The spread of consumerism, the rise of the middle class with high disposable income, the flashy lifestyles of people working in software, telecom, media and multinational companies seem to have changed the socio-cultural scenario and this need to be understood deeply. Technology: Technological factors represent major opportunities and threats which must be taken into account while formulating strategies.
Technological breakthroughs can dramatically influence the organizations products, services markets, suppliers, distributors, cornpetitors, customers manufacturing processes, marketing practices and competitive position. Technological advancements can open up new markets, change the relative position of an industry and render existing products and services obsolete.
Technological changes can reduce or eliminate cost barriers between businesses, create shorter production runs. create shortages in technical skills and result in changing values and expectations of customers and employees. Nature: Natural conservation and protection is an issue, which as gained prominence because of deteriorating balance which is threatening the sustainability of life.
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Largely, business is also held responsible for such situations as emissions from industries polluting the air, excessive chemical affluents drained out in water making it poisonous and unfit for use, usage of bio non-degradable resources affecting the bio-chain adversely and exposure of employees to hazardous radiations bring their life in danger. All these have been taken very seriously by different stakeholders in the society including the government and legislations and movements are creating pressure for an environment friendly business.
It is important for the organizations to take care of the natural resources as well. Strategic Placement Factors The data for the global stand of the product depends on to the market, product, competition, distribution and macro-environment.
Market Situation: Data on the target market served like the size and growth of the market for the past several years, and customer needs, perceptions and buying behavior trends. • Product Situation: Data on sales, prices, contribution margins and net profits for each major product for the past several years.
Competitive Situation: Data on major competitors in respect of their size, goals, market share, product quality, marketing strategies and other relevant characteristics that are likely to help in understanding and predicting their behavior.
Distribution Situation: Data on the number and value of the units sold in each distribution channel together with the changes that are taking place in the power and importance of each channel and also the changes in the trade relations mix like prices trade terms, etc. required to motivate channel members.
Macro-environment Situation: Data on changing trends in respect of political, legal, technological, demographic, economic and socio-cultural factors. The marketer identifies the strengths and weaknesses as well as the opportunities and threat which exist in the environment in relation to the company’s products. The data required to be collected in respect of the current marketing situation helps in identifying major strengths, weaknesses, opportunities and threats.
The identification of these issues in turn helps in arriving at the decisions about the objectives. These objectives will guide the subsequent search for strategies and action programmes. These objectives may be in terms of - 1. Financial objectives (long-run rate of return on investment; profits and cash-flow during the current year) 2. Marketing objectives (sales revenue, sales volume, market share, average realized price; consumer awareness, distribution coverage, etc. ) to achieve the financial objectives.
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