Marketing environment analysis

Marketing environment analysis

Marketing environment analysis identifies the internal and external forces of the environment that affect organizational performance. The firm translates the factors to the decision-making process; therefore, the analysis aligns strategies with the organization’s environment. Competitive, political, economic, legal, and regulatory, sociocultural, technological factors affect the Honda Accord hybrid sales in the market.

Competitive Factors

Honda Accord hybrid has a vast product portfolio that addresses the needs of the different sections that help the company establish a long-lasting relationship with the customers. Furthermore, its strategic focus on identifying specific selling propositions, which include the lowest cost, high quality, and uniqueness of ideas. In addition, it has developed a close relationship between different departments. Moreover, it has developed a reliable bargaining power and lean production methods to assist in effective and efficient distribution channels.

Furthermore, the differentiation strategy promotes brand loyalty by providing premium products. The company has focused on durability, benefits, reliability, and distinctive features. In addition, it has developed strong brand recognition to increase expenditure on marketing strategy like sponsorship. The Honda Company has a well-developed marketing strategy by evaluating capabilities and available resources, identifying various competencies and leverage them by using different methods or cost orientation.

Economic factors

Continued dominance in the economy is due to its unique strategy, such as the invention of new models such as the Honda Accord car. There is continuous advancement in oil prices that has negatively affected the demand for petroleum cars. Moreover, its consumption would reduce affecting the market of automobiles. Honda would lose its revenues in petrol consuming motors. Therefore, it has launched its eco-friendly cars. Economic factors include; interest rate, inflation rate gross domestic product, foreign exchange rate, and the economic cycle. A high percentage of employment in a country means that the supply of jobs is high compared to demand; therefore, people would work for a lower wage and would devalue the cost of the Honda Accord. If Honda operates in international trade, the exchange rate will affect profitability. The rate of GDP affects the growth of Honda in the future.

Political factors

Political factors have an impact on chances of survival and profitability of Honda Company and vary from civil unrest, change in the ruling regime, and sudden change in the government decision (Hamza, 2019). Honda Accord is bound by government legislature to minimize the number of cars it usually produces. The high taxation would impair Honda’s investment from maximizing its revenues. The risk of military invasion by terrorism would cause Honda Accord hybrid disinvestment in the region. The sincerity of politicians and the ability to participate in corruption would negatively affect its investment; hence they would be harassed by politicians who demand a bribe. A low minimum wage leads to higher profits and, thus, a higher probability of survival of the Honda Accord. Political factors have an impact on the investment of Honda fusion hybrid in a particular country.

Legal and Regulatory factors

The government has enacted laws and regulations to monitor the industry. Therefore, they affect the Honda Accord hybrid company production and sales. The rules ensure a particular level of quality or set a specific price for Honda Accord car for customer safety. The intellectual property laws and data protection laws protect the patent and ideas of Honda Company. Hence, in case of stolen data Honda would lose its competitive market and would contribute to failure. The discrimination laws protect the employees and ensure everyone in Honda is treated equally and fairly and have similar opportunities regardless of age, gender, and religion. In addition, health and safety laws were a result of Honda’s social responsibility and ethics to other human kinds. The factors have both negative and positive impact on the firm.

Technological factors

Technology demolish the competitive forces and price structure of a business within a short time, hence the need to use new innovative ideas. Honda would invest in a technology that would transform and improve the first products offered; the drastic improvement negatively affects other firms in the industry. Honda would use technology that is not easily and quickly diffused by other firms to avoiding imitation of technological features (SWOT & PESTLE.COM, 2020). In addition, new technology should grow fast and disrupt its competitors’ revenues. Technological advancement has an impact on Honda; it can reduce or increase profit. If Honda experiences a high-profit margin, it can reinvest a small portion to research and development for innovations that would further increase the profit and ensure a continuous significant profit margin over a long period.

Sociocultural factors

The differences in education level between the target market and marketers make it challenging to approach target customers. Therefore, Honda would create a connection to the target market’s interests and priorities. Moreover, if the overall population comprise of the lower class, Honda is unable to promote its product to the general public. Therefore, they would consider using niche marketing. The demographic population affects its marketing in terms of age and gender.

Conclusion

The marketing environment factors have an impact on the Honda company performance. Therefore, the analysis determines what role particular factors play in the Honda Accord hybrid. Moreover, it uses the elements for the growth of the company, analyzing the revenue, corporate success, and profitability.