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newspapers and magazines that can publish articles of interest regarding the company and editorials that may influence customers' opinions. Government public can affect the company by passing legislation and laws that put restrictions on the company's actions. Citizen-action public include environmental groups and minority groups and can question the actions of a company and put them in the public spotlight. Local public are the neighborhood and community organizations and will also question a company's effect on the local area and the level of responsibility of their actions. The general public can affect the company as any change in their attitude, whether positive or negative, can cause sales to go up or down because the general public is often the company's customer base. And finally those who are employed within the company and deal with the organization and construction of the company's product.
171:
management, finance, research and development, purchasing, Business operations and accounting. Each of these departments influences marketing decisions. For example, research and development have input as to the features a product can perform and accounting approves the financial side of marketing plans and budget in customer dissatisfaction. Marketing managers must watch supply availability and other trends dealing with suppliers to ensure that product will be delivered to customers in the time frame required in order to maintain a strong customer relationship. These internal factors can be controlled by the organization to a certain extent. Internal environmental factors are in control of business organization.
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reseller markets. The consumer market is made up of individuals who buy goods and services for their own personal use or use in their household. Business markets include those that buy goods and services for use in producing their own products to sell. This is different from the reseller market which includes non-business activities that purchase goods to resell as is for a profit. These are the same companies mentioned as market intermediaries. The government market consists of government agencies that buy goods to produce public services or transfer goods to others who need them. International markets include buyers in other countries and includes customers from the previous categories.
662:. Another barrier to environment scanning is the interpretation of information that has been collected. Undetermined sources can cause confusion and irrelevance to the process. Current research shows that the analysis of the market environment has challenges to predict or foresee upcoming market changes. The reason is that market scanning frameworks often suggest to observe a broad range of categories without offering detailed guidelines for what aspects to emphasize or ignore. In consequence, even firms that scan their market environment continuously get blindsided by disruptions.
438:), which contributes to the development of national advantages of competition, is relevant. Like on the micro-level, on the meso-level new patterns of organisation and steering must be developed. The state shall give impulses and mediate between enterprises, associations, science and intermediate institutions. "The design of locations becomes like that a continuous process on the basis of the efforts of enterprises, science and state as well as of the determined cooperation of private and public agents".
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the business environment they are in. Environmental scanning not only helps the business find its strengths in its current environment but it also finds the weakness of competitors, identifies new markets, potential customers and up and coming technological platforms and devices that can be best used to sell/market the product or service. Environmental scanning helps a business improve their decision-making process in times of risk to the external and internal environments the business is in.
36:
205:. Physical distribution firms are places such as warehouses that store and transport the company's product from its origin to its destination. Marketing services agencies are companies that offer services such as conducting marketing research, advertising, and consulting. Financial intermediaries are institutions such as banks, credit companies and insurance companies.
291:. As these markets develop it can create new markets and new uses for products. It also requires a company to stay ahead of others and update their own technology as it becomes outdated. They must stay informed of trends so they can be part of the next big thing, rather than becoming outdated and suffering the consequences financially.
318:. It is important for marketers to be aware of these restrictions as they can be complex. Some products are regulated by both state and federal laws. There are even restrictions for some products as to who the target market may be, for example, cigarettes should not be marketed to younger children. There are also many restrictions on
326:. As laws and regulations change often, this is a very important aspect for a marketer to monitor. As laws and regulations change often, they create barriers that can hugely influence the way in which companies can market their business across the digital community in particular. When conducting business in the
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The first step of the environmental scanning process requires the identification of the needs and the issues that have occurred that caused the organization to decide an environmental scanning is required. Before starting the process there are several factors that need to be considered which include
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Partners include marketing intermediaries, financiers, and advertising agencies. Marketing intermediaries refers to resellers, physical distribution firms, marketing services agencies, and financial intermediaries. These are the people that help the company promote, sell, and distribute its products
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External macro environment – larger societal forces that affect the survival of the organisation, including the demographic environment, the political environment, the cultural environment, the natural environment, the technological environment and the economic environment. The analysis of the macro
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Environmental scanning is an ongoing process and organizations are always refining the way their particular company or business goes through the process. Environmental scanning reinforces productive strategic plans and policies that can be implemented to make the organization get the maximum use of
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When looking at the weaknesses of the organization's placing in the current business environment a formal environmental scanning is used. A common formal environmental scanning process has five steps. The five steps are fundamental in the achievement of each step and may develop each other in some
