3. What Is A Marketing Environment?
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.
The marketing environment consists of the
❑Micro Environment
❑Macro Environment.
Muhammad Sajid (16989) 3
4. Micro Environment
Micro environment refers to the forces closely influencing the company and directly
affect the organization’s relationships. These forces can be controlled or influenced.
Micro-Environment Factors
▪ Company
▪ Suppliers
▪ Marketing Intermediaries
▪ Competitors
▪ Public
▪ Customer
Muhammad Sajid (16989) 4
5. Company
Refers to the internal environment of the company.
This includes:
• Top Management
• R&D
• Accounting
• Operations
• Finance
• Purchasing
For example: Yahoo! & British Airways
Muhammad Sajid (16989) 5
6. 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.
For example: Amrit Foods (Mc'D) & Farmers
Muhammad Sajid (16989) 6
7. Marketing Intermediaries
Help to sell, promote, and distribute goods.
Intermediaries take many forms:
• Resellers
• Physical distribution firms
• Marketing services agencies
• Financial intermediaries
For example: Infinity Advertising & Mullen Lowe Lintas
Muhammad Sajid (16989) 7
8. Competitors
Include companies with similar offerings for goods and services. To remain
competitive a company must consider who their biggest competitors are while
considering its own size and position in the industry. The company should
develop a strategic advantage over their competitors.
For example: Flipkart & Amazon, HP & Dell
Muhammad Sajid (16989) 8
9. Public
Any group that has an interest in or impact on the organization’s ability to meet its
goals.
For example: Shareholders & Debenture Holders
Muhammad Sajid (16989) 9
10. Customer
The least controllable of the micro-environments affecting the businesses 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 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 aspect of your business. It's up to you to attract
new customers through your quality and ability to fulfill their needs.
For example: Recalling of the Mahindra XUV 500
Muhammad Sajid (16989) 10
11. Macro Environment
The macro-environment refers to all forces that are part of the larger society and
affect the micro-environment.
These forces cannot be controlled or influenced.
Muhammad Sajid (16989) 11
13. Demographic
The study of human population especially with reference to age, sex, education,
occupation, income size, density, geographic concentration and dispersion urban
and rural population, etc.
For example: Colgate Sensitive & Mc-Cain
Muhammad Sajid (16989) 13
14. Economic
Represent the wider economy so may include economic growth rates, levels of
employment and unemployment, costs of raw materials such as energy, petrol and
steel, interest rates and monetary policies, exchange rates and inflation rates. These
may also vary from one country to another.
For example: Singapore & New Zealand
Muhammad Sajid (16989) 14
15. Political
Represent the wider economy so may include economic growth rates, levels of
employment and unemployment, costs of raw materials such as energy, petrol and steel,
interest rates and monetary policies, exchange rates and inflation rates.
These may also vary from one country to another.
For example: Singapore & New Zealand
Muhammad Sajid (16989) 15
16. Technological
Technological environment consists of those factors related to knowledge
applied and the materials and machines used in the production of goods and
services that have an impact on the business of an organization.
For example: Recent launch of 4G
Muhammad Sajid (16989) 16
17. Natural
Companies often work with different kinds of equipment, machinery and chemical-
producing agents.
In effect, a business' day-to-day operations can pose an ongoing threat to the natural
environment.
To reduce the likelihood of damage to the environment, federal and state regulations
require businesses consider certain natural environmental factors in their overall
operations plans.
For example: Chipko Movement affecting the mining industry
Muhammad Sajid (16989) 17
18. Socio-Cultural
The social environment of a business consists of the class structure and mobility, social
roles, nature of the social organization and development of social institution.
Basically the class structure in the society depends upon the occupation of people and
their income levels.
For example: Maruti Suzuki Workers Strike in 2011
Muhammad Sajid (16989) 18
19. Legal
Legal factors are those which have become law and regulations and therefore
needs to be complied with.
For example:
Setting up of solar on the roofs of flats in societies.
Muhammad Sajid (16989) 19