Changing Market Environment

1642 Words Jul 12th, 2011 7 Pages
Changes in the Marketing Environment and its Implications

The word “Marketing” refers to an activity that is strategically concerned with the management of relationship among an organization and environment. Environment could be described as an internal and external condition to an organization. Internal Environment consists of situational factors that are present within the organizational boundaries whereas external environment consists of any factors or conditions that are not under the control of an organization. Internal Environment creates strengths or weaknesses for a firm, however external environment may create opportunities or threats. Over the past some years, a significant change in external environment has been happened. In
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They were more rigid. However, today consumers want change, they want to experience new things, and much more flexible. These are some of the reasons of fashionisatin and erosion of brands. All these things are demanding more change in the marketing environment.

Earlier, all businesses produce goods and then market them broadly to the general public without considering the needs of specific consumers in the market. However, in the current situation companies are adopting more targeted approach. In this regard, they advertise and market their product primarily to their target market. Companies now are increasing their reliance on niche marketing and specialization which is also refers to micro market. This phenomenon of micro market is creating change in the marketing environment and possessing challenge to the marketer.

Change in the marketing environment also comes from the product life cycle. As product moves from one stage to another, a change occurs. In the earlier and middle stages of the product, companies try to differentiate their products which help them to charge premiums from the customers. However, in the later stages of the product, commoditization happens. Commoditization is a concept which reduces the differentiation. Reduction in the differentiation would results in the shrinkage of profit margins. Generally, companies do not want to commoditize and strives to prolong the middle