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
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STRENGHT
OPPORTUNITIES
WEAKNESESS
THREATS
INTERNAL FACTORS
EXTERNAL 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
55
Male
• sex
50
Female
45
• religion
• education
• population density
• employment
• etc.
AGE
0-15
YEARS
16-26
YEARS
27-59
YEARS
60 AND
OLDER
TECHNICAL AND TECNOLOGICAL FACTORS
•
•
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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-MarketingEnvironment_11_28
• http://marketmedialife.blogspot.cz/2012/09/marketing-101-culturalfactors.html
• www.pixabay.com