The analysis of the environment is the analysis carried out by a company of the complete situation it faces, with the purpose of being able to make decisions that are oriented to the market and to be able to specify its marketing strategies.
The analysis of the environment allows a company to make a correct marketing plan that includes its segmentation process. Likewise, you can correctly select your target market and establish an appropriate positioning according to your particular situation.
Also, it allows you to plan and implement your marketing mix , specifically you can determine the type of product you will offer to the market, the price you will charge for it, the distribution system you will use and the forms of communication you will use to reach your target market .
How is the environment analysis done?
On the one hand, the analysis of the environment includes a series of steps, in order to have relevant knowledge and information of the environment or environment surrounding a company and thus make the best decisions that positively influence the performance of the company.
The environment analysis can be divided into internal and external analysis.
Indeed, the internal analysis is based fundamentally on the knowledge of the company. Particularly what matters to know are the strengths and weaknesses.
In the internal analysis we are interested in knowing the following:
- Company mission
Since, the mission represents the fundamental reason why a company exists. The mission is what allows us to justify the activity that the company is doing at a given time.
For example, a company’s mission might be that it is friendly to the environment.
- Market orientation
So, the market orientation is the philosophy or business culture , which serves as a guide for the planning and implementation of the marketing process. Similarly, it guides the management and general management of the company.
In other words, market orientation becomes the philosophy that is followed so that all departments of the company move in the same direction, but emphasis is placed on the marketing department.
Regarding this point, the ideal is that every company is oriented to the client and all its strategies revolve around it.
- Delivery of value
Therefore, the delivery of value to a company represents the set of benefits that it offers to the consumer so that it satisfies his need in exchange for paying a price and deciding to buy the products sold in the market.
On the other hand, the external analysis focuses more on the knowledge of the threats and opportunities offered by the external environment that surrounds the company.
Then, the external analysis must be carried out constantly, since the company’s environment is always changing continuously.
The main elements considered in the external analysis are the following:
- Customer analysis
A customer is the person who buys the products of a company. To make a customer analysis, all customer data that companies have must be taken into account.
In the same way, this data can be used to generate models to predict customer behavior, in addition these data help to determine who are the best customers of the company.
So, additionally with this analysis you can obtain important information about the potential value that customers have both in monetary and non-monetary terms. Above all, taking into account that it will be easier for a company to design its marketing strategies more effectively.
- Competitor analysis
Competitors are all companies that sell similar products or that meet the same need of consumers in the markets in which a company participates.
It turns out that it is called direct competition when competing companies sell products similar to ours and indirect competition when they market substitute products.
Also, the analysis of the competition is very important because it allows us to know the actions of the competitors, as well as their strategies and thus take preventive actions that provide us with some superior advantage.
- Analysis of the collaborators
Since the collaborators of a company are all partners that help and support the company so that it can achieve its objectives, the most important collaborators are distributors, suppliersand advertising or transport agencies.
- Distributors: Distributors are all intermediaries that make the products of a company reach the final consumer, they are responsible for carrying out the process of marketing the products.
- Suppliers: They are all the companies that supply the inputs and raw materials that a company requires in order to develop its production process.
- Agencies:These are all companies that support companies to carry out their communication processes, transportation logistics, portfolio management, among others.
Therefore, the information of the collaborators allows the company to develop comparative advantages and add greater value in customer delivery.
- Analysis of the external environment
It is also convenient to know how demographic, economic trends, lifestyles, technology, policies and regulations evolve, since they all determine and define the way of acting and the actions of the company.
Finally, we can say that the development of the marketing plan must begin with the internal analysis of the company and already to develop the marketing strategies and tactics, the company must perform the external analysis.
In any case, internal analysis helps the company know its weaknesses and strengths. Meanwhile, the external analysis allows to know the threats and opportunities that the company can find in the competitive environment.