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Ab company'sb marketingb organizationb canb identifyb competitorsb byb usingb environmentalb
scanning.b Environmentalb scanningb isb ab wayb tob identifyb andb analyseb trendsb byb continuouslyb
acquiringb information.b Environmentalb scanningb gathersb informationb fromb fiveb categories:b
social,b economic,b technological,b competitiveb andb regulatoryb forces.b Eachb ofb theseb areasb
providesb insightsb onb potentialb trendsb andb canb provideb anb earlyb warningb ofb ab newb competitor.b
Havingb informationb onb thingsb suchb asb consumerb income,b demographics,b andb changingb
technologyb wouldb allowb ab companyb tob respondb accordinglyb tob ab competitorb byb ensuringb
theirb resultingb productb isb wantedb andb neededb byb consumers,b andb consumersb haveb theb abilityb
tob purchaseb it.b Oneb exampleb ofb ab companyb respondingb tob competitorsb isb Coca-Cola.b Coca-
Colab isb theb majorb competitorb ofb Pepsib andb theyb haveb ab longb rivalryb competingb inb theb softb
drinkb industry.b Inb orderb forb Coca-Colab tob standb outb fromb Pepsib andb convinceb consumersb tob
buyb Coca-Colab productsb overb Pepsi,b Coca-Colab introducedb newb productsb suchb asb Vanillab
Cokeb andb Cokeb Zero.b Coca-Colab wasb ableb tob gatherb informationb onb consumersb andb
demographicsb andb createb ab productb thatb wouldb satisfyb andb needb andb wantb ofb consumersb thatb
Pepsib didb notb have.b Ab company'sb marketingb organizationb canb ensureb thatb itb isb ableb tob
identifyb newlyb emergingb competitorsb byb ensuringb theyb areb exercisingb environmentalb
scanning.b Ifb ab companyb hasb ab graspb onb whatb isb happeningb aroundb theirb organizationb asb wellb
asb withb theirb productb orb service,b inb regardsb tob sales,b environmentalb scanningb willb aidb themb inb
identifyingb competitorsb asb wellb asb timeb tob planb andb executeb anb effectiveb marketingb strategy.b
Theyb willb alsob beb ableb tob pinpointb anyb environmentalb trendsb thatb mayb beb happening.b Ib
rememberb growingb upb inb ab neighbourhoodb thatb hadb maybeb 2b handb carwashesb withinb ab 3-
mileb radius.b Theseb wereb theb do-it-yourselfb carb washes.b Theyb wereb alwaysb crowdedb sob ab lotb
ofb peopleb resultedb tob washingb theirb carsb inb theirb driveways.b Homeb carb washesb becameb
anotherb Saturdayb householdb chore.b Inb myb earlyb 20'sb theb neighbourhoodb gainedb ab drive-thrub
carb wash,b theb carb washb stayedb busyb andb employedb ab lotb ofb teenagers.b Theb manualb carb
washesb wereb stillb operational,b butb theyb wereb nowb ab choiceb andb notb tob onlyb option.b Theb
familyb thatb openedb theb drive-thrub carb washb livedb inb theb 3-mileb radiusb thatb Ib spokeb aboutb
before,b Ib didb notb knowb thisb asb ab kidb orb youngb adultb butb Ib wouldb sayb thatb thisb familyb didb ab
formb ofb environmentalb scanningb andb sawb ab wantb ofb theb community.
Ab company'sb marketingb organizationb canb ensureb thatb itb isb ableb tob identifyb newlyb emergingb
competitorsb inb timeb tob planb andb executeb andb effectiveb marketingb strategyb byb consistentlyb andb
continuallyb scanningb theb marketb environmentsb andb researchingb completingb researchb inb itsb
targetb markets.b Onceb theyb areb awareb ofb theb needsb ofb theb customersb andb identifyb otherb
organizationsb thatb areb focusedb onb meetingb thoseb needsb andb howb theyb areb ableb tob adjustb andb
offerb better.b Offeringb unmatchedb valueb forb theb customersb willb drawb themb tob theb companyb
andb marketingb tob thoseb thingsb thatb theb customersb valueb willb beatb outb theb competitionb inb mostb
cases.b Inb thisb technologicalb age,b usingb socialb mediab tob research,b connect,b andb communicateb
isb vitalb inb theb marketingb strategy.b Additionally,b concentrationb onb theb marketingb mixb fourb P's;b
product,b price,b place,b andb promotionb willb alsob beb ab keyb component.b Anb exampleb isb theb
differentb travelb assistanceb agency'sb thatb areb availableb needingb tob stayb upb onb theb marketingb
theyb areb producingb inb comparisonb tob others.b Ib oftenb willb useb Expediab tob convenienceb ofb
beingb ableb tob bookb hotel,b rental,b andb airfareb ifb neededb asb wellb asb theb valueb offeredb inb
comparisonb tob someb others.b Theb abilityb tob accumulateb pointsb isb anb addedb value.b However,b
thereb areb manyb otherb companiesb thatb haveb jointedb thisb realmb ofb businessb thatb wouldb beb
consideredb Expedia'sb competitors.b "Ab companyb scanningb itsb environmentb mustb considerb theb
possibleb barriersb tob entryb forb otherb firms,b whichb areb businessb practicesb orb conditionsb thatb
makeb itb difficultb forb newb firmsb tob enterb theb market.b Barriersb tob entryb canb beb inb theb formb ofb
capitalb requirements,b advertisingb expenditures,b productb identity,b distributionb access,b orb theb
costb ofb customersb ofb switchingb suppliers."b (Kerinb &b Hartley,b 2021)
Provideb anb example.
