Marketing Environment Analysis: Stakeholder Decisions Impact

This report provides an in-depth analysis of the marketing environment and its significance to organizations. It begins with an introduction highlighting the importance of adapting to changes in the business environment to maintain competitiveness. The main body of the report explores the marketing concept, emphasizing how businesses identify and fulfill customer needs to generate revenue and gain a competitive edge. It examines the importance of marketing for planning, understanding customer needs, and identifying threats and opportunities. Furthermore, the report analyzes the impact of the marketing environment, including micro and macro factors, on stakeholder decisions. It discusses how changes in customer preferences, competition, economic fluctuations, and social and cultural trends influence business operations and stakeholder choices. The report concludes by summarizing the relevance of the marketing environment, its impact on business growth, and the necessity for stakeholders to adapt their decisions based on market dynamics.

Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
CONCLUSION................................................................................................................................3
REFERENCES APA.......................................................................................................................4

INTRODUCTION
Business environment fluctuates with change in internal or external factors. this is
because organization operate within and it is closely related to its factors. also, it is necessary for
business to remain competitive in market for long term (Campbell, Martin & Fabos, 2018). This
ensures its survival and growth. The marketing environment is composed of several factors that
impacts on business growth and operations directly. This assignment will evaluate relevance of
marketing concept to organization. Moreover, it will analyze impact of marketing environment
on stakeholder decisions.
MAIN BODY
Every business operates in a particular market. for this they require effective marketing
strategies to attract people. Marketing is a concept in which business identifies needs of people
and then produces goods and services to fulfil them (Importance of marketing environment.
2018). This enables them to generate revenue and increase profits. in addition a business gains
competitive advantage through its strategies. they analyze who are their rivals, what products are
available, etc. it gives them insight about market trends. the importance of marketing can be
analyzed as below :-
Essential for planning – it is essential for business to develop a plan through which marketing
activities will be done (Cavusgil & et.al., 2014). It helps managers to develop plans for the
future. It is having a strategic value that enables business to make efforts for long term growth.
Moreover, it allows them to interact and communicate with large number of people. With help of
this they are able to maintain stability in market. It allows business to concern for needs of
people rather than increasing sales and profits. this is beneficial for business as they do not have
to promote products if needs of people are fulfilled. Moreover, it enabled them to build a loyal
customer base.
Understanding customer needs- Marketing enables in understanding needs of customers. this is
done by collecting data and information from the market and analyzing it. also, in depth
information in gather to find out what trends can emerge and how needs of people will change. It
is an integrated concept in which all activities of business are combined together to produce
products as per needs of different markets (Baker & Saren, M. 2016). Through this, business can
identify and evaluate sales of different products in different markets and predict it.
1

Threats and opportunities - Furthermore, it allows firm to analyze change in business
environment and develop strategies to minimize its impact. Apart from it, business is able to
determine competition level and make changes in product in order to gain competitive
advantage. It allows in finding out threats and opportunities so that appropriate strategies can be
developed.
Impact of marketing environment
A business competitive advantage depends upon how they are able to maintain stability
in specific market and how customer needs are been fulfilled. Also, whether stakeholders are
been involved in decision making or not (Hair Jr & et.al., 2015). As discussed above marketing
environment comprises of macro and micro factors. micro exist within business and macro exists
outside. So, any change in these factors impacts upon business to a great extent. The impact can
be either positive or negative. It depends on nature of industry and how they respond towards it.
there are non controllable factors which restricts firm growth. The variables of micro are
suppliers, customer, competitors, etc. whereas macro are demographic, social, economic, etc.
they are drivers of change that can change overall market situation. there is negative impact on
business due to change in it. for instance- any change in taste and preference of customer will
force business to develop new products. Also, if there is rise in new entrants in market, this will
result in increase in competition. Thus, a firm have to develop new strategies on how to retain
their customers. in similar way, if there is fluctuation in economy of nation it will directly affect
business growth (Stern & Porr, 2017). They will have to set prices according to purchasing
power of people. It will be led to decline in their profits. along with this, social and culture
change influences people choice. They prefer to buy those products which are within social
values and norms. so, it differs in different regions. Hence, its impact is also differs. This is the
main reason why evaluation is necessary to identify social and cultural values of particular
region. This is useful in minimizing impact and taking effective decisions.
It does not only impact operations and growth of business but also on decision making by
stakeholders. The decisions are taken by analyzing overall market conditions. Business allows
stakeholders to participate in it because the provide crucial and precise data about market
situation. The stakeholders are suppliers, employees, customers, etc. Moreover, tactics and
methods are developed on how needs will be determined and customer will be attracted. So, any
2

change in marketing environment effects on decisions. For example – if competitors are
increasing then decision can be taken to implement barriers (Baker & Magnini, 2016). Another
situation is if suppliers controls prices of raw materials it will force stakeholders to choose other.
This in result can impact on business operations. however, changing decision is very crucial step
as it can result in downfall or rise in growth. Due to this business make decision on basis of
marketing. This has provided a platform for stakeholders to get involved.
CONCLUSION
Hereby, it can be concluded that relevance of marketing environment is it focuses on
needs of people rather than profits. also, it allows in analyzing markets trends so that changes in
products is done and strategies are developed accordingly. Also, impact of marketing
environment on business is negative. Any change in micro or macro factors influenced market
and effects on business growth. It also forces stakeholders to change their decisions.
3

REFERENCES APA
Books and journals
Baker, M. A., & Magnini, V. P. (2016). The evolution of services marketing, hospitality
marketing and building the constituency model for hospitality marketing. International Journal
of Contemporary Hospitality Management, 28(8), 1510-1534.
Baker, M. J., & Saren, M. (Eds.). (2016). Marketing theory: a student text. Sage.
Campbell, R., Martin, C., & Fabos, B. (2018). Media essentials: A brief introduction.
Bedford/St. Martin's.
Cavusgil, S. T. & et.al., (2014). International business. Pearson Australia.
Hair Jr, J. F. & et.al., (2015). Essentials of business research methods. Routledge.
Stern, P. N., & Porr, C. J. (2017). Essentials of accessible grounded theory. Routledge.
Online
Importance of marketing environment. 2018. [online] Available Through :
<https://www.feedough.com/marketing-environment/ >
4