Sanjida Afrin, Department of management studies(7th batch),Comilla University,Comilla

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Introduction:
A variety of environmental forces influence a company’s marketing system. Some
of them are controllable while someothers are uncontrollable. It is the responsibility
of the marketing manager to change the company’s policies along with the changing
environment.
According to Philip Kotler, “A company’s marketing environment consists of the
internal factors & forces, which affect the company’s ability to develop & maintain
successful transactions & relationships with the company’s target customers.”
All organizations operate within environments. That is, all profit-making and notfor-
profit organizations are surrounded by, and must contend with, external forces.
Managers cannot govern the nature of these environmental forces.
Conceptually, the forces that comprise the marketing environment are viewed as
existing at two levels. They are categorized as micro and macro influences. The
microenvironment consists of those forces that directly affect the marketing
programs of a particular firm. The activities of marketing intermediaries, company,
customers, suppliers, and competitors are all examples of external forces that
influence the marketing actions of a specific organization. The macro environment
encompasses the broad environmental system within which all organizations must
conductbusiness. In one sense, it defines or creates the structure of the marketplace
for all organizations.
Marketing Environment:
Marketing environment means the actor and forces outside marketing that affect
marketing management’s ability to build and maintain successful relationship with
customers.
The marketing environment surrounds and impacts upon the organization. There are
two key elements to the marketing environment which are the microenvironment
and the macro environment. Well marketers build both internal and external
relationships. Marketers aim to deliver value to satisfied customers, so we need to
assess and evaluate our internal business environment and our external environment
which is subdivided into micro and macro.

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The marketing environment represents a mix between the internal and external
forces which surround an organization and have an impact upon it, especially their
ability to build and maintain successful relationships with target customers.
It encompasses the marketing team within an organization and includes all of the
outside factors of marketing the affect the team's ability to develop and maintain
successful customer relationships with their targeted customer group.
The collection of non-marketing influences that have an impact on a marketing
manager's success in forming and keeping favorable relationships with desirable
customers. The overall market environment for a business is made up of the macro
environment that consists of broader societal influences and the microenvironment
which includes company related influences.
In understanding the market environment, it is important to consider varying factors
that shape the actual movement of the market. Typically, these factors are identified
as being either microenvironment or macro environment in type and nature. While
considering each factor in turn, the process also calls for understanding how all
factors work in tandem to create the end effect on the marketplace.
The microenvironment aspects ofthe market environment typically focus oninternal
elements related to companies and how they perform in the marketplace. Factors like
the corporate structure and organization, the distribution of resources in the
operation, and even the policies and procedures that govern interaction between
owners, managers and employees are considered as part of this assessment. Along
with the characteristics and day-to-associated with the operational processesofthe
company, factors such as the working relationships with vendor partners,
comparisons with competitors, and the general public perception of the company
and its products will all play a role in the current status of the market environment.
Along with microenvironment factors to consider, there are also factors that are
classified as macro environment. Here, the focus is on such issues as the political
climate in which the products are produced and offered for sale, governmental
legislation that affects how goods are produced and sold, and even the impact of
current economic conditions on the ability of the company to remain competitive.
The concept of a macro environmental factor also has to do with the level of
consumer confidence that the products enjoyand how that confidence translates into
sales.

