Communication in the digital economy , Essay Example | Topics and Well Written Essays - 2000 words

Communication in the digital economy , - Essay Example It is the management’s ability to build and maintain flourishing association with their target consumers. External factors involve both opportunities and threats which change continuously with the changing environmental factors (accenture.com, 2010). In addition, marketing environment consists of the actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers. The marketing environment offers both opportunities and threats. The environment continues to change rapidly. The marketing environment is composed of Micro-environment and Macro-environment. Micro environment includes actors which are close to the company. These include customer markets, suppliers, advertising mediators, competitors and community. The Macro environment constitutes several other factors which are basically the larger communal forces that influence the micro environment. These forces are: demographic, economic, natural, technological, political and cultural forces. The transformation in the business environment is due to many reasons. Some of them are discussed keeping in view the automobile industry (Jain & R. K. Garg, 2011). 1. Demographic shifts Due to increase in population and urbanization, there has been a steady change in demographic factors. These factors affect market demand and consequently supply as well. With the change in the target market, the company has to maneuver its strategies accordingly. Customers desire newer, superior products at a lower price. The company’s primary target market is young men aged between 20 years and 30 years. These men are most likely having a couple of part-time jobs that put them in a better position to finance the cost of their cars. The main reason for targeting young men in their 20s is that they like to show off flashy cars. 2. Technological development and Innovation It is compulsive for organizations to keep up with the pace of techn ology. These changes in technology affect the mechanism in which the products are made and also the way in which they recruit and eventually their business culture. Invention of Smartphones has increased communication while social media have made it possible to reach target audience in a more convenient and effective way (Root et al., 2012). 3. Changing Global and Economical setup Due to recessions in the economy, there has been a market intervention approach, which has increased the coordination and dependency between public and private sector. Considering the prices of car specifically Prestige Auto-serve has segmented their cars in two categories which are luxury cars and super luxury cars. Both of these categories are focused specifically to the elite class of the society. The company sells prestigious cars including Mercedes, BMW, and Audi. It as well offers a couple of services including servicing cars, driving lessons, insurance services and financial services (Corwin et al., 2012). 4. Increased competition Due to the certain reasons, like increased valuation, customer awareness and competition, companies are required to venture into new markets, adopt new techniques, and formulate innovative strategies to gain that competitive edge which will make them stand out. If new businesses want to emerge as more compatible than it should have innovative ideas