There are a few ways a business can stay ahead of its competition. They could research the
pros and cons of their competitor and marketing; for example: if the business competition
has a problem with customer service or customer returns, a company can build on the
negativity of their contender by using it against them and, in turn, help their own business
improve their sales. Second, give your customers incentives like 20% off their purchase for
filling out surveys regarding what the customer wants to see in the company's business and
what would encourage them to shop with their company. I find incentives are always a
great idea for improving a business. It would also be a great idea to start a mailing list, so
the customer can receive incentives to encourage them to do business with the company.
Company credit cards would also create more extensive sales for the company; buy now
pays a small monthly payment every month. There are many great opportunities for a new
business to succeed; all it takes is research, advertising, and incentives. According to the
text, an organization will use a process called environmental scanning. It allows
organizations to take a look at trends in their industry to determine how threats and
opportunities can be managed. Chapter 3 lists the five environmental forces that help
determine industry trends. Social forces are the first component of environmental scanning.
It encompasses the demographics and culture of the population. Changes in social forces
can have a tremendous effect on an organization’s marketing strategy. The second
component is Economic forces as it is related to income, expenditures, and resources that
organizations need in order to operate. The third component is technological forces, which
refers to inventions or innovations from mechanical or engineering research. Technology is
constantly evolving so organizations need to know how technology can replace existing
products or companies. Competitive forces are the fourth component of environmental
scanning. It includes information about other organizations that could offer the same
product to an organization's prospective market. Identifying competitors and determining
which of the four forms of competition they are categorized can help an organization
develop its marketing strategy. The fifth component is regulatory forces. These forces
consist of state and federal laws put in place to ensure organizations conduct fair business
practices. These regulations also provide protection to organizations. For consumers,
regulatory forces have state and federal laws in place to protect them from unfair trade
practices and it ensures their safety.
Organizations can develop and maintain successful marketing programs when they are able
to identify trends related to each of these forces.” A way a company’s marketing
organization ensure that it’s able to identify newly emerging competitors in time to plan
and execute an effective marketing strategy in response to these competitors is through
environmental scanning. Environmental scanning includes looking at information and
looking for information. I’ve always wondered this information as well, so this was fun to
explore. There are four modes of environmental scanning: undirected viewing, conditioned
viewing, informal search, and formal search. An example of undirected viewing is using a
small firm that gathers information through pre-existing contacts personal contacts with
limited buyers, suppliers, sales personnel, and associates in other companies. An example of
conditioned viewing is browsing sections of newspapers, periodicals, or websites that report
on the topic. An example of informal search is conducting a simple survey, informal
interviews with a target audience, seeking opinions of colleagues, and searching through
company files. Lastly, an example of formal search is using more of a systematic approach
and scientific methods such as research design and method, results and analysis, conclusion,
and bibliography. It’s careful to use up to date information and reliable sources. These four
environmental scanning modes help the company’s marketing team know their competitors
and plan accordingly.
Kerin, R.A., & Hartley, S.W. (2021). Marketing (15th ed.). McGraw-Hill.
