Quiz 3: Analyzing the Marketing Environment
There are various online sources which provide information about the environmental factors which can likely influence the women's clothing store. One such online source is http://smallbusiness.chron.com/macroenvironmental-factors-affecting-clothing-industry-37254.html. The source provided above provides valuable information about the environmental factors which can affect the clothing industry. The environmental factors affecting the women's clothing store, as identified in this source are: 1) Consumer factors : This factor includes lifestyle, norms, cultures, population and demographic changes. Clothing industry is affected by these factors in many ways. For example, clothing manufacturers must create styles which can appeal to people of different cultures. 2) Technological factors : This factor includes availability of useful resources, use of advance machines and equipment. Clothing manufacturers must always keep themselves updated about the latest machines and equipment which can increase productivity and can improve the quality of the clothes. 3) Legal and political factors : Child labour laws and workers' rights issues have repeatedly affected the clothing industry in the past. Union workers in this industry often hamper the production due to their demands, especially regarding medical benefits and wages. This causes a deviation between demand and supply of the clothes which can potentially affect the sales and profits of a retail store owner. 4) Economic factors : This factor can have both, negative and positive, effect on the clothing industry. Recession in the economy can substantially lower the sales of clothes at retail stores because the purchasing power of the customers reduces. However, during the period of economic boom, opposite happens i.e. the disposable income increases and therefore the consumers buy more clothes from the stores.
Entity 'W F' stresses the need to use organic food and sustainable fishing practices. It has tried to offer superior organic product to its customers and assured them that its food products are free from preservatives and sweeteners and ingredients in the mix have been carefully chosen. It has tried to offer good customer service in its stores together with free in-store sample. This has created a positive impact on its customers and helped Entity 'W F' in securing a good chunk of organic food market. Entity 'W F' has laid special emphasis on the healthy aspect of living. When its environmental scanning revealed that consumers are turning more health- conscious, it immediately banned the use of chemical compound Bisphenol-A from its baby bottles and cups even before FDA recognition to this effect. Entity 'W F' emphasis on healthy living further revealed in 2009, when it adopted a new core value of promoting the health of its stakeholders through healthy eating education. The company also started to sell healthy eating cookbooks and posting healthy eating information and recipes throughout its store. The company also provided additional discounts to those employees who achieved health objectives. Whole foods' product and sustainability initiatives find favor with consumers. The company also took advantage of socio-cultural perspectives favoring natural and organic foods. All these developments made Entity 'W F' successful in the highly competitive supermarket industry.
Environmental Scanning: It is the process through which market researchers collect information about the forces in the marketing environment. It involves observation and secondary resources such as trade, government, business and marketing research. • Environmental scanning provides marketers some edge over the competitors by letting them take the advantage of current market trends. • Also, it enables better decision making by analysing the outcomes and their repercussions. • It helps make better utilization and lucrative allocation of resources. Environmental analysis: It is the process of interpreting and assessing the information which is gathered through environmental scanning. Marketing personnel evaluate the generated information for its accuracy and try to resolve any inconsistencies found in the data. Marketers also assign useful significance to the findings. • Environmental analysis helps marketers in identifying potential opportunities and threats which are linked to the environmental changes. • It also helps in developing the future marketing strategies.