Marketing illustration Marketing theory

Marketing and the business environment

Effective marketing demands the identification and understanding of target markets. These are highly dynamic: expanding and contracting, shifting in new directions and emerging suddenly from where no market previously existed. It follows that firms need to research carefully the drivers of demand in the business environment.

This may involve secondary research (analysis of published data) or primary research where purpose-designed surveys explore consumer behaviour and motivation.

  • Social and demographic changes will affect the sales of many products for example through shifts in the age structure of the population and changes in lifestyles an fashion.
  • New technologies may open up some markets while closing down others (eg the changeover from video cassettes to DVDs).
  • Economic trends can sharply affect spending on luxuries of any kind positively in a boom, negatively in a recession.
  • Political change affects levels of public spending, the taxation structure and consumer protection law.

Scanning and interpreting all these areas of change requires both knowledge and experience and can be a key source of competitive advantage. Much also depends on anticipating the reactions of competitors. Interpreting and responding to change ahead of the competition can yield high gains in terms of both profit margins and sales.

 

 



Supporting Documents

These downloads will help to put marketing theory into context using real world examples from real businesses.

Sponsorship as part of the marketing mix
Ford logo

Find out how Ford applied marketing theory to succeed in the automotive industry by downloading our premium case study.

Meeting customers' needs in growth markets - online gaming
BT logo

Discover how BT applied marketing theory to succeed in the telecommunications industry by downloading our premium case study.

Protecting the marketing mix through intellectual property rights
Intellectual Property Office logo

Learn how Intellectual Property Office applied marketing theory to prosper in the public sector industry by downloading our premium case study.

Planning effective marketing strategies for a target audience
adidas logo

Discover how adidas employed marketing theory to succeed in the sportswear industry by downloading our premium case study.

The use of social media in promotion
National Trust logo

Discover how National Trust applied marketing theory to thrive in the non-profit industry by downloading our premium case study.