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of potential customers and the ways in which people spend their money. Within this area are two different economies, subsistence and industrialized. Subsistence economies are based more in agriculture and consume their own industrial output. Industrial economies have markets that are diverse and
212:
The final aspect of the microenvironment is public, which is any group that has an interest in or effect on the organization's ability to meet its goals. For example, financial public can hinder a company's ability to obtain funds affecting the level of credit a company has. Media public include
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When dealing with the marketing environment it is important for a company to become proactive. By doing so, they can create the kind of environment that they will prosper in and can become more efficient by marketing in areas with the greatest customer potential. It is important to place equal
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The final aspect of the macro-environment is the social environment, which consists of institutions and basic values and beliefs of a group of people. These values can also be further categorized into core beliefs, which passed on from generation to generation and very difficult to change, and
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There are a number of common approaches how the external factors, which are mentioned in the definition of Kroon and which describe the macro environment, can be identified and examined. These factors indirectly affect the organization but cannot be controlled by it. One approach could be the
208:
Competitors are also a factor in the micro-environment and include companies with similar offerings for goods and services. To remain competitive a company must consider who their biggest competitors are while considering its own size and position in the industry. The company should develop a
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The micro-environment consists of customers, partners, and competitors. The most important aspect of micro-environment is the customer market. There are different types of customer markets include consumer markets, business markets, government markets, globalization international markets, and
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The internal environment "consists of those relevant physical and social factors within the boundaries of the organization or specific decision unit that are taken directly into consideration in the decision-making behavior of individuals in that system". This includes all departments such as
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received through the scanning process can be disadvantageous when attempting to translate and make sense of the information as some information may get overlooked or just missed entirely. Because of the volume of information its hard to decipher what is important or not so management and key
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When scanning the environment, the organization need to look at all the influences of the company. The scanning process makes the organization aware of what the business environment is about. It allows the organization to adapt and learn from that environment. When the company responds to an
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The step four of the environmental scanning process is all about the communication of the results obtained in step three. The appropriate decision makers analyze the translated information of the potential effects of the organization. All the information is presented in a simple and concise
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The natural environment is another important factor of the macro-environment. This includes the natural resources that a company uses as inputs that affects their marketing activities. The concern in this area is the increased pollution, shortages of raw materials and increased governmental
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The macro-environment refers to all forces that are part of the larger society and affect the micro-environment. It includes concepts such as demography, economy, natural forces, technology, politics, and culture. The purpose of analyzing the macro marketing environment is to understand the
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The external environment "consists of those relevant physical and social factors outside the boundaries of the organization or specific decision unit that are taken directly into consideration." The external environment can be further broken into micro and macro environments.
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and employment. It is key for a marketer, especially in a digitally-dominated market, to anticipate demand in order to capitalize on potential market growth. Technology has developed to the extent where purchase patterns can be analysed in order to forecast future demand.
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intervention. As raw materials become increasingly scarcer, the ability to create a company's product gets much harder. Also, pollution can go as far as negatively affecting a company's reputation if they are known for damaging the environment. The last concern,
260:(also known as zoomers), who are born between 1997 and 2012. Each classification has different characteristics and causes they find important. This can be beneficial to a marketer as they can decide who their product would benefit most and tailor their
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The factors which need to be considered for environmental scanning are events, trends, issues and expectations of the different interest groups. Issues are often forerunners of trend breaks. A trend break could be a value shift in
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With all the information obtained from steps three and four, step five is all about making informed decisions. Management creates appropriate steps that will position the organization in the current business
147:. The business environment has been defined as "the totality of physical and social factors that are taken directly into consideration in the decision-making behaviour of individuals in the organisation."
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The third steps analyzing all the information that the business has collected. When analyzing the information organizations are made aware of the trends or issues that the organizations may be influenced
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refers to studying human populations in terms of size, density, location, age, gender, race, and occupation. This is a very important factor to study for marketers and helps to divide the population into
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The meso-level is settled between the macro- and the micro- level. This field deals with the design of the specific environment of the enterprises. It is of decisive importance that the layout of the
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to attract that segment. Demography covers many aspects that are important to marketers including family dynamics, geographic shifts, workforce changes, and levels of diversity in any given area.
