Environmental Scanning Essay, Research Paper

This paper will discuss environmental scanning, marketing procedures, and describe how the environment affects marketing in relation to the automobile detailing business.

Environmental scanning is the process in which a firm continually collects and evaluates information about its external environment. There are six main categories of environmental data to consider when evaluating marketing decisions. These are social forces, demographic forces, economic forces, technological forces, political and legal forces, and competitive forces.

SOCIAL FORCES: Potential customers in the automobile detailing business include both car dealerships and private customers such as families.

DEMOGRAPHIC FORCES: The most important demographic force affecting the detailing business is the location of people. There is a better chance for business in a commercialized area with dealerships, than in a residential area with families.

ECONOMIC FORCES: The automobile industry needs to be analyzed for the high and low points of buying during the year. For example, around December people do not tend to purchase new cars, therefore causing a slow period in the industry. This affects the amount of customers in the detailing business as well.

POLITICAL AND LEGAL FORCES: The automobile detailing business should be aware of environmental and zoning laws that may vary from state to state.

COMPETITIVE FORCES: There is relatively low concern for competition from foreign-based firms since the automobile detailing business is a service provided on a personal level. However, there may be competition from other businesses in the area.

There are several marketing procedures to consider when increasing customers in the automobile detailing business. It is especially hard for smaller businesses to get started. One of the most important marketing tools used is personal selling. Sending a person from one car dealership to the next with fliers is a good way to promote the company. Word of mouth can also attract customers such as families who may need their car cleaned, but not a daily basis. Another example of a marketing procedure is to identify loyal customers and offer them special discounts.

The outside environment affects marketing in the automobile detailing business, because automobile detailers are dependent on the car dealerships. If business is slow for the dealerships it will hurt the detailing business.

If there is a lot of competition in the area, then the business will have to concentrate on marketing their business over the others. The size and reputation of a company can also affect the business.

There are many factors of marketing that can affect the way that the automobile industry operates.