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Understanding the market environment as it relates to a given company requires not
only identifying all known factors but also having some sense of how those factors
blend together to create the setting in which the company must operate. By having
an idea of how all known factors come together to create today’s business climate,
it is easier to consider the potential for different market movements in the future,
based on the ebb and flow of the influence of different elements. By accurately
assessing where the market environment stands today and using that information to
project where the market is going tomorrow, the business can make changes in
procedures, production levels, or even marketing strategies in order to meet those
future challenges and ultimately continue to generate an acceptable level of revenue.
Kinds of Marketing Environment:
There are two kinds of marketing environment. These are
1. Micro environment
2. Macro environment
Micro Environment:
The microenvironment consists of the actors close to the company that affects its
ability to serve its customers. The microenvironment is made from individuals and
organizations that are close to the company and directly impact the customer
experience. Examples would include the company itself, its suppliers, other
marketing input from agencies, the markets and segments in which your business
trades, your competition and also those around you (which public relations would
call publics) who are not paying customers but still have an interest in your business.
The Micro environment is relatively controllable since the actions of the business
may influence such stakeholders.
Walmart’s Micro environment would be very much focused on immediate local
issues. It would consider how to recruit, retain and extend products and services to
customers. It would pay close attention to the actions and reactions of direct
competitors. Walmart would build and nurture close relationships with key
suppliers. The business would need to communicate and liaise with its publics such
as neighbors which are close to its stores, or other road users. There will be other

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intermediaries as well including advertising agencies and trade unions amongst
others.
Figure: Kinds of Marketing Environment
Macro Environment:
The macroeconomics consists of the larger societal forces that affect its ability to
serve its customers. It is much larger all-encompassing influences (which impact the
microenvironment) from the broaderglobal society. Here we would considerculture,
political issues, technology, the natural environment, economic issues and
demographic factors amongst others.
Again for Walmart the wider global macro environment will certainly impact its
business, and many of these factors are pretty much uncontrollable. Walmart trades
mainly in the United States but also in international markets. For example in the
United Kingdom Walmart trades as Asda. Walmart would need to take into account
local customs and practices in the United Kingdom suchas bank holidays and other
local festivals. In the United Kingdom 2012 saw the 60th anniversary of Queen
Elizabeth II’s reign which was a national celebration.

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The United States and Europe experience different economic cycles, so trading in
terms of interest rates needs to be considered. Also remember that Walmart can sell
firearms in the United States which are illegal under local English law. There are
many other macroeconomic influences such as governments and other publics,
economic indicators such as inflation and exchange rates, and the level nature ofthe
local technology in different countries. There are powerful influencers such as war
(in Afghanistan for example) and natural disasters (such as the Japanese Fukushima
Daiichi nuclear disaster) which inevitably would influence the business and would
be out of its control.
To summarize, controllable factors tend to be included in your internal environment
and your microenvironment. On the other hand less controllable factors tend to be
in relation to your macro environment. Why not list your own controllable versus
uncontrollable factors for a business of your choice?
Universe of sociological elements that affect a company's ability to serve its
customers or sell its goods and services. There are six major macro environment
forces: cultural, demographic, economic, natural, political, and technological. The
cultural environment includes institutions and other forces that affect the basic
values, behaviors, and preferences of the society-all of which have an effect on
consumer marketing decisions. The demographic environment includes the study of
human populations in terms of size, density, location, age, sex, race, occupation, and
other statistical information. The economic environment consists of all factors-such
as salary levels, credit trends, and pricing patterns- that affect consumer spending
habits and purchasing power. The natural environment involves all the natural
resources, such as raw materials or energy sources, needed by or affected by
marketers and marketing activities. The political environment includes all laws,
government agencies, and lobbying groups that influence or restrict individuals or
organizations in the society. The technological environment consists of those forces
that affect the technology and which can create new products, newmarkets, and new
marketing opportunities.
The factors of Micro Environment are:
1) Company: In designing marketing plans, marketing management takes other
company groups into account groups suchas top management, finance, research and
development, purchasing, operations and accounting. Aloof these integrated groups

