Technology-Marketing External Environment
The marketing external environment is made up of many factors. The external environment is the factors you cannot control. The external environment contains Competition, Technology, Environmental, Demographic Changes, Cultural and Social Factors, Legal and Political, and Economic Factors. I think one of the most important ones is technology. Technology is uncontrollable, but it is important to keep up with it. I read an article about why it’s important as a company to keep up with technology. The article explains that if you do not keep up with technology you will fall behind your competition. Most of your competition probably has Facebook pages, Twitter feeds, Instagram, etc. Keeping ahead of technology is a necessity if your organization anticipates long term stability and growth. It’s important to know your customers skill level with technology and stay on pace with them or soon you could become irrelevant. Companies often miss opportunities to improve communication with both employees and its customers. Companies also miss opportunities to improve on organization as well. CRM software is a great example of this. Lastly the article explains that there are companies such as Axis Group who offer system modernization services to help reduce costs and improve productivity. They will keep you up to date with technology.
For the project we are doing I have to create a Marketing Plan. Within that marketing plan I have to do a SWOT Analysis. One thing I wanted to learn more about was what to all put in my SWOT Analysis. I found this article on Mindtools Website. This is one that Mike always suggests we that we check out for more marketing information. In the introduction of the article they explain that the reason a SWOT Analysis is so powerful is because it can help a company uncover opportunities that are in their power to exploit. Also by understanding the weaknesses of the business it will not catch the company off guard when a threat occurs and they can manage and eliminate threats better. A good tip that the article gave me was to think of strengths and weaknesses within the company while opportunities and threats are outside the company. Some of the things to touch on in strengths are, “What do you do better than anyone else?” and “What unique or lowest-cost resources can you draw upon that others can’t?” With the weaknesses look at, “What unique or lowest-cost resources can you draw upon that others can’t?” or “What factors lose you sales?” This article really helped me out a lot. There are a lot of questions to ask yourself when looking to create a SWOT Analysis and I would recommend using this article if you are creating a SWOT Analysis for a project or company.
How the Population is Changing
Mike touched on this in class today about how the population shift we are seeing occurring is going to cause a huge difference in the way we do business. We are going to have to start marketing to the older generation as well as the younger generation. This video explains how from 1700-1980’s or so the population could be graphed as a pyramid. With the youngest generation on the bottom they were always the widest and as the population got older toward the top of the pyramid it got thinner. What’s happening now is that the baby boomer generation is living longer and there is a large amount of people from that generation. In 1950 the average male life expectancy was in the low to mid 60’s, whereas by 2050 the male life expectancy will be around 80 years old. Also birth rates are going down. Back in 1970 the average births per woman was around 4.5. Today it is around 2.5. This is largely because of the cost of raising children has grown dramatically and it is almost necessary for the mother of the family to have a full time job. This is going to affect marketers, graphic designers, and web developers in the future. For marketers we will have to make sure to target the older generation as well. For graphic designers it will be important to make fonts legible for the older generation and also for the blind. For web developers it will be important to do web usability tests to make sure that the older generation can use the websites without any hassle. These are just a few ways that the changing population will affect business. It is important to remember that as the older generation grows they will be a larger part of the customers making buying decisions for the household.