MARKET ENVIRONMENT MARKET ENVIRONMENT Managers important task is

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 P O S I T I V N E G A T I V E S F A C T O R STRENGHT OPPORTUNITIES WEAKNESESS THREATS INTERNAL FACTORS EXTERNAL FACTORS E S F A C T O R

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 52 Male • sex Female 47 • religion • education • population density • employment • etc. AGE 0 -15 YEARS 16 -26 YEARS 27 -59 YEARS 60 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 -culturalfactors. html • www. pixabay. com