Linkage among Environmental Opportunity, Competency and Organizational Success - Essay Example

Linkage among Environmental Opportunity, Competency and Organizational Success The various marketing environmental factors should be applied in order to compete with other business organization and this is the only way that guarantees the success of a business organization. This study will go through the six environmental factors i.e. economic environment, demographic environment, social-cultural unit and technological environment showing how they go hand in hand with competency and business success . Any business organization must not ignore the above marketing environmental factors when coming up with the product price of the product, promotion strategies and distribution channels. 1 The technological environmental represent the application to marketing of knowledge based on discoveries in science, inventions and also innovations new technology will results in new goods and services for consumers. Improved existing products better customer service and care and often lower prices through the development of more cost-efficient production and distribution methods (Louis, 1992) Though technology can quickly make products obsolete for example calculators wiped out the markets for slide rulers. It can quickly open up new marketing opportunities. It has led to spawning of new industries for example computers, laser and xerography industries. What might we do Marketing managers might closely monitor the technological environment for a number of reasons. This may be the means by which a firm introduces major products breakthrough giving of a competitive edge. For example after years of technological research, Procter and Gamble scientist succeeded in perfecting a formula for a combination of shampoo and conditioner which was introduced in the market place as part plus, this brad become the leading shampoo in the united states and captured twelve percent of the market keeping in mind that it competes with more than 1,100 other products. 2 What do we do best By the application of new technology marketing managers have greatly improved services to their customers. Electronic communication has brought consumers the convenience of in home shopping and also twenty-four hour banking at the automated teller machines. The more competent he becomes in the organizational competent. According to Louis (1992) new technology can greatly help marketing managers in making decisions that will result in increased productivity and overall efficiency in its operations. Computer aided designs super workstations, and computer aided manufacture tends to speed up the process of bringing new products to the market. Designing products by computers allow firms to thorough test products for potential problems, which increase their competitive ability by eliminating costly errors before the products go into manufacturing. This not only assures business survival but also ensures the continued success of a business. Computerized mapping systems will give marketing managers instant geographic and customers information. Computer maps will also help markets in targeting markets, planning advertising analyzing competitors and distributing their products. Advancement in communications technology will help creating computer networks that allow marketer to share information with dealer's distributors and co-workers in such areas as finance, research and development. Laptop computers and cellular phone technology will definitely increase sales force productivity since the salesman will do less paperwork hence spending were time with clients and prospects. Technology can not be separated with competency and success of the business since for any organization undertaking its business technological rate and level has had great implications especially in areas of new products development customer satisfaction and also its role in controlling and standardizing quality of products. 3 Marketing managers understands that economic environmental influence consumer buying power so as to achieve success. The health of an economy will influence consumer spending and what they buy. The other way is also true, marketing economic environment consists of those factors that influence consumer buying power and marketing strategies, they include the stages. Prosperity, recession, depression and recovery with consumer buying differing in each stage and marketing managers must adjust their strategies according to the business cycle. marketing managers should expand products lines increasing promotional efforts and expand distribution to raise market share in times of prosperity, during recession marketing managers should lower prices and increase promotional outlays to stimulate demand e.g during a recession in US Campbell soup company introduced a new budget frozen food live, and holiday inn world wide developed budget priced holiday express hotels which ensured its survival. Consumer spending it lowest during deprecation while in the recovery stage, the economy emerges from a recession to prosperity a move that increases consumer's purchasing power. Inflation devalues a person's money in terms of what it can buy resulting in reduced consumer buying. Unemployment rises during recessions and declines in the recovery and prosperity stage. Like inflation unemployment leads to reduced consumer behaviour because the unemployment has less income to spend. Shortages of resources calls for changing the thinking by marketing managers they can use strategies like de-marketing which is an approach of reducing consumer demand for a product to a level that a firm can reasonably supply. Oil companies for example, publicize tips on how to cut gasoline consumption and utility companies encourage home owners to install more insulation to reduce heating costs. Business organizations must therefore devise ways to deal with increased demand for fixed amounts of resources, which will ensure their competitive powers. Organization should carefully study income statistics and trends as this will help them in estimating market potentials and developing plans for targeting specific market segments. Income is a major factor in marketing's economic environment because it influences consumers buying power Social cultural environmental have specific influence in the society for example social groups, the habits language lifestyles, peoples attitude, their perception e.t.c and this affects marketing efforts uniquely. A society may be classified into low medium and high class. This is a challenge to the marketing managers because they have to appeal to each group differently in terms of income lifestyles etc. this defines the acceptable behaviour pattern within a society where most cultural factors are subjective, the united states for example, is a mixed society composed of various sub markets, each of which displays unique values and cultural characteristics and therefore differs by age, place of residence and buying behaviour. What must we do Learning about cultural and societal differences among countries is paramount to a firm's success abroad. Marketing managers must redesign packages and modify products together with advertising messages so as to suit the taste and preferences of different cultures. Otherwise the organization will experience trouble as it is happening with the coca cola company in marketing coke in France. Due to cultural and health concerns, the French drink much les coke than the British, Germans, Spanish and Italians. Their preferred drink is bottled water which they drink eleven times much more than coke. They consider coke full of chemicals. However the coca-cola company has taken several steps to boost coke sales in France, spirits producers, increasing its sales force, installing thousands of vending machines and building canning plants. It also renamed diet coke to Coco-cola light since diet in French connotes medicinal products. The French, like most European nations accept nudity in advertising a thing that led to the company featuring a topless model in a black bikini in its advertising for the diet drink. 