We explain below all these factors determining external macro-environment: Economic environment includes the type of economic system that exists in the economy, the nature and structure of the economy, the phase of the business cycle for example, the conditions of boom or recessionthe fiscal, monetary and financial policies of the Government, foreign trade and foreign investment policies of the government.
Definition[ edit ] Marketing is defined by the American Marketing Association as "the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. From a sales process engineering perspective, marketing is "a set of processes that are interconnected and interdependent with other functions" of a business aimed at achieving customer interest and satisfaction.
The Chartered Institute of Marketing defines marketing as "the management process responsible for identifying, anticipating and satisfying customer requirements profitably.
However, because the academic study of marketing makes extensive use of social sciencespsychologysociologymathematicseconomicsanthropology and neurosciencethe profession is now widely recognized as a science,  [ not in citation given ]allowing numerous universities to offer Master-of-Science MSc programs.
Concept[ edit ] The 'marketing concept' proposes that in order to satisfy the organizational objectives, an organization should anticipate the needs and wants of potential consumers and satisfy them more effectively than its competitors.
Given the centrality of customer needs and wants in marketing, a rich understanding of these concepts is essential: Something necessary for people Business environment 2 live a healthy, stable and safe life.
When needs remain unfulfilled, there is a clear adverse outcome: Needs can be objective and physical, such as the need for food, water, and shelter; or subjective and psychological, such as the need to belong to a family or social group and the need for self-esteem.
Something that is desired, wished for or aspired to. Wants are not essential for basic survival and are often shaped by culture or peer-groups. When needs and wants are backed by Business environment 2 ability to paythey have the potential to become economic demands.
Marketing research, conducted for the purpose of new product development or product improvement, is often concerned with identifying the consumer's unmet needs. A product orientation is based on the assumption that, all things being equal, consumers will purchase products of a superior quality.
The approach is most effective when the firm has deep insights into customers and their needs and desires derived from research and or intuition and understands consumers' quality expectations and price they are willing to pay.
For example, Sony Walkman and Apple iPod were innovative product designs that addressed consumers' unmet needs. Although the product orientation has largely been supplanted by the marketing orientation, firms practising a product orientation can still be found in haute couture and in arts marketing.
Consequently, this entails simply selling existing products, using promotion and direct sales techniques to attain the highest sales possible. A meta analyses  has found that the factors with the greatest impact on sales performance are a salesperson's sales related knowledge knowledge of market segments, sales presentation skills, conflict resolution, and productsdegree of adaptiveness changing behaviour based on the aforementioned knowledgerole clarity salesperson's role is to expressly to sellcognitive aptitude intelligence and work engagement motivation and interest in a sales role.
Evaluate the advantages Business Environment 2. Q1. Discuss how the environment acts does as a stimulant to business. Analyze why business often does little for the preservation of physical environment despite the fact that it is significant for business activity. We deliver postgraduate business education offering one of the world's best MBA programmes, Masters and PhD degrees, plus short courses for executives. The environmental performance of regulated businesses across the country continues to improve, according to latest figures released from the Environment Agency (EA) today.
A production orientation may be deployed when a high demand for a product or service exists, coupled with certainty that consumer tastes and preferences remain relatively constant similar to the sales orientation.
The so-called production era is thought to have dominated marketing practice from the s to the s, but other theorists argue that evidence of the production orientation can still be found in some companies or industries. Specifically Kotler and Armstrong note that the production philosophy is "one of the oldest philosophies that guides sellers Market orientation The marketing orientation is perhaps the most common orientation used in contemporary marketing.
It is a customer-centric approach that involves a firm basing its marketing program around products that suit new consumer tastes. A firm in the market economy can survive by producing goods that persons are willing and able to buy.
Consequently, ascertaining consumer demand is vital for a firm 's future viability and even existence as a going concern. In this sense, a firm's marketing department is often seen as of prime importance within the functional level of an organization.
Information from an organization's marketing department would be used to guide the actions of other department's within the firm.
As an example, a marketing department could ascertain via marketing research that consumers desired a new type of product, or a new usage for an existing product. The production department would then start to manufacture the product, while the marketing department would focus on the promotion, distribution, pricing, etc.
Additionally, a firm's finance department would be consulted, with respect to securing appropriate funding for the development, production and promotion of the product.
Inter-departmental conflicts may occur, should a firm adhere to the marketing orientation. Production may oppose the installation, support and servicing of new capital stock, which may be needed to manufacture a new product. Finance may oppose the required capital expenditure, since it could undermine a healthy cash flow for the organization.
As no-one has to buy goods from any one supplier in the market economy, firms must entice consumers to buy goods with contemporary marketing ideals.
Societal marketing A number of scholars and practitioners have argued that marketers have a greater social responsibility than simply satisfying customers and providing them with superior value. Instead, marketing activities should strive to benefit society's overall well-being.
Marketing organisations that have embraced the societal marketing concept typically identify key stakeholder groups such as employees, customers, and local communities.Learn about Samsung business solutions, providing technology that caters to your industry and enables mobility, connectivity and exceptional performance.
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A marketing orientation has been defined as a "philosophy of business management." or "a corpora A firm employing a product orientation is mainly concerned with the quality of its own product.
The business environment was very professional and amazing and made everyone feel as though they were a part of something special. 20 people found this helpful You should try to make sure your workers are in a good business environment so that they will be productive.
Since its founding in , Yale University has been dedicated to expanding and sharing knowledge, inspiring innovation, and preserving cultural and scientific information for future generations. Sep 07, · The World Bank Group’s Business Environment team, part of the Macroeconomics, Trade and Investment (MTI), helps developing country governments to improve policy formulation, enhance the quality of government-to-business services, and to sustain implementation of reforms.