Marketing Environment and Segment Analysis

Needs and Trends Analysis in the Micro and Macro Environment

Marketing environment consists of forces that directly or indirectly influence the organization’s marketing activities. Marketing receives various inputs from the environment in the form of personnel, finance, raw materials and information. Marketing products various outputs to the environment in the form of goods, services, ideas, product images and communication. Marketing environment forces influence this process of exchange of inputs and outputs.

Marketing environment is dynamic. Every change in the marketing environment brings threats and opportunities. One of the most important task of the marketing management is to avoid threats and capitalize on the opportunities arising out of the changes in the environmental forces. In order to take advantage of the environmental dynamism, marketing management should carefully analyze the changed needs of the market and keep watch of new trends and mega-trends.

·         Needs: New needs arise out of new problems faced by the different categories of buyers. Marketing delivers products and services to solve customers’ problems and needs. A need is usually specific and of short duration.

·         Trends: A trend is a direction or sequence of event that have some momentum and durability. The demand for self-services stores. Compact disc players, digital watches, mini-skirts are trends. A trend is usually active for a period of two five years.

·         Mega Trends: Mega-trends are large social, economic, political and technological changes that are slow to form and are relatively stable for almost a decade. For example, adoption of western values in Asia could be a mega-trend. This trend may expand the Asian market for western clothing, environment, foods and many other products and services.