Introduction
Examination of the marketing environment is defined as a continuous process that includes collecting information about the internal and external environment of the organization, then analyzing it and predicting its direction or reaction resulting from it and its impact on the performance of the organization. the institution in order to be able to adapt to it and take the greatest benefit from it, and in what follows, the article will present these factors.
What are the eight marketing environment factors?
There are many factors and forces that affect institutions and businesses, as follows:
Demographic factors
Demographic factors are related to the population, so the marketer must study these factors because the basis of the market is people. They constitute the population census, as studies of demographic factors provide a file on the customer that contains his basic needs to facilitate the process of market segmentation and also help in choosing the target audience of the marketing process for a specific product or service. Therefore, demographic factors have a noticeable and direct impact on the operations of the organization, so the marketer must Analyze these factors to have knowledge of the number and type of people who will be served as clients.
Ecological factors
It is known as the natural environment, and these factors are concerned with protecting nature and natural resources. Many scientists have made global efforts to preserve the environment. In spite of that, these efforts have imposed restrictions and limitations in the use of natural resources, which led to a rise in the cost of the resources used in production, and therefore these factors will affect the production and distribution processes, so the institution must provide a product with good quality and a price that satisfies customers and without causing problems in the natural environment.
Economic Factors
The economic environment includes several economic forces that affect the expenditures and revenues of the institution, and the purchasing power of the consumer and his desire to spend on the other hand, and the economic factors include several variables, and the following is a statement of some of them:
- economic growth rate
- interest rates.
- Inflation rate.
- The work of stock and commodity markets.
- Fiscal and monetary policies.
Socio-cultural factors
Social and cultural factors are the basis for influencing the taste and preferences of consumers, as the consumer buys products that are commensurate with his societal habits and norms; Therefore, the marketing manager must know these habits and customs in order to be able to provide products and design effective marketing campaigns commensurate with the target consumers, and the social and cultural factors are constantly changing, which will require the marketing manager to make adjustments to the product and the marketing campaign to balance between the consumer’s desire and what the institution offers, which leads to the success of the product And the marketing campaign.
Political and legal factors
The institution must work within the modern policy system and adhere to a legal framework, as marketing decisions are affected by political and legal factors. Therefore, many governments have developed a series of legislations to regulate business operations and restrict unfair commercial practices to protect consumers and social interests, which will pose great challenges for business managers. Marketing Therefore, they must realize the approach that the current government is following and the legal provisions that they must adhere to in order to achieve the goals of the institution and reach its goal.
International environment factors
The world has become a small global village by opening the doors of free global trade between the countries of the world within simple restrictions; Thus, the marketer must satisfy the desires and fulfill the requirements of global customers due to liberalization, globalization, privatization, and the proliferation of multinational corporations. This enabled many institutions to operate in several countries. Therefore, the marketer must work locally and think globally, because all institutions are affected by the global economy and political forces through several factors, some of which are listed below:
The work of international agencies and organizations.
performance of multinational enterprises.
Import and export policies for different countries.
Availability of global aid.
International agreements.
Technological factors
Technological factors affect production processes, product quality, and competitiveness, so the marketing manager must have knowledge of modern technology that is specific to his field of work. Here are some important technological factors:
- Convenience and availability of technology.
- replacement costs.
- Innovation opportunities.
- Research and development budget.
Competitive factors
Competitive factors are an important means of increasing the market share and maintaining the relationship with customers by monitoring competitors. By monitoring competitors, the organization can determine and evaluate the success rate and the challenges it will face. Which enables it to know what needs to be added to its operations and how it can work without loss, and the organization can monitor its competitors by using the information collected to develop products or introduce a new product in an effective way that leads to its success.[3]