MARKETING ENVIROMENT

MARKETING ENVIROMENT

1. The actors and forces outside marketing that affects marketing managements ability to build and maintain successful relationships with target customers

   • The marketing environment is made up of the internal and external environment of the business. While internal environment can be controlled, the business has very less or no control over the external environment.
     • MACROENVIRONMENT
       • The macro component of the marketing environment is also known as the broad environment. It constitutes the external factors and forces which affect the industry as a whole but don’t have a direct effect on the business. The macro environment can be divided into 5 parts.
         • Demographic Environment
           • The demographic environment is made up of the people who constitute the market. It is characterised as the factual investigation and segregation of the population according to their size, density, location, age, gender, race, and occupation.
         • Economic Environment
           • The economic environment constitutes factors which influence customers’ purchasing power and spending patterns. These factors include the GDP, GNP, interest rates, inflation, income distribution, government funding and subsidies, and other major economic variables.
         • Technological Environment
           • The technological environment constitutes innovation, research and development in technology, technological alternatives, innovation inducements also technological barriers to smooth operation. Technology is one of the biggest sources of threats and opportunities for the organisation and it is very dynamic.
         • Political-Legal Environment
           • The political & Legal environment includes laws and government’s policies prevailing in the country. It also includes other pressure groups and agencies which influence or limit the working of industry and/or the business in the society.
         • Cultural Environment
           • The social-cultural aspect of the macro environment is made up of the lifestyle, values, culture, prejudice and beliefs of the people. This differs in different regions.
     • MICROENVIRONMENT
       • The actors dose to the company that affect its ability to serve its customer- the company, suppliers, marketing intermidias,customer markets,competitors and publics
         • The company
           • groups such as top management, finance, research and development (R&D), purchasing, operation, and accoiunting. All of these interrelated groups form the internal enviroment.
         • suppliers
           • Suppliers include all the parties which provide resources needed by the organisation.
           • Manufacturers and Vendors, Wholesalers and Distributors, Importers and exporters, Franchisors
         • Marketing Intermediaries
           • Market intermediaries include parties involved in distributing the product or service of the organisation.
         • Customers
           • comprise of the target group of the organisation. All people that buy your product or service.
         • Publics
           • is made up of any other group that has an actual or potential interest or affects the company’s ability to serve its customers.
         • competitors
           • are the players in the same market who targets similar customers as that of the organisation.
     • Importance of Marketing Environment
       • Every business, no matter how big or small, operates within the marketing environment. Its present and future existence, profits, image, and positioning depend on its internal and external environment. The business environment is one of the most dynamic aspects of the business. In order to operate and stay in the market for long, one has to understand and analyze the marketing environment and its components properly.