Environmental scanning refers to the process of gathering and analyzing information about external factors that can impact a business or organization. These factors may include:
- Economic
- Political
- Social
- Technological
- Cultural factors
and others.
The purpose of environmental scanning is to help organizations identify potential opportunities and threats in the market and to develop appropriate strategies to respond to them. By carefully analyzing external factors, businesses can identify emerging trends, shifts in consumer preferences, and changes in the competitive landscape that can impact its marketing initiatives.
Environmental scanning is important to marketing as it enables businesses to develop effective marketing strategies that are relevant to current market conditions. By keeping up-to-date with changes in the market and consumer preferences, businesses can tailor their marketing campaigns to address these changes and remain competitive.
Environmental scanning also helps marketers to make informed decisions regarding target market selection, product positioning, and the development of pricing and promotional strategies. By understanding the needs and preferences of customers, businesses can develop products and services that are aligned with customer needs, leading to higher levels of customer satisfaction and long-term customer loyalty.
The purpose is to provide relevant information to businesses and organizations, enabling them to make informed decisions and develop effective marketing strategies that are aligned with current market conditions. This can help organizations remain competitive in the market and improve their overall performance.