The Micro-environment consists of the factors close to the business (usually involving business relationships) that affect its ability to serve its customers. We can break the micro-environment down into specific segments:
Inside the Company, marketing managers must work closely with other company departments. 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. Marketers must work in harmony with other company departments to create customer value and relationships.
Suppliers provide the resources you need to produce the products and services that you are selling. Supplier's not only supply you with resources, they also can partner with you in the customer value delivery system.
They can include resellers, physical distribution firms, marketing service agencies, and financial intermediaries.
These include wholesalers and retailers. Resellers often perform their tasks more cheaply than the company can perform by itself.Physical ie: from the factory to a warehouse and then to the stores.
Marketing Services Agencies usually consist of marketing research firms, advertising agencies, consultants, and media firms. As example, Advertising agencies help provide freshcreative ideas for your campaigns and strategic marketing efforts.Financial Intermediaries help you use money. They typically include banks, credit companies, insurance companies, other businesses that help you conduct financial transactions or insure against the risks associated with the buying and selling of goods and services.
The marketing concept states that in order for your marketing to be successful, your business must provide greater customer value and satisfaction thanyour competitors do. You must do more than just give your customers what you think they need, or they say they need. Marketer must gain a strategic advantage by positioning the products and services against the competitors in the minds of the customers.
Publics can help, or hinder your ability to get your message out to your customers, and collect value from them.
Customers are the key to sales. If you don't have customers, you can't sell anything. Managers must continually study customer needs and try to anticipate how they are developing so they can meet these needs effectively now and in the future. However not all customers are the same. Managers must actively study five distinct categories of customer markets.
What is Micro Environment ???
Micro environment consists of the actors close to the
company that affect its ability to serve its customers,
the company, suppliers, marketing intermediaries,
customer markets, competitors, and publics.
1. The Company
Marketing success requires building
relationships with other company
Top management, finance, Research &
Development, purchasing, operations,
Suppliers are firms and
individuals that provide the
resources needed by the
They are an important link
in the company’s overall
customer “value delivery
3. Marketing Intermediaries
Marketing intermediaries are
businesses that help the
company to promote, sell, and
distribute its goods to final
• They are those who hold and sell company’s
• Wholesaler and retailer.
Physical Distribution Firm
• They help the company to stock and move
goods from their points of origin to their
• Transportation and warehousing.
Marketing Service Agencies
• They help the company target and promote its
• Advertising agencies, Media firms, marketing
research firms, etc.
• They help finance transactions and insure
• Banks, credit companies, insurance company,
Provide greater customer
value and satisfaction than
its competitors do.
A marketer must monitor
its competitors’ offerings
to create strategic
A public is any group that has an actual or
potential interest in or impact on an
organization’s ability to achieve its objectives.
A company should prepare a marketing plan for
all of their major publics.
Types of Public
Financial publics influence the company’s ability to obtain
funds — banks, investment houses, and stockholders.
Media publics carry news, features, and editorial opinion—
newspapers, magazines, radio and television stations.
Government publics influence product safety and truth in
Citizen-action publics include consumer
environment groups, and minority groups
Local publics include neighborhood residents and community
General publics influence the company’s public image
Internal publics include workers, managers, volunteers, and
Customers are the actual buyer
of our goods and services.
Managers must actively study
five distinct categories of
• Made up of individuals and household units. These
customers buy products and services for their own
• Purchase products and services that will be further
processed or used in their own internal business
• Purchase products and services specifically to resell
them to others for a profit.
• Government agencies that buy goods and services in
order to produce public services or transfer them to
those that need them
• Buyers who reside in other countries. These buyers
include consumers, producers, resellers and even
APRIL 2011 (QUESTION 1)
Discuss six (6) microenvironment forces that can affect
a marketing decision making effort.
JANUARY 2013 (QUESTION 6)
Marketers today would have to deal with various
internal and external forces in order to maintain good
and continuous relationship with their customers.
Discuss the six (6) forces in the internal marketing
environment that affects the company's decision.