Analysis of Market Environment

Running head: ANALYSIS OF MARKET ENVIRONMENT
ANALYSIS OF MARKET ENVIRONMENT
Name of the Student
Name of the University
Author Note

ANALYSIS OF MARKET ENVIRONMENT
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Table of Contents
Task 1.............................................................................................................................1
Introduction................................................................................................................1
Market environment...................................................................................................1
Market segmentation..................................................................................................4
Value of the market environment and market segmentation on the organization......5
Task 2.............................................................................................................................7
Products and services offered by the organization.....................................................7
Impact of the products and services on the future marketing strategy.......................8
Conclusion..................................................................................................................9
References....................................................................................................................10

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Task 1
Introduction
The external environment of a business organization mainly consists of the various
factors in the industry which can affect its operations. The success of business depends on the
external or the market environment and the ways by which these factors are able to influence
the business. The procedures and policies of the business are affected by the environment in
which it has the operations. The industry or sector in which the organization operates also
affects the profitability and revenues of the company. The organizations thereby need to react
or act in a timely and appropriate manner to changes that take place in the environment of the
business (Andreeva & Kianto, 2016).
The report will be based on the detailed analysis of the market environment and
segmentation process of the market. The products and services that are offered by the
organization will also be analysed in the report. The organization that is taken into
consideration for this analysis is The Corcoran Group which is s real estate based
organization operating in the United States of America.
Market environment
The operations of a firm are affected by various factors. The factors that are able to
affect the organizations to a large extent are a part of the market environment. These factors
are controlled by organizations in the different sectors. The organizations need to understand
that the market environment contains both the positive and negative factors which can affect
the business organizations. The marketing environment of the company consists of the forces
and actors outside the marketing department (Chen, Delmas & Lieberman, 2015). The
environment of the company also helps in creating positive relationships with the customers.
The operations of the firm are surrounded different external and internal factors that are able

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to increase the capability of the firm to improve its operations. The internal environment
related to the marketing in the firm comprise of major factors like, the employees, the capital
assets, the organizational structure and the services and products (Cohen & Amorós, 2014).
The external marketing related environment of the company is based on both the
macro environment and the micro environment. These factors are not controlled by the firm,
however, the decisions that are taken by the marketers are highly influenced by these factors.
The micro environmental factors of the market are mainly based on the industry in which the
organizations operate (Durand, Grant & Madsen, 2017). The various factors that are a part of
the micro environment of the organization are as follows,
The suppliers – The business operations are highly dependent on suppliers and
the raw materials that are supplied by them. The suppliers of the company
have the power when they are the only in the industry and they hold the
position of the largest supplier in the industry.
The resellers – The success of organizations is mainly based on the resellers of
the goods that are manufactured by them. The different forces in this case
include, the wholesalers and the retailers (Engert, Rauter & Baumgartner,
2016).
The customers – The success of the strategy that is formulated by the
organization is mainly based on the customers who are the receivers of the
finished products of the company. The customers thereby play the most
important role in the establishment of the marketing strategy of the company
(Frynas & Mellahi, 2015).
The competition – The levels of competition that is present in the market is
also based on the services and products that are offered by the company. The
uniqueness of the products is a major factor which affects the competition that