As a part of the external environment, the industry environment is closer to the business people and firms and has a more direct effect on them relative to the general environment. Industry can be described as a group of companies that produce similar products which are close substitutes. These companies fight for the same customer acceptances for their similar products. The important factors in the industry environment are the customers, suppliers, competitors, substitutes and the labor market.
Customers: Customers are the potential buyers of the products that are supplied by the firms in the industry. They acquire the goods and services produced to satisfy their particular needs. Managers and business people consider the potential customers together with their particular needs. Three major groups of customers are: consumers, retailers and wholesalers, and Industrial or institutional buyers. The companies monitor the customer needs and wants and select a target market to develop a marketing mix that will eventually satisfy the customer groups. Read the rest of this entry »
