Download Marketing environment scanning.

Marketing environment scanning.
The marketing environment includes all factors and drivers which influences the business of an
organization in a directly or indirectly way.
Marketing environment is that which is external to the marketing management function, largely
uncontrollable, potentially relevant to marketing decision making, & changing & / or constraining in
nature. The marketing environment is more important to management today than ever before, this
is both because the rate of environmental change has increased & because there are more types of
important environmental changes. The rate of environmental change should be remembered that all
of the development experienced by humankind has occurred within a mere moment of history. New
types of environmental change have come to the forefront, economic factors go to the core business
activity, & historically they have always been important to marketing management.
Environmental scanning can be defined as ‘the study and interpretation of the political, economic,
social and technological events and trends which influence a business, an industry or even a total
market’. Environment scanning includes environment monitoring, environment forecasting and
environment assessment. Environment monitoring includes observing the environment and its
factors while environment forecasting includes estimating and projecting the future environment
while environment assessment includes the analysis of monitoring and forecasting to convert into
valued decision making.
Environment can be microenvironment or macroenvironment. It can be controllable environment or
uncontrollable environment. It can be internal environment or external environment. There can be
so many ways of classification of environment and then monitoring, forecasting and assessment is
done on the classification basis. One of the popular ways of scanning the environment includes
PESTEL analysis. The PESTEL analysis includes Political, Economic, Social, Technological,
Environmental and Legal factors to be analyzed.

Political factors are how a government intervenes in the economy. The areas included in
political factors are labour law, tax policies, environmental law, trade and tariffs and regulations,
political stability and related factors etc.. The merit goods i. e. The goods that should be
provided to the society and the demerit goods i. e. the goods that shouldn’t be provided to the
society are included in political factors. The political factors have an influence on marketing as
the overall product - price - profit - production cycle also depends upon the political factors such
as regulations, laws, political stability etc..

Economic factors include economic growth, interest rates, exchange rates, the inflation rate
etc.. The economic factors have influence on the marketing process as price fluctuations to
product growth all depends on economic well being of the society.

Social factors include the social and cultural aspects. This should be scanned as factors like
attitudes, perception, consciousness, population growth, age distribution, emphasis on safety,
overall satisfaction from life etc. affects the marketing process.

Technological factors include how technology changes, the rate of technological change,
R&D activity, automation, computerization etc.. The technology several times defines the
success or failure of marketing. The technology directs innovation, discovery, cost reduction,
quality enhancement, outsourcing etc..

Environmental or ecological factors include climate, climate change, weather, greenary etc.. The
ecological factors have a great impact on rain too which is very important for farming specially
in India. Further, carbon credit and similar contracts with global environmental variables several
times affect global marketing process.

Legal factors include various kinds of laws like the companies act 1956, the contract act 1872,
the negotiable instruments act 1881, the monopolies and restrictive trade practices act 1969,
the competition act 2002, the essential commodities act 1955, the environment ( protection )
act 1986 etc.. The law framing is somewhere overlapping with political factors but the
implementation and jurisdiction part of the laws are also important for marketing process.