“ A company’s marketing environment consists of the actors and forces outside marketing that affect management’s ability to build and maintain successful relationships with target customers.” (Philip Kotler)
The microenvironment consists of the following actors close to the company that affect its ability to serve its customers: (1) The company (2) The suppliers (3) The marketing intermediaries (4) The customer markets (5) The competitors (6) The public.
The macro environment consists of the following larger societal forces that affect the microenvironment: (1) Demographic (2) Economic (3) Natural (4) Technological (5) Political (6) Legal (7) Cultural.
Examples of Threats Posed By Marketing Environment In India
Entry of Multi-National Companies (MNCs) into the Indian market on a large scale increases the competition for products and services.
‘ Survival of the fittest’ rule forces many weaker and small-scale companies to close down due to non-viability.
Big players start buying smaller players through mergers and acquisitions.
Removal of subsidy affects profitability and viability of many industries. (Fertiliser industry is one such affected sector where units had to close down or stop products of certain products).
Banks and insurance sector came under competitive environment and were compelled to operate viably, at par with the private sector.
In general, many industrial units across India faced a destabilization consequent to the economic reforms. Their markets, market shares and profits came under severe pressure and viability became a big question.