Course: SLF 130 Marketing Practices for the Small Business

Unit 4 Reading

SubTabs

- Unit 4
- Table of Contents (Selected)
- Unit 4 Glossary (Selected)

SWOT Analysis and Environmental Scans Page_3

Why scan the environment?

Scanning the environment acts as an early warning system for the organization. It allows marketers to understand the current state of the environment so that the organization can predict trends and be PROACTIVE.  Although it is very desirable to be proactive, reactive moves are also required sometimes and small businesses should not shy away from changing their course if new information, trends, or other factors warrant changes.

Stop and Review:

Environmental scanning refers to activities that gather information about events and trends that occur outside the organization and influence the organization's decision making.

Many marketplace changes occur that marketers cannot control, yet they influence what marketers do. Faced with environmental uncertainties or changes, marketers can respond in three basic ways – 1. do nothing, 2. be proactive, or 3. react.

Doing nothing, or waiting to see what happens, is generally not the best route. Overreacting, of course, can be dangerous. Small  business owners should have a support system and informed persons on whom they can rely to talk through big decisions.

The most common response, to react, involves changing components of the marketing mix in response to environmental changes. The product, price, promotion, or place/distribution might need to be changed.

Gathering information does not need to be expensive.  Bankers, industry organizations, retired and active businesspersons, and educational institutions can all provide valuable information about the environment.