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from the internal environment. Top management sets the companies mission,
objectives, broad strategies and plans made by top management. Marketing
management must work closely with other companydepartments. Other departments
have an impact on the marketing department’s plans and actions.
2) Suppliers: They are the people who provide necessary resources needed to
producegoods & services. Policies of the suppliers have a significant influence over
the marketing manager’s decisions because, it is laborers, etc. A companymust build
cordial & long-term relationship with suppliers the suppliers to a firm can also alter
its competitive position and marketing capabilities. Theseare raw material suppliers,
energy suppliers, suppliers of labor and capital. According to Michael Porter, the
relationship between suppliers and the firm epitomizes a power equation between
them. This equation is based on the industry condition and the extent to which each
of them is dependent on the other.
3) Intermediaries: They are the people who assist the flow of products from the
producers to the consumers; they include wholesalers, retailers, agents, etc. These
people create place & time utility. A company must select an effective chain of
middlemen, so as to make the goods reach the market in time. The middlemen give
necessary information to the manufacturers about the market. If a company does not
satisfy the middlemen, they neglect its products & may push the competitor’s
product.
Every producer has to have a number of intermediaries for promoting, selling and
distributing the goods and service to ultimate consumers. These intermediaries may
be individual or business firms. These intermediaries are middleman (wholesalers,
retailers, agent’s etc.), distributing agency market service agencies and financial
institutions.

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Figure: Factors of Micro Environment
4)Customers:The main aim ofproductionis to meet the demands ofthe consumers.
Hence, the consumers are the center point of all marketing activities. If they are not
taken into consideration, before taking the decisions, the company is bound to fail
in achieving its objectives. A company’s marketing strategy is influenced by its
target consumer
5) Competitors:Competitors are those who sell the goods and services of the same
and similar description, in the same market. Apart from competition on price, there
are like productdifferentiation. Therefore, it is necessaryto build an efficient system
of marketing. This will bring confidence and better results.
6) Public: It is duty of the company to satisfy the people at large along with its
competitors and the consumers. It is necessary for future growth. The action of the
company do influence the other groups forming the general public for the company.
A public is defined as ‘any group that has an actual or potential interest in or impact

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ona company’s ability to achieve its objective.’ Public relations are certainly a broad
marketing operation which must be fully taken care of.
Factors of Macro Environment:
These are the factors/forces on which the company has no control. Hence, it has to
frame its policies within the limits set by these forces:
1. Demographic Environment: Demography is the study of human Population, in
terms of age, size, Density, location, gender, race, Occupation and other statistics.
The demographic environment is of major interest to marketers because it involves
people and people make up markets. It is defined as the statistical study ofthe human
population & its distribution. This is one of the most influencing factors because it
deals with the peoplewho form the market. A companyshould study the population,
its distribution, age composition, etc. before deciding the marketing strategies. Each
group ofpopulation behaves differently depending upon various factors suchas age,
status, etc. if these factors are considered, a company can produce only those
products which suits the requirement of the consumers. In this regard, it is said that
“to understand the market you must understand its demography”.
2. Economic Environment: Economic environment consist of factors that affect
purchasing power and spending patterns. It is one of the most important factors. The
economic environment affects some issue. Such as
i. Changes in Income
ii. Changing consumer spending patterns
A company can successfully sell its products only when people have enough money
to spend. The economic environment affects a consumer’s purchasing behavior
either by increasing his disposableincome or by reducing it. Eg: During the time of
inflation, the value ofmoney comes down. Hence, it is difficult for them to purchase
more products. Income of the consumer must also be taken into account. Eg: In a
market where both husband & wife work, their purchasing power will be more.
Hence, companies may sell their products quite easily.
3. NaturalEnvironment: A company has to adoptits policies within the limits set
by nature. Natural environment involves the natural resources that are needed as

