Discuss Importance / Need of Marketing Environment Analysis

Analysis of the marketing environment is of great importance to marketers because of the following reasons-

1) The impact of the environment on the organisation is enormous. To understand the trends and events in the market and successfully analysing the data to produce a product of customers need.

2) The changes in the environment affect the functioning of all the departments. The organisations who constantly screen the environment become future ready to overcome the challenges from environmental changes.

3) A change in any one factor of the environment can have a direct or indirect impact on all the functions. For example, a change in taxes by the government will affect the finance department, but also other functions like supply, production, etc. Hence its study becomes very critical.

4) The organisations list out the strengths and weaknesses which are internal to the organisation. It helps in analysing the efforts to be put in to upskill the staff, expectations of the suppliers, distributors, etc.

5) It helps in analysing the opportunities and threats to the organisation.

6) It helps the organisation produce a right product of customers’ choice in line with the trends, culture, climate, etc.

7) It gives an organisation a competitive advantage as analysing the competitors is part of environment scanning. A bright marketer will gather all the information he/she can get to outperform their products in the market.

By constantly analyzing the changes that are occurring in the Marketing Environment, organisations are better prepared to –
• Adapt to change,
• Prepare long-range strategy,
• Meet the needs of customers,
• Forecast tomorrow’s needs, and
• Compete with the intense competition present in the global marketplace.