In general, the forces of competition are imposing a need for more effective decision making at all levels in organizations. Progressive Approach to Modeling: Modeling for decision making involves two distinct parties, one is the decision-maker and the other is the model-builder known as the analyst. Therefore, the analyst must be equipped with more than a set of analytical methods.
Machinery and equipment etc. Economic environment describes the overall economic situation in a country and helps in analysis GNP per capita rate of economic growth, inflation rate, unemployment problems etc.
The physical environment or natural environment involves the natural resources that are needed as inputs by marketers or those that are affected by marketing activities. Environmental concerns have grown steadily in recent years.
Marketers should be aware of trends like shortages of raw materials, increased pollution, and increased governmental intervention in natural resources management.
Potential shortages of certain raw materials, for examples, oil, coal, minerals, unstable cost of energy, increased levels of pollution; changing role of Government in environment protection are a few of the dangers the world is facing on physical environment forces. Other aspects of the natural environment which may increasingly affect marketing include the availability and cost of raw materials, energy and other resources, particularly if those resources and energy come from non-renewable sources.
The technological environment is the most dramatic force now facing our destiny. Technological discoveries and developments create opportunities and threats in the market.
The marketer should watch the trends in technology. The biggest impact that the society has been undergoing in the last few years is the technological advancement, product changes and its effects on consumers.
Technology has brought innumerable changes in human lives, be it in the field of science, medicine, entertainment, communication, and travel or office equipment. Name any field, and one can see changes in product or efficiency and faster services. Technology has released such wonders as penicillin, open-heart surgery and birth control pill.
It has released such horrors as the hydrogen bomb, nerve gas, and the sub-machine gun. Transistors hurt the vacuum tube industry, xerography hurt the carbon paper business, autos hurt the railroads, and television hurt the newspapers.
Instead of moving into the new technologies, many old industries fought or ignored them and their business declined.
Yet it is the essence of market capitalism to be dynamic and tolerate the creative destructiveness of technology as the price of progress. That is understanding this aspect of the marketing environment is much more than simply being familiar with the latest hi-tech innovations.
Technology affects not only the type of products available but also the ways in which people organize their lives and the ways in which goods and services can be marketed. Computer-aided design CAD and computer-aided manufacturer CAM have shortened the time required for new products to reach the market and increased the variety of products that can be produced cost effectively.
Mass production is in standardized models. Computer systems have also contributed substantially to the growth of various forms of direct marketing such as direct mail, direct response marketing etc. The political environment consists of factors related to the management of public affairs and their impact on the business of an organisation.
Political environment has a close relationship with the economic system and the economic policy. Some Governments specify certain standards for the products including packaging.
Some other Governments prohibit the marketing of certain products. In most nations, promotional activities are subject to various types of controls. India is a democratic country having a stable political system where the Government plays an active role as a planner, promoter and regulator of economic activity.
Businessmen, therefore, are conscious of the political environment that their organisation face. Most Governmental decisions related to business are based on political considerations in line with the political philosophy following by the ruling party at the Centre and the State level.
Substantial number of laws have been enacted to regulate business and marketing to protect companies from each other, to protect consumers from unfair trade practices, to protect the larger interests of society against unbridled business behaviour. Changing Government agency enforcement and growth of public interest groups also bring in threats and challenges.
Marketing decisions are strongly affected by laws pertaining to competition, price-setting, distribution arrangement, advertising etc. It is necessary for a marketer to understand the legal environment of the country and the jurisdiction of its courts. The following laws affected business in India: Indian Contract Act 2.
Factories Act 3. Minimum Wages Act 4. Essential Commodities Act 5. The Companies Act 7. Trade and Merchandise Act 8.Marketing Environment (Study Notes) Article shared by: It is possible to develop effective marketing strategies on the basis of analysis.
5. It helps to capitalize the opportunities rather than losing out to competitors. 6. It facilitates to understand the elements of the environment. A brief explanations are given below.
Digital Impact. Proven Experience. Expertise that Helps you Succeed in any In-Store Environment! Back / Forward. Decision making under risk is presented in the context of decision analysis using different decision criteria for public and private decisions based on decision criteria, type, and quality of available information together with risk assessment.
U.S. crude oil and natural gas production increased in , with fewer wells ›. The total number of wells producing crude oil and natural gas in the United States fell to , in , down from a peak of 1,, wells in It's important to note that an agile independent test team works significantly differently than a traditional independent test team.
The agile independent test team focuses on a small minority of the testing effort, the hardest part of it, while the development team does the majority of the testing grunt work.
One of the most important, yet often overlooked areas for the small business owner is the development of a marketing plan. An effective marketing plan will act as a reference document to help you to execute your marketing strategy.