Answered: Make a market environment analysis for…

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

Related questions

Question

Make a market environment analysis for business using of electrical cars using the market environmental factors

Expert Solution

Step 1

Introduction: Market environment analysis works as a tool for marketer to identify the external and internal environmental factors, which can create an impact over the business. it is very important to understand the environment, because it can also help the business to understand the opportunities and threats of the market and how the company should act to deal the threats and thrive on the opportunities. market environment analysis consist of 4 stages, which are:

1. Analyzing the PEST factors.
2. opportunities identification.
3. Understanding the threats.
4. take the required action.

PEST analysis: PEST analysis is consist of four fundamental analytical factors, through which a business can understand its external environmental factors and identify the opportunities and the treats of it. this four factors are:

1. Political factors, through which the business analyze the governments rules and regulations and how it can create an impact on the business.
2. Economic factors including financial policies, labor cost, trends of stock market etc.
3. Social factors including the consumer's buying behavior, income structure, size of the families of the consumers etc.
4. Technological factors including new technological changes of the market, information system, automation etc.