Components Of Marketing Research : External Environment

The external environment of an organization represents factors outside the company that affect the company's ability to function. The business cannot control these aspects but can answer to these changes if it needed. Of course the main problem for business managers is to manage to respond early to these changes in the external environment, but this depends on how soon any change is identified. Most of external environmental factors for example, economic conditions, are reported daily in the media; managers have a wealth of information with the help of which they can develop strategic plans. Nevertheless, some external factors are difficult to identify, especially when they are changing very slowly or hidden from

When manipulating a business’s strategy, it is important to focus on the external factors in the environment. An external analysis is where a business conducts environmental scanning that present a company with the key external forces influencing the organization. The facets of external forces examined are the business environment, remote environment, or the competitive environment. A business environment is all of the external factors in the general environment that a firm cannot control, but can affect their strategy. The remote environment is the forces that affect most firms. Lastly, a competitive environment is the firm’s specific industry and its entirety. The external analysis is pertinent to a company called Dick’s Drive- In; without it, Dick’s would not be a thriving popular business today.

socio-demographic: refers to a group defined by its sociological and demographic characteristics. Sociodemographic groups are used for analyses in the social sciences as well as for marketing and medical studies.

External environment consists of forces that directly or indirectly influence organization’s business activities. The actors and forces outside marketing that affect management’s ability to build and maintain successful relationship with target customers.

Most of the businessmen consider market research the key to a successful business empire. It is quite essential to conduct a thorough research to analyze the prospects of an existing or new product. A well-conducted research proves fruitful in evaluating the business situations, the potential sales of a product, prospective customers and so forth.

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

External Environment: The main external elements need to be observed and established in and around the organization which will affect the organization.

An external market research analysis can be defined as the process of scanning and evaluating an organization’s various external environmental sectors to determine positive and negative trends that could impact organizational performance ("External," n.d.). The goal of external market research analysis is to explore any opportunities and threats existing in the environment. Opportunities are favorable to the condition in an organization’s environment that can produce rewards if use properly. It is an opportunity that the organization or company wants to benefit from them. Threats are barriers that prevent an organization from achieving their goals and

External environment is quite important for the any company, because it creates the conditions that the organization need to run the business in. In order to develop company strategy successfully, the external environment need to be analyzed properly. One of the best techniques to do that is Five Porter’s Forces analysis.

The internal environment analysis focuses on current marketing strategy and performance, present and anticipated organizational resources, current and projected cultural and structural issues, and the customer environment. On the other hand, the external environment addressed competition, economic growth and stability, political trends, Legal and Regulatory Issues, technological advancements, sociocultural trends, and the SWOT analysis.

In today's highly competitive market, businesses must be aware of the environment in which they operate and the external factors that influence them. These factors can affect the main internal factors of the business and its objectives or marketing strategies.

An analysis of the external environment includes the factors in a business’s external environment about a business's industry, competition, and political and social environments, and affects the firm’s strategy (Aaker, 2001).

External Environment - Conditions, entities, events, and factors surrounding an organization that influence its activities and choices, and

There are two kinds of external marketing environments; micro and macro. These environments’ factors are beyond the control of marketers but they still influence the decisions made when creating a strategic marketing strategy.

Customers who are with low income native would like to buy low and medium cost houses. Customers who are with high income and from Kuching or surrounding towns would like to buy the medium and high cost houses. Customer who are business investors would like to buy the commercial properties and any cost of houses.