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inputs by marketers are affected by marketing activities. Marketers should be aware
of several trends in the natural environment. That are,
i. Shortage of natural Resources
ii. Increasing population
iii. Increasing govt.
Intervention in natural resource management prove the nature but cannot find an
alternative for it. Nature offers resources, but in a limited manner. A product
manager utilizes it efficiently. Companies must find the best combination of
productionfor the sake of efficient utilization of the available resources. Otherwise,
they may face acute shortage of resources. Eg: Petroleum products, power, water,
etc.
4. Technological Environment: Technological environment is forces that create new
technology, product, and market opportunities. This environment is blessing for our
market. Forthis environment, we get TV, automobile, credit card etc. Moreover, this
environment also damages our life. Nuclear weapon, assault rifles are the rust ofthis
environment. From customer’s point of view, improvement in technology means
improvement in the standard of living. In this regard, it is said that “Technologies
shape a Person’s Life”.
Every new invention builds a new market & a new group of customers. A new
technology improves our lifestyle & at the same time creates many problems. Eg:
Invention of various consumer comforts like washing machines, mixers, etc have
resulted in improving our lifestyle but it has created severe problems like power
shortage.
Eg: Introduction to automobiles has improved transportation but it has resulted in
the problems like air & noise pollution, increased accidents, etc. In simple words,
following are the impacts of technological factors on the market:
a) They create new wants
b) They create new industries
c) They may increase the cost of Research & Development.

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Figure: Factors ofMacro Environment
5. PoliticalEnvironment: Political environment is consists of laws, govt.
agencies, and pressure groups that influence and limit various organization and
individuals in a given society. It is very important environment for markets.
Markets considered two ways in political Environment.

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i. Legislation Regulating Business
ii. Emphasis on ethics and social responsibility action
6. Cultural Environment: Cultural environment is an institution and other forces that
affect society basic value, perception and behaviors. The following Characteristics
can afford making marketing decision. Such as
i. Persistence of cultural value
ii. Shifts in secondary cultural value
Most of us purchase because of the influence of social & cultural factors. The
lifestyle, values, believes, etc. are determined among other things by the society in
which we live. Each society has its own culture. Culture is a combination of various
factors which are transferred from older generations & which are acquired. Our
behavior is guided by our culture, family, educational institutions, languages, etc.
The society is a combination of various groups with different cultures & subcultures.
Each society has its own behavior. A marketing manager must study the society in
which he operates. Consumer’s attitude is also affected by their society within a
society, there will be various small groups, each having its own culture.
Eg: In India, we have different cultural groups such as Assamese, Punjabis,
Kashmiris, etc. The marketing manager should take note of these differences before
finalizing the marketing strategies.
Culture changes over a period of time. He must try to anticipate the changes new
marketing opportunities.
Demographic Environment:
Demography is the study of human populations in terms of size, density, location,
age, sex, race, occupation, and other statistics. It is of major interest to marketers
because it involves people and people make up markets. Demographic trends are
constantly changing. Some more interesting ones are.
1). The world's population (though not all countries) rate is growing at an explosive
rate that will soon exceed food supply and ability to adequately service the
population. The greatest danger is in the poorestcountries where poverty contributes
to the difficulties. Emerging markets suchas China are receiving increased attention
from global marketers.

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2). The most important trend is the changing age structure of the population. The
Population is aging because of a slowdown in the birth rate (in this country) and life
expectancy is increasing. The babyboomers following World War II have produced
a huge "bulge" in our population's age distribution. The new prime market is the
middle age group (in the future it will be the senior citizen group). There are many
subdivisions of this group.
a). Generation X--this group lies in the shadowof the boomers and lack obvious
distinguishing characteristics. They are a very cynical group because of all the
difficulties that have surrounded and impacted their group.
b). Echo boomers (baby boomlets) are the large growing kid and teen market. This
group is used to affluence on the part of their parents (as different from the Gen
Xers). One distinguishing characteristic is their utter fluency and comfort with
computer, digital, and Internet technology (sometimes called Net-Gens).
c). Generational marketing is possible, however, caution must be used to avoid
generational alienation. Many in the modern family now "telecommute"--work at
home orin a remote office and conduct their business using fax, cell phones, modem,
or the Internet In general, the population is becoming better educated. The work
forceis be-coming more white-collar. Products suchas booksand educationservices
appeal to groups following this trend. Technical skills (suchas in computers) will be
a must in the future. The final demographic trend is the increasing ethnic and racial
diversity of the population. Diversity is a force that must be recognized in the next
decade. However, companies must recognize that diversity goes beyond ethnic
heritage. One the important markets of the future are that disabled people.
Economic Environment:
The economic environment includes those factors that affect consumer purchasing
power and spending patterns. Major economic trends in the United States include:
1). Personal consumption (along with personal debt) has gone up (1980s) and the
early 1990s brought recession that has caused adjustments both personally and
corporately in this country. Today, consumers are more careful shoppers.