Ib wasb ab formerb outsideb salesb repb forb oneb ofb theb largestb businessb supplyb companiesb inb theb
country.b Ourb companyb mainlyb soldb commoditiesb suchb asb paper,b ink,b coffee,b toner,b officeb
supplies,b janitorialb suppliesb etc.b Web providedb eitherb sameb orb nextb dayb deliveryb withb nob
minimumb orderb amounts.b Theb questionb inb thisb assignmentb askedb aboutb "identifyingb newlyb
emergingb competitorsb inb timeb tob planb andb executeb anb effectiveb marketingb strategy."b Withb
respectb tob myb formerb industryb theb barrierb thatb wasb mostb prevalentb wasb "theb costb ofb
customersb ofb switchingb suppliers."b Becauseb myb companyb hadb soldb sob manyb differentb
categoriesb ofb saleb theb goalb ofb theb salesb repb wasb tob establishb asb manyb hooksb inb theb accountb asb
possibleb andb byb that,b Ib meanb categoriesb ofb sale.b Thisb typeb ofb saleb wasb ab repeatb sale.b Web
didn'tb sellb whatb ab customerb wanted.b Web soldb whatb ab customerb needed.b "Cost"b doesn'tb justb
meanb theb amountb ofb moneyb forb theb tangibleb item.b "Cost"b alsob meansb theb costb ofb havingb theb
employeeb orderingb theb productsb andb havingb tob spendb workb timeb shoppingb around.b "Cost"b
alsob meansb theb actualb inconvenienceb ofb havingb tob overhaulb anb orderingb procedureb thatb
wouldb takeb timeb tob do.b Tob exploitb thisb barrierb tob entryb theb salesb repb wouldb customizeb anb
onlineb favoriteb listb thatb hadb allb theb customersb itemsb onb it.b Web wouldb thenb makeb proprietaryb
itemb #'sb tob protectb theb skub fromb beingb shoppedb around.b Thenb web wouldb identifyb theb mostb
frequentlyb orderedb item'sb andb customizeb ab priceb thatb wasb alwaysb 5-10%b belowb marketb price.b
Theb ideab isb thatb web wereb okb withb losingb moneyb onb theb frontb endb becauseb web knowb thatb
whenb peopleb shopb onlineb thatb oftenb thatb addb items,b theyb didn'tb planb tob buyb priorb tob loggingb
in.b Mostb ofb theb timeb thoseb itemsb wereb justb orderedb withoutb needingb tob giveb specialb pricing,b
thusb web wouldb makeb upb theb lostb marginb onb theb frontb end,b withb theb profitb onb theb backb end.b
Web didb thisb whileb givingb theb perceptionb tob customerb thatb web wereb savingb moneyb becauseb theb
customerb isb usuallyb onlyb sensitiveb tob theb items,b theyb knowb theyb orderb mostb frequently.b Butb
creatingb ab customizedb listb web simplifyb theb processb forb theb customerb makingb itb annoyingb tob
leaveb us.b Becauseb theb companyb gaveb usb theb toolsb tob adjustb pricing,b web alwaysb hadb thatb toolb
inb ourb toolbox.b Allb ofb this,b inb combinationb withb goodb service,b isb howb theb repb wasb ableb tob notb
worryb aboutb ab competitor,b andb ifb ab concernb becameb prevalent,b web alreadyb hadb theb recipeb tob
mitigateb tob salvageb theb accountb :-).b Everyb businessb isb differentb butb forb usb theb barrierb tob entryb
inb whichb Ib describedb wasb easilyb theb mostb importantb forb us.
Reference:
Kerin,b R.b A.,b Hartley,b W.b S.b (2021)b Marketing.b Mc-Grawb Hill
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