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secondary beliefs, which tend to be easier to influence. As a marketer, it is important to know the difference between the two and to focus your marketing campaign to reflect the values of a
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The second step of the scanning process is gathering the information. All the needs of the organization are translated into required pieces of information that will be useful in the process.
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environmental scanning process it allows them to easily respond and react to any changes to both the internal and external business environment. Environmental scanning is a useful tool for
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information may be missed. Another way vital information can be missed is if the information is unordered and unorganized. Due to ever changing environment all information runs under a
342:. With entering into an age where technology has a key role in the forming of social beliefs and values, cultural diversity has developed within the world of digital communities. (i.e.
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The technological environment is perhaps one of the fastest changing factors in the macro-environment. This includes all developments from antibiotics and surgery to automobiles and
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and competitors representing the micro environment of a company are analyzed within the industry analysis. Older sources suggest environmental scanning as an alternative name for
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the purpose of the scanning, who will be participating in the processes and the amount of time and the resources that will be allocated for the duration of the scanning process.
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In order to understand the different spending patterns, marketers need to also take into consideration about the development of digital technology and its effect on
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environment better and to adapt to the social environment and change through the marketing effort of the enterprise to achieve the goal of the enterprise marketing.
354:). These digital communities consist of many groups of demographics that involve different levels of Internet usage and versatile behaviour with online purchasing.
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marketing environment is to better understand the environment, adapt to the social environment and change, so as to achieve the purpose of enterprise marketing.
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The sources used for market learning can be split into two categories: external and internal information sources. The external sources can emerge from
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to final buyers. Resellers are those that hold and sell the company's product. They match the distribution to the customers and include places such as
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carry many different types of goods. Each is important to the marketer because each has a highly different spending pattern as well as different
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as it helps them to create and develop the aims and objectives of the company which assists with the production of the company or organization.
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Holm, M, Kumar, V & Rohde, C 2012, 'Measuring size of profitability in complex environments: an interdisciplinary contingency framework',
244:. An example of demography is classifying groups of people according to the year they were born. These classifications can be referred to as
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Environmental scanning isn't always as effective or useful in an organizational setting for several reasons. The volume of the
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that might be permanent or a paradigm change. Issues are less deep-seated and can be 'a temporary short-lived reaction to a
629:. Internal information comes from within the organization. Some examples of internal information include internal reports,
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434:. In addition, the design of the trade policy and systems of rules (for example: environmental norms and technical safety
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Internal environment – the internal elements of the organisation used to create, communicate and deliver market offerings.
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330:, the government is committed to ensuring the best possible platform to start and grow a UK digital business, therefore
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512:(HS), whereby newer sources rather see environmental scanning along with trend monitoring, trend research and
994:"The cultural contradictions of managing change: using horizon scanning in an evidence-based policy context"
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Duncan, R.B., 1972. Characteristics of organizational environments and perceived environmental uncertainty.
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can make it increasingly harder for a company to fulfill their goals as requirements get more stringent.
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Varadarajan, P.J.; Yadav, M.S. (2002). "Marketing strategy and the internet: An organising framework".
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terms that refer to factors and forces that affect a firm's ability to build and maintain successful
563:'. A trend can be defined as an ‘environmental phenomenon that has adopted a structural character'.
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emphasis on both the macro and micro environment and to react accordingly to changes within them.
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becomes a vital force in the management and control of the growth of the internet and its usage.
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Costa, Jorge (1995). "An
Empirically- based Review Of The Concept Of Environment Scanning".
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1033:"Joint horizon scanning: identifying common strategic choices and questions for knowledge"
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Greg
Elliott, Sharyn Rundle-Thiele, David Waller, Sandra Smith, Liz Eades, Ingo Bentrott.
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External micro environment – Local forces that affect its ability to serve its customers.
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Another aspect of the macro-environment is the economic environment. This refers to the
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1328:"Market-scanning and market-shaping: why are firms blindsided by market-shaping acts?"
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Diaz Ruiz, Carlos A.; Baker, Jonathan J.; Mason, Katy; Tierney, Kieran (2020-06-15).
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Albright, Kendra (May–June 2008). "Environmental
Scanning: Radar For Success".
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Environmental scanning can be defined as 'the study and interpretation of the
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1180:"Exploring the role of market learning capability in competitive strategy"
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500:. Consequently, there exist corresponding analyses on the micro-level.