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2). Value marketing (trying to offer the consumer greater value for their dollar) is
a very serious strategy in the 1990s. Real income is on the rise again but is being
carefully guarded by a value-conscious consumer.
3). Income distribution is still very skewed in the U. S. and all classes have not
shared in prosperity. In addition, spending patterns show that food, housing, and
transportation still account for the majority of consumer dollars. It is also of note
that distribution of income has created a "two-tiered market" where there are those
that are affluent and less affluent. Marketers must carefully monitor economic
changes so they will be able to prosperwith the trend, not suffer from it.
Natural Environment:
The natural environment involves natural resources that are needed as inputs by
marketers or that are affected by marketing activities. During the past two decades
environmental concerns have steadily grown. Some trend analysts labeled the
specific areas of concern were:
1). Shortagesofraw materials Staples such as air, water, and wood products have
been seriously damaged and non-renewable such as oil, coal, and various minerals
have been seriously depleted during industrial expansion.
2). Increased pollution is a worldwide problem. Industrial damage to the
environment is very serious. Far-sighted companies are becoming "environmentally
friendly" and are producing environmentally safe and recyclable or biodegradable
goods. The public response to these companies is encouraging. However, lack of
adequate funding, especially in third world countries, is a major barrier.
3). Government intervention in natural resource management has caused
environmental concerns to be more practical and necessary in business and
industry. Leadership, not punishment, seems to be the best policy for long-term
results. Instead of opposing regulation, marketers should help develop solutions to
the material and energy problems facing the world.
4). environmentally sustainable strategies the so-called green movement has
encouraged or even demanded that firms produce strategies that are not only
environmentally friendly but are also environmentally proactive. Firms are

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beginning to recognize the link between a healthy economy and a healthy
environment.
Technological Environment:
The technological environment includes forces that create new technologies,
creating new productand market opportunities.
1). Technology is perhaps the most dramatic force shaping our destiny.
2). New technologies create new markets and opportunities.
3). The following trends are worth watching becoming better educated. The work
forceis be-coming more white-collar. Products suchas booksand educationservices
appeal to groups following this trend. Technical skills (suchas in computers) will be
a must in the future. The final demographic trend is the increasing ethnic and racial
diversity of the population. Diversity is a force that must be recognized in the next
decade. However, companies must recognize that diversity goes beyond ethnic
heritage. One the important markets of the future are that disabled people (a market
larger any of our ethnic minority groups).
Political Environment:
The political environment includes laws, government agencies, and pressuregroups
that influence and limit various organizations and individuals in a given society.
Various forms of legislation regulate business.
1). Governments develop public policy to guide commerce sets of laws and
regulations limiting business for the good of society as a whole.
2). Almost every marketing activity is subject to a wide range of laws and
regulations. Some trends in the political environment include:
1). Increasing legislation to:
a). Protectcompanies from each other.
b). Protecting consumers from unfair business practices.
c). Protecting interests of society against unrestrained business behavior.

