Scanning the Market Environment
Fad is short lived mushrooming of opportunity which is difficult to predict and forecast. Business profit from fad is pure matter of luck and chance. Trend is something which takes time to build up compared to fad and has a predictable future. Trend is sometimes co-related with changes in social culture and economical situation. Megatrend is much slower in development and is associated with political, socio-economical, technology and regulatory changes. Megatrends are estimated to last around half decade or more.
For companies trend and megatrend are of great importance because they present business opportunities to them. Currently portable music player and hand held devices are real craze in the market with consumer willing to pay premium for them. However the direction in which market is going to develop is only possible by continuous following of market.
This trend-spotting activity can be undertaken by company itself or through market research. This activity can also be outsourced to companies, which specialize in analyzing current social and economical changes. Fitness and diet are another trend, which witness growth across the globe.
Trends developing in markets are under the influence of a number of factors to which companys stakeholders are participants. Some of the factors are as follows:
There are many other factors beyond the above mention which affect business working making it essential for companies to scan market condition.
Factors influencing the market can be categorized under 6 different titles, demographic, economic, ecology, technology, regulatory-political and society-culture.
All these 6 factors define any market environment and companies must understand them before developing their business plan.
- Adapting Marketing to New Economy
- Building Customer Satisfaction
- Measuring Market Demand
- Consumers Buying Behaviour
- Business Buying Behaviour
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