Market Environment

Market Environment

1. The Marketing Environment includes the Internal factors (employees, customers, shareholders, retailers & distributors, etc.) and the External factors( political, legal, social, technological, economic) that surround the business and influence its marketing operations.

2. Microenvironment

   • the actors close to the company that affect its ability to serve its customers
   • Customers– Every business revolves around fulfilling the customer’s needs and wants. Thus, each marketing strategy is customer oriented that focuses on understanding the need of the customers and offering the best product that fulfills their needs.
   • Employees– Employees are the main component of a business that contributes significantly to its success. The quality of employees depends on the training and motivation sessions given to them. Thus, Training & Development is crucial to impart marketing skills in an individual.
   • Suppliers– Suppliers are the persons from whom the material is purchased to make a finished good and hence are very important for the organization. It is crucial to identify the suppliers existing in the market and choose the best that fulfills the firm’s requirement.
   • Competitors– Keeping a close watch on competitors enables a company to design its marketing strategy according to the trend prevailing in the market.

3. Macroeconomics

   • the larger societal forces that affect the microenvironment
   • Political & Legal Factors– With the change in political parties, several changes are seen in the market in terms of trade, taxes, and duties, codes and practices, market regulations, etc. So the firm has to comply with all these changes and the violation of which could penalize its business operations.
   • Economic Factors– Every business operates in the economy and is affected by the different phases it is undergoing. In the case of recession, the marketing practices should be different as what are followed during the inflation period.
   • Social Factors– since business operates in a society and has some responsibility towards it must follow the marketing practices that do not harm the sentiments of people. Also, the companies are required to invest in the welfare of general people by constructing public conveniences, parks, sponsoring education, etc
   • Technological Factors– As technology is advancing day by day, the firms have to keep themselves updated so that customers needs can be met with more precision.