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823:"Defining generations: Where Millennials end and Generation Z begins"
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Factors affecting organization in Macro environment are known as
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29:
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which stands for
Strength, Weakness, Opportunity and Threat.
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International
Journal of Contemporary Hospitality Management
934:
Digital
Marketing: strategy, implementation and practice
910:
Digital
Marketing: strategy, implementation and practice
800:(5th ed.). NSW: Pearson Education Inc. p. 80.
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770:"What is marketing environment? Definition and meaning"
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systems) and of the sector policies, especially of the
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Kroon, J. (1995), "General
Management" (2nd Edition),
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Dillerup, R., Stoi, R. (2006), "Unternehmensführung",
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The three levels of the environment are as follows:
60:. Unsourced material may be challenged and removed.
1270:"Word-of-Mouth Communication and Social Learning"
965:(2006), Principles of Marketing (Version 12/E).
480:complete the global environmental analysis. The
1332:Journal of Business & Industrial Marketing
1145:Journal of Business & Industrial Marketing
932:Chaffney, Dave; Ellis-Chadwick, Fiona (2012).
907:Chaffney, Dave; Ellis-Chadwick, Fiona (2012).
8:
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710:: CS1 maint: multiple names: authors list (
209:strategic advantage over their competitors.
849:Journal of the Academy of Marketing Science
784:Journal of the Academy of Marketing Science
310:, and groups that influence or limit other
464:is one of the essential components of the
256:, who are born between 1981 and 1996, and
1268:Ellison, G.; Fudenberg, D. (1995-02-01).
120:Learn how and when to remove this message
382:, whereas other variations JIT) include
1219:Diaz Ruiz, Carlos Adrian (2013-09-01).
670:
390:factors. A second approach is to use a
302:The political environment includes all
1141:"Managing the market learning process"
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617:or from verbal communication such as '
252:, who are born between 1965 and 1980,
248:, who are born between 1946 and 1964,
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992:Schultz, Wendy L. (1 January 2006).
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535:events and trends which influence a
58:adding citations to reliable sources
1221:"Assembling market representations"
1031:van Rij, Victor (1 February 2010).
1274:The Quarterly Journal of Economics
25:
696:Kotler, Armstrong, Philip, Gary.
1178:Weerawardena, Jay (2003-04-01).
1101:(3): 38–45 – via ProQuest.
982:, p. 179 et seq.; p. 187 et seq.
684:Administrative science quarterly
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45:needs additional citations for
1095:Information Management Journal
786:, vol. 40, no. 3, pp. 387-401.
448:environmental horizon scanning
1:
1185:European Journal of Marketing
1139:Day, George S. (2002-07-01).
466:global environmental analysis
936:. Harlow: Pearson Education.
446:Not to be confused with the
913:. Harlow: Pearson Education
18:Microenvironment (business)
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883:"UK Digital Strategy 2017"
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1344:10.1108/JBIM-03-2019-0130
1198:10.1108/03090560310459023
1157:10.1108/08858620210431651
1126:10.1108/09596119510101877
1037:Science and Public Policy
1010:10.1108/14636680610681996
949:Retail Product Management
633:, internal databases and
492:, international markets,
314:and individuals within a
1239:10.1177/1470593113487744
1049:10.3152/030234210X484801
796:Armstrong, Gary (2012).
609:Information sources used
557:technological innovation
516:as predecessors for HS.
478:environmental assessment
470:Environmental monitoring
861:10.1177/009207002236907
798:Principles of Marketing
698:Principles of Marketing
514:strategic early warning
430:, are oriented towards
404:physical infrastructure
282:government intervention
732:Marketing, 4th Edition
462:Environmental scanning
442:Environmental scanning
274:distribution of wealth
145:customer relationships
456:environmental studies
450:, the application of
1076:Pearson South Africa
961:Kotler, Phillip and
951:. London: Routledge.
578:strategic management
175:External environment
166:Internal environment
137:business environment
69:"Market environment"
54:improve this article
947:Varley, R. (2001).
827:Pew Research Center
332:Internet Governance
320:subliminal messages
308:government agencies
1384:Futures techniques
1379:Marketing strategy
482:global environment
416:power distribution
133:Market environment
967:Pearson Education
963:Gary M. Armstrong
821:Dimock, Michael.
625:, and commercial
561:social phenomenon
486:macro environment
454:in the domain of
428:technology policy
366:, which includes
217:Macro environment
184:Micro environment
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