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2). Changing government agency enforcement. New laws and their enforcement will
continue or increase. (See Table 3.2 for the various acts used to regulate and protect
commerce and our economy.)
3). Increased emphasis on ethics and socially responsible actions. Socially
responsible firms actively seek out ways to protect the long-run interests of their
consumers and the environment.
a). Enlightened companies encourage their managers to look beyond regulation and
"do the right thing."
b). Recent scandals have increased concern about ethics and social responsibility.
c). The boomin e-commerce and Internet marketing has created a new set of social
and ethical issues. Concerns are Privacy, Security, and Access by vulnerable or
unauthorized groups.
Cultural Environment:
The cultural environment is made up of institutions and other forces that affect
society's basic values, perceptions, preferences, and behaviors. Certain cultural
characteristics can affect marketing decision-making. Among the most dynamic
cultural characteristics are:
1). Persistence of cultural values: People's core beliefs and values have a high
degree of persistence. Core beliefs and values are passed onfrom parents to children
and are reinforced by schools, churches, business, and government. Secondary
beliefs and values are more open to change.
2). Shifts in secondarycultural values: Since secondarycultural values and beliefs
are open to change, marketers want to spot them and be able to capitalize on the
change potential. Society's major cultural views are expressed in:
a). People's views of themselves: People vary in their emphasis on serving
themselves versus serving others. In the 1980s, personal ambition and materialism
increased dramatically, with significant implications for marketing. The leisure
industry was a chief beneficiary

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b). People's views ofothers: Observers have noted a shift from a "me-society" to a
"we-society." Consumers are spending more on products and services that will
improve their lives rather than their image.
c). People’s views of organizations: People are willing to work for large
organizations but expect them to become increasingly socially responsible. Many
companies are linking themselves to worthwhile causes. Honesty in appeals is a
must.
d). People's views ofsociety: This orientation influences consumption patterns.
"Buy American" versus buying abroad is an issue that will continue into the next
decade.
e). People's view of nature: There is a growing trend toward people's feeling of
Mastery over nature through technology and the belief that nature is bountiful.
However, nature is finite. Love of nature and sports associated with nature are
expected to be significant trends in the next several years.
f). People's views ofthe universe: Studies of the origin of man, religion, and
Thought-provoking ad campaigns are on the rise. Currently, Americans are on a
spiritual journey. This will probably take the form of "spiritual individualism."
Company:
A company refers to a group of all individuals working in different capacities and
the practices and culture they follow. In micro-environment analysis, nothing is as
important as self-analysis, which is done by the organization itself.
Inside the Company marketing managers must work closely with other company
departments. They simply cannot work within a realm of isolation. They have to
depend on, and take other groups, into account. These groups can consist of top
management, finance, research and development, purchasing, operations, and
accounting. The reality is that these other departments have a direct impact on the
marketing department's plans and actions. In order for these plans and actions to
succeed, the "marketing concept" contends that all of these functions must be
"thinking consumer", and they must all have bought into the the strategic marketing
plan in order to work in harmony to provide customer satisfaction and value.

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Top management can directly assist and fast track your plans, or they can stop them
in their tracks. Finance has a direct influence on your budget, and whether money
is available for your strategic plans. Research & development has direct influence
on product development (think what you are selling). Purchasing, operations and
accounting all influence staffing, media execution and how well you stay on budget.
Supplier:
Suppliers provide businesses with the materials they need to carry out their business
activities. A supplier's behavior will directly impact the business it supplies. For
example if a supplier provides a poor service this could increase timescales or
product quality. An increase in raw material prices will affect an organization’s
Marketing Mix strategy and may even force price increases. Close supplier
relationships are an effective way to remain competitive and secure quality
products. Raw material and other inputs or finished goods supplies to the firm. The
performance of the suppliers can influences the success of firm to a greater extent.
Delay in delivery of supplies, supply of low quality inputs, high cost of inputs,
irregularity in supply of inputs would affect the production of the firm. Therefore
every firm must build good relations with their suppliers so that bothof them benefit
in the long run. The firm may provide technology, capital, managerial assistance to
the suppliers so that they can improve their performance. The bargaining power of
the supplier gets maximized in the following situations:
a) The seller firm is a monopoly or an oligopoly firm.
b) The supplier is not obliged to contend with other substitute products for sale to
the buyer group.
c) The buyer is not an important customer.
d) The suppliers’ productis an important input to the buyer’s business and finished
product.
e) The supplier poses a real threat of forward integration.

