different types of external factors or trends used in creating marketing strategies

Trends

Marketers must be able to anticipate and adapt to future trends and technological advancements in order to stay ahead of the competition.

The Micro Environment and Trends

The micro environment refers to the forces that are close to the company and affect its ability to serve its customers. It includes the company itself, its suppliers, marketing intermediaries, customer markets, competitors, and publics. The technological environment is perhaps one of the fastest changing factors in the macro environment. This includes technological developments in areas ranging from antibiotics and medicine, to nuclear and chemical weaponry, and credit cards.

How the Micro Environment Applies to Organizations

The corporate aspect of the micro environment refers to the internal environment of a company. This includes all departments, such as management, finance, research and development, purchasing, operations, and accounting. Each of these departments has an impact on marketing decisions. For example, research and development have input as to the features a product can perform. Accounting approves the financial side of marketing plans and budgets.

The suppliers of a company are also an important aspect of the micro environment. For instance, delivering supplies late can result in customer dissatisfaction. Marketing managers must watch supply availability and other trends involving with suppliers to ensure that product will be delivered to customers within the time frame required to maintain a strong customer relationship.

Technology Trends and Marketing

As industries such as pharmaceuticals and national defense expand, they create new markets and new uses for products. Such advances require companies to compete effectively, stay abreast of the latest trends, and update their product technologies as they become outdated.

Technology is the knowledge of how to accomplish tasks and goals. Technology affects marketers in several ways. First, aggressively advancing technology is spawning new products and processes at an accelerating rate that threatens almost every existing product.

Second, competition continues to intensify between old and new organizations as many substitute technologies compete with established products. Third, product innovations that result in superior performance or cost advantages are the best means for protecting and building market position without sacrificing profit margins. This is especially true in today’s world, when many markets are experiencing flat or slow growth when excess capacity is commonplace.

History provides many examples of companies that have lost their competitive advantage because a competitor came into the market with a product that had superior cost advantage or performance characteristics. These examples are not limited to small or weak companies. Even industrial giants including AT&T, General Electric, and IBM have seen parts of their markets eroded by competition with a distinctly superior product.

‘Smart’ Electric Car: The electric car has not been as popular as marketers predicted. Hybrid cars have become increasingly popular.

Forecasting New Trends

There are thousands of forecasters who claim to be able to predict or at least determine the direction of future markets. One that has an excellent track record is Roper Starch, a research firm that has been looking at trends for over 50 years. The 2000 Roper Report identified four concepts that may help marketers understand Americans in the next decades:

• “High Pace/High Peace”: Americans’ high-speed lifestyles create new goals and needs”: As the pace of life is picking up, there is growing desire and demand for peace. The shift to “High Pace/High Peace” is evident in the marketplace. Increasingly, brands seem to be “high-pace” (efficiency-oriented, intense brands like Apple) or “high-peace” (relaxing, spa-pace brands like Banana Republic, and personalities like the Dalai Lama). Data suggest that there are opportunities for marketers to become a bridge to get people to both their high pace and high peace goals.
• “Kinnections”: The movement to connection in technology, relationships, and brands”: In a whole host of areas—from communications and computing to attitudes towards family and community—connections are up. This sense of connection is apparent in the marketplace as well in cause-related marketing and a greater desire for brands to go beyond the basics like quality and value to connect in new ways with consumers. Companies like Facebook, Twitter and LinkedIn are now synonymous with the new, ultra-connected society.
• “Diversity/Destiny”: The US increasingly is “the world’s nation”: our foreign-born population has almost tripled in the past 30 years. African-Americans, Hispanics, and other minorities make up the majority of the nation’s population growth in the past decade—and will account for an even larger proportion of the nation’s growth in the decade to come. To succeed, marketers must be culturally aware.
• “Marketing by life stage”: Marketers have traditionally relied on standard demographics to understand and predict consumer behavior. Research shows, however, that life stage can be a more powerful predictor of consumer attitudes and behavior than traditional demographic analysis. Classifying Americans by the life events they have experienced, rather than by demographic traits, can yield insights and understanding into a market that might otherwise have been overlooked.