THE IMPACT OF THE APPRECIATION OF CHANGE, DEVELOPMENT AND TRENDS IN THE MARKETING ENVIRONMENT AND HOW IT AFFECTS MARKETING ACTIVITIES IN AN ORGANIZATION

THE IMPACT OF THE APPRECIATION OF CHANGE, DEVELOPMENT AND TRENDS IN THE MARKETING ENVIRONMENT AND HOW IT AFFECTS MARKETING ACTIVITIES IN AN ORGANIZATION

INTRODUCTION

In life change in the only one thing that is quite certain, which can either be in the negative or positive direction, this is clearly seen in the past few years as marketing environment tends to change from one phase to another. The traditional way of running organization has change by the introduction of internet and its different facets. Several researches have shown that change in marketing environment is significantly related to organizational performance in a variety of contexts. Therefore this assignment seeks to examine the effects / impact of such change in marketing environment on organizational performance (marketing activities in an organization).

DEFINITION OF MARKETING ENVIRONMENT

Marketing environment refers to factors and forces that affect a firm’s ability to build and maintain successful relationship with customers.

MARKETING ENVIRONMENT

No business operates in a vacuum. Decisions are made within a context of competition, customer characteristics, behaviour of suppliers and distributors, and of course within a legislative and social framework. People working within organisations are contributing to the welfare of society and of each other, and obtaining satisfaction of their own needs in return: this complex network of exchanges results in a better standard of living for everybody.

From a marketing viewpoint, managing the exchange process between the firm and its customers comes highest on the list of priorities, but it would be impossible to carry out this function without considering the effects of customer-based decisions on other people and organisations.

A stakeholder is any individual or organisation affected by the firm’s activities – neighbours, suppliers, competitors, customers, even governments – and all of these will have some input into marketing decisions, either directly or indirectly.

Some environmental factors are easily controlled by managers within the firm, whereas others cannot be changed and must therefore be accommodated in decision-making.

In order to assess the impact of different environmental factors, organizations first need to classify them.

This marketing environment is divided into

1.     Micro environment and

2.     Macro environment variables,

These variables are dynamic in nature and because of this and they become an important determinant of the future of the organization, for these changes affect the organization in one way or the other.

The micro environment consists of the forces close to the company that affect its ability to serve its customers. (Kincaid, 1995). The micro environment can also be termed the operating environment. They are as follow:

i.       Suppliers: They provide organizations with their inputs. Availability and regularity of a company’s product supply is a function of the availability and regularity of the supply of material inputs need of the company. And also, the quality of the company product is a function of the supply of quality material inputs. The cost of material inputs also affects marketing.

ii.     Marketing Intermediaries: These are firms that help the company to promote, sell and distribute its goods to final buyers; they include middlemen, physical distribution firms, marketing service agencies, financial intermediaries.

iii.  Customers: All marketing operatives are aimed at meeting the specifications and requirements of their customers better than their competitors and ensuring that the customers buys to meet the desired level of demand of the firms. To succeed in this, the firms must know their customers very well and ascertain from them what they want.

iv.  Competitors: This consists of all other firms within the same industry, selling goods that satisfy similar needs, different forms of the same generic goods and different brands of a product.

v.     Company: Since the marketing department cannot operate in isolation, it should build up a good relationship with other departments in the organization so as to be able to carry out its marketing activities and these include, top management, finance and accounting, research and development, production, personnel, maintenance departments.

The macro environment includes all the forces external to the firm and outside its operating environment that interact to constrain or promote the marketing operation of the firm, constitute threats to it and create opportunities for it Uti (1996).

Such factors include:

I.                  Economic Environment: This environment comprises of factors that affect consumer buying power and spending patterns. Some of the factors here are inflationary rate, interest rate, resource shortages, employment and exchange rate of national currency.

II.               Technology Environment: According to Uti (1996), technology is the knowledge and procedures that go into getting something done. Technologies help societies in simplifying tasks and ensuring that they become effective and efficient in all they do.

III.           Government Policies: Government is the original element of state with commanding powers over all other institutions of the state including business firm owing to its powers, government is in a vintage position to influence and determine the nature, direction and magnitude of events in other institutions (Uti, 1996).

IV.           Socio/Cultural Environment: The culture of a given society is largely responsible for the formation of an individual’s attitudes, beliefs and value system. These, once formed are difficult to change. The answer to the question of what people will eat, drink, wear and generally purchase is to be found in their culture also answers the questions of what people buy and wear.

V.               Demographic Environment: It comprises the structure and composition of the population or markets served by business firms. It analysis the kinds of people who make up the population or various segments of a market. The key variables in the demographic environment that marketing management is most interested in are the size of the population, the geographical distribution of the population, age and sex distribution of the population, population density, birth and death rates, ethnic and religious structure of the population.

The Impact / Effects of Change In Marketing Environment On The Marketing Activities In An Organization

Change in any of the marketing environment outline above has either positive or negative impact on marketing activities in an organization and the achievement of the overall goals of an organization.

For instances, demography which is the study of the characteristics of human populations. Today’s demographic environment shows a changing age structure, shifting family profiles, geographic population shifts, a better educated and more white-collar population, and increasing diversity. The economic environment consists of factors that affect buying power and patterns.

The economic environment is characterized by more consumer concern for value in shifting consumer spending patterns. Today’s squeezed consumers are seeking greater value – just the right combination of good quality and service at a fair price. The distribution of income also is shifting. The rich have grown richer, the middle class has shrunk, and the poor have remained poor, leading to a two-tiered market. Many companies now tailor their marketing offers to two different markets the affluent and the less affluent, this different effect on marketing activities in an organization as the organization need change their marketing strategies as the environment in which they operate keep changing in order to attained the organizational goals.

There are six major macro environment forces: cultural, demographic, economic, natural, political, and technological. The cultural environment includes institutions and other forces that affect the basic values, behaviours, and preferences of the society-all of which have an effect on consumer marketing decisions. The demographic environment includes the study of human populations in terms of size, density, location, age, sex, race, occupation, and other.

All these marketing environments either macro or micro environment if changed has a great effect on marketing activities in an organization e.g. change in government policies can affect production and distribution of certain goods and services.

  

CONCLUSION

Marketing environment is ever dynamic in nature therefore organizations need to be dynamic in their decision making and response to he ever changing environment to remain in business. Hence is highly recommended that the organization need to be involved in constant marketing research to keep themselves up-to-date with current trends in the marketing environment in order to make their right marketing decision, have the right marketing plan and strategies so as to achieve the organizational goals. 

 

REFERENCES

Kotler, P. (1994): Marketing Management: Analysis, Planning, Implementation and Control, Eight Edition, Prentice – Hall, Incorporated Eaglewood Cliffs New Jersey.

Kotler P. and Armstrong G. (1996): Principles of Marketing, Seventh Edition, Prentice – Hall of India Private Limited. Connaught Circus, New Delhi.

Nwaolai, C: Strategies for Finding Hidden Profits in Your Business. Success Digest: Published by Obazu Company

Limited, Lagos. Page 40, June 1998.

Uti A.M. Evolving Enduring Distribution Strategy; Published by Daily Times of Nigeria, Lagos Page 25, April 15, 1996.