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Marketing Intermediaries:
Market intermediaries are either individuals or business houses who cometo the aid
of the company in promoting, selling and distributing the goods to the ultimate
consumers. They are Middlemen (wholesalers, retailers and agents), distributing
agencies, market service agencies and financial institutions. Most of the companies
find, it is too difficult to reach the consumers. In such a cases the agents and
distribution firms help to reach the product to the consumer.
Any type of intermediary the company must take into active consideration, the
following aspects:
(i) The company has also to constantly review the performance of both middlemen
and others helping its efforts periodically. If necessary, it may take recourse to
replacement of those who no longer perform at the expected level.
(ii) Middlemen come into being to help overcome the discrepancies in quantities
place, time, assortment and possession that would otherwise exist in a given
condition.
(iii) It is advantageous and also efficient to work through the established Marketing
channels instead of creating one and thus going for experiments.
(iv) The manufacturer has to decidethe mostcost-effective method ofintermediaries
to reach the product to consumer that will help to increase the profit.
Customer:
They are the key element in the micro environment. In the competitive market
winning a customeris a difficult task for the firms. Therefore they should formulate
strategies to fulfill the customer needs. Customers have varied taste and preferences
hence the firm must monitor their changing needs and capitalize them by providing
suitable products and services.
The least controllable of the microenvironments affecting your small business is the
one where customers live. Long-term customers may ask questions if you end up in
the media for a problem as serious as Toyota's faulty accelerator, but their previous

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experience with your products or services means they're more likely to turn to you
after the problem is resolved. New customers may be affected by any aspectof your
business. It's up to you to attract new customers through your quality and ability to
fulfill their needs. According to Peter. F. Drucker, “There is only one valid definition
of business purpose that is to create a customer.” The business enterprises aim to
earn profit through serving the customer demand. It now thinks more in terms of
profitable sale rather than more sales volume for its sake. Todaymarketing of a firm
begins and also ends with the customers. Now a days, a business firm to be
successful, must find customers for its products. This is the reason the customers
thus constitute the most important element in the micro environment of business.
Products sales depend mainly on the degree of consumer satisfaction.
In fact, this is a reason that gives more importance to customer satisfaction surveys.
Now every business firm set-up systems to regularly watch customer attitude and
customer satisfaction, because today it is universally accepted that the satisfaction
of customers is the base for company’s success. Normally the customers are not in
a same group, they are individuals, business enterprises, institutions and
government. From the company’s point of view it is always better to have customer
from various groups and legions for that easily sustains demand for the company’s
product.
The customers may be classified as:
a) Ultimate customers: These customers may be individual and householders.
b) Industrial customers: These customers are organization which buy goods and
services for producing other goods and services for the purpose of other earning
profits or fulfilling other objectives.
c) Resellers:They are the intermediaries who purchase goods with a view to resell
them at a profit. They can be wholesalers, retailers, distributors, etc.
d) Government and othernon-profit customers:Thesecustomers purchasegoods
and services to those for whom they are produced, fortheir consumption in most of
the cases.
e) International customers: These customers are individual and organizations of
other countries who buy goods and services either for consumption or for industrial
use. Such buyers may be consumers, producers, resellers, and governments.

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Competitors:
Competitors influence your actions. If a competitor launches a new product for
example, you will review your own marketing plan. Competitors, whom are part of
your microenvironment and competefor your customers, might try to take your best
employees and might distribute through the same channels as your company.On
some occasions you might collaborate with a competitor. There are examples of
alliances and joint ventures in the car industry such as those between Toyota,
Peugeot and Citroen in Europe.
Any company faces three types of competition:
a) Brand Competition: It is a competition between various companies producing
similar products. Eg: The competition between BPL & Videcon companies.
b) The Product Form Competition: It is a competition between companies
manufacturing products, which are substitutes to each other Eg: Competition
between coffee & Tea.
c) The Desire Competition: It is the competition with all other companies to attract
consumers towards the company. Eg: The competition between the manufacturers
of TV sets & all other companies manufacturing various products like automobiles,
washing machines, etc.
Hence, to understand the competitive situation, a company must understand the
nature of market & the nature of customers. Nature of the market may beas follows:
I. Perfect Market
II. Oligopoly
III. Monopoly
IV. Monopolistic Market
V. Duopoly

