Environmental Scanning

1926 WordsAug 1, 20138 Pages
ENVIRONMENTAL SCANNING Environmental scanning is a process of gathering, analyzing, and dispensinginformation for tactical or strategic purposes. The environmental scanning processentails obtaining both factual and subjective information on the businessenvironments in which a company is operating or considering entering.Environmental scanning is the process in which a firm continually collects andevaluates information about its external environment. There are six main categoriesof environmental data to consider when evaluating marketing decisions. These aresocial forces, demographic forces, economic forces, technological forces, politicaland legal forces, and competitive forces. There are several marketing procedures to consider…show more content…
While some of the demand drivers are off-shoots of favourable growth in the Indian economy, others have come by due to the comprehensive development of the Automobile segment. The key demand drivers for the automobile segment are shown below: Increase in income levels and thus purchasing power: Increase in disposable incomes have made cars affordable to a larger section of the population. While the ratio of car prices to average monthly salaries was around 36 - 48 months in the past, it has dropped significantly to less than 24 months currently. This is also a result of decreasing automobile prices with increasing efficiency in production and stiff competition in the market. • Gradual shift to higher segment passenger vehicles: B and C segments have emerged as high growth segments over the last few years. In 2001-02, the A segment accounted for around 28% of sales while in 2004-05 it accounted for only 14%. At the same time, the demand for premium vehicles has also grown significantly, though the volumes are still low compared with other segments. The trend in segmental sales is poised to undergo a sea change with the launch of high volume selling Tata Nano and other players eyeing to get into the ultra low-cost segment. • Availability of a wider range of products: The number of players as well as the number of products in the auto OEM space has
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