How To Analyze The Market And On What Environments It Depends
The market situation analysis summarizes all pertinent information obtained about three key environments: the internal environment, the customer environment, and the firm’s external environment. The analysis of the firm’s internal environment considers issues such as the availability and deployment of HR, the age and capacity of equipment or technology, the availability of financial resources, and the power and political struggles with in the firm’s structure.
The analysis of the customer environment examines the current situation with respect to the needs of the target market (consumer or business), anticipated changes in these needs and how well the firm’s products presently meet the needs. Finally the analysis of the external environment includes relevant external factors- competitive, economic, socio-cultural, political/legal, and technological- that can exert considerable direct and indirect on the firm’s marketing activities.
The information for a situation analysis may be obtained internally through the firm’s Market information system, or it may have to be obtained externally through primary through primary or secondary marketing research.
The analysis of the competitors can be done on four levels. The competition consists only of those companies which offer similar product or service to the target market, using the same technology along with exhibition of similar vertical integration or which operate in same products or service category. Competition also consists of all the companies manufacturing or supplying products which deliver the same service. It is between all the companies which have an urge for cornering the same spending power of the target group (visa and master card) while making electronic payment either through credit or debit card. These may be for different purposes like travel ticket, hotel bookings, utility bills and so on.