4 Changing values have led to the consumerism movement and every marketer should be aware of the impact of consumerism on the nation's economy and general well-being (James 1969) through all consumer demands cannot be met, a competitive marketing systems is based on the individual behaviour by competing firms. Business can not meet all consumer demands if it is to generate profits necessary for remaining viable, this selection process becomes one of the most difficult dilemmas facing society today. (James, 1969) Marketing managers must be sensitive to society's changing values and shifts in demographics such as population growth, age distribution, population growth rate, dependency ratio, rural migration, level of education, concept of working woman etc these changing variables affect the way consumers react to different products and marketing practices. What may be put bonds today may be totally acceptable in tomorrow's market place. Products that one once taboos, for example, condoms and feminine hygiene products are now commonly advertised. A change in national attitude towards sex has altered the way some firms advertise their products. Although society in general has become more accepting of such promotions, consumers tend to respond to a sexual approach only when the advertising is geared toward certain products such as fragrances, clothing and lingerie. 5 Competitive environment often determines the success or failure of a product. Marketing decisions by individual firms will influence consumer responses thereby affecting the marketing strategies of competitors. To counter this, marketing managers must continually monitor competitors marketing activities monitor competitors marketing activities their product, channels, price and promotion efforts. marketing managers face three types of promotion the must direct being competition among marketing managers of similar product e.g. competition in the Compaq and NEC of product that can be substituted for another in the transportation industry for example, Amtrak competes with auto rental ser vices airlines and bus services in sending of documents overnight express mail services and messenger services complete with facsimile {fax} machines. The growth of fax has put a huge dent in competitor business choice courier a large messenger service lost ten percent of its revenues in one year to fax not only do fax machine speed delivery they also provide cost savings the Russian tea room in Manhattan recouped its two thousands dollar investment in fax machine in just seven months with savings or banquet contracts, press releases and menu change. {Louis, 1992} In instances in which a change such as price increase or improvement in products strength occurs demand for substitution products will be directly affected. The final type of competition occurs among all organizations that compete for the consumer's purchases, marketing managers should accept the argument that all firms compete for a limited amount of discretionary buying power. In this a Madonna compact disk competes with a Steve martin movie for than buyer's entertainment dollar. Marketing managers should understand that among the first purchasers of new product are the products competitors who carefully analyze its element these includes physical component the performance attributes, packaging its retail price service requirement and estimates production and marketing costs. This will allow marketing costs. This will allow marketing managers to forecast its likely competitive impact and make necessary adjustment in order to complete effectively entry. 6 All marketing managers must develop an effective strategy for dealing with competitive environment the firms resources, objectives and expected profit will guide the organization on whether to continue operating or not. Gulf and Western for example sold 50 businesses that were not operating profitably and demand not show a satisfactory return on investment Organization must acknowledge that they have limited resources which should be allocated to the areas of greatest opportunity many marketing managers have done an ineffective job by taking a different approach for example through acquisitions, general mills diversified beyond its food business and tried to compete in 13 different industries including retailing toys &games jewelry and fashions but it later learned that competing in markets unrelated to its core business spread the company's resources too thin to prepare for than intensely competitive environment of the 1990's the company reviewed its strategy and decided to sell its non food business and focus instead on the two markets it know best i.e. consumer foods restaurants A marketer should make products, pricing distribution and promotional decisions which will give the firm a competitive advantage in the market place firms can compete on product quality, price and customer service which will translate into a successful business organization.7 Markets should learn and comply with laws and regulations in line with the political environment besides, failing to comply can negatively affect firms' reputations which will definitely hurt its profits regulations affecting marketing have been enacted at the state and locals levels as well as independent regulatory agencies. They Cleary touch on all aspects of marketing decision marking which include design labeling, adverting packing and promotion of good &services. All marketing managers should be aware of the major regulations that affect their organizations to ensure success in their business. References Gastron, S. {1996} Strategies for successful management, west Toronto, Ontario. Glenn, A. {1970} Cases in profit planning and control angle wood cliffs New Jersey. James, P. {1969} This is advertising, crown publishers, New York. John, E. (1996}: Marketing: annual editions. Dushkin publishing group Guilford Louis, E. {1992}: Contemporary marketing Dryder press, Orlando. Ouko, R. {1972}: A review of East Africa common market economics and statistical review. Stewart, T. {2000} Network marketing mercantile press, Wilmington. Suleiman, I. {1995} A planned approach to as common market in developing countries cosign publication, Nairobi. William, D. {1974) Jobs in marketing and distribution, Lothrop, Lee & Shepard Company. New York. Read More