21. Page 21 of 23
Publics:
According to Philip Kotler, “A public is any group that has an actual or potential
interest in or impact on a company’s ability to achieve its objectives.” The
environmentalists, consumer protection groups, media persons and local people are
some of the well-known examples of publics.
The company has a duty to satisfy the peopleat large along with competitors and the
consumers. It is an exercise which has a larger impact on the well-being of the
companyfor tomorrow s stay and growth. Create goodwill among public, help to get
a favorable response for a company. Kotler in this regard has viewed that.
“Companies must put their primary energy into effectively managing their
relationships with their customers, distributors and suppliers. Their overall success
will be affected by how other publics in the society view their activity. Companies
would be wise to spend time monitoring all their public understanding their needs
and opinions and dealing with then constructively.” In the modern business public
have assumed important role and their presence in the micro environment of
business. Publices are groups that may have a significant impact on marketing
activities formulated to contribute to customers' satisfaction with a product and an
organization. For example, satisfied customers are a public that contribute to a
marketing program through positive word of mouth. Consumer advocates and
watchdog groups are examples of publics that may hinder marketing activities
through negative word-of-mouth. The publics includes NGOs, consumer forumsetc.
These organizations are there to protect the interests of the customers and society.
The individuals can seek justice by approaching the publics. The publics will also
fight against the firms who producecontroversialadvertisement, products thataffect
the society, environmental pollution etc.
Public may be various types. They are:
a) Press: This is one of the most important group, which may make or break a
company. It includes journalists, radio, television, etc. Press peopleareoften referred
to as unwelcome public. A marketing manager must always strive to get a positive
coverage from the press people.
B) Financial Public: These are the institutions, which supply money to the
company. Eg: Banks, insurance companies, stockexchange, etc. A company cannot
work without the assistanceof these institutions. It has to give necessaryinformation
to these public whenever demanded to ensure that timely finance is supplied.

22. Page 22 of 23
c) Government: Politicians often interfere in the business for the welfare of the
society & for other reasons. A prudent manager has to maintain good relation with
all politicians irrespective oftheir party affiliations. If any law is to bepassed, which
is against the interest of the company, he may get their supportto stop that law from
being passed in the parliament or legislature.
d) General Public: This includes organizations such as consumer councils,
environmentalists, etc. as the present day concept of marketing deals with social
welfare, a company must satisfy these groups to be successful.
Conclusion:
Businesses cannot always control micro environment factors but they should
endeavor to manage them along with Macro Environment and Micro Environment
factors. One factor can be part of a firm's micro environment and macro
environment. The media can be used one off media story about the firm may affect
daily operations and will therefore be part of the firm's micro environment.
Firms should not concern themselves too much about which of the three categories
a factor fits into. Instead firms should ensure that they have correctly identified all
of the factors which make up their marketing environment and plan how to manage
them for the firm's benefit.
References:
1.http://www.businessdictionary.com/definition/marketing-
environment.html#ixzz3CXbeqkL7
2.http://www.businessdictionary.com/definition/market-
environment.html#ixzz3CXbrFwD3

23. Page 23 of 23
3. hubpages.com/
4. www.yourarticlelibrary.com/
5. wiki.answers.com
6. www.academia.edu/
7. www.tnau.ac.in/eagri/.../lec09.p.
8. yourbusiness.azcentral.com
8. Principles of marketing
By Philip Kotler (13th
Edition)
9. Marketing Management
By Philip Kotler (13th
Edition)