Example of SWOT Analysis

B. Weaknesses
B1. Management – societal demand for equity. Few
female are in the top management.

B2. Finance – they have asset that they are not

used at this point in time.
- collection of doubtful accounts.

B3. Production/Service – slow check out service.

Example of SWOT Analysis

 External Environment
C. Opportunities
C1.Economic – availability of free trade zone.
C2. Social, Cultural and Environmental – an
opportunity facing the industry is that customer
want ease of shopping.
C3. Political, Legal and Government – an
opportunity facing the industry is that Asian market
virtually untapped by the retail world.
C4.Technological – an opportunity facing the
industry is that internet is growing
Example of SWOT Analysis

D. Threats
D1.Economic – nowadays the economic growth is slow.

D2. Social, Cultural and Environmental – a threat is a

customer theft / employee’s theft.

D3. Political, Legal and Government – A threat is the

Chinese Regulation. China does not want to open any
foreign business in their country.

D4. Technological – a threat is that because of

technological advances product that they sell become
obsolete.
Example of SWOT Analysis

STRATEGIES:

S-O Expansion of business globally.

W-O Create project planning for the unused assets

Additional employees assign to counter
department for customer convenience.
S-T Buy CCTV camera to avoid or minimize theft.

W-T Offer commissions or bonus scheme to

employees.
Thank you… 