MM - The Marketing Environment

Marketing Environment – Marketing environment refers to the actor and forces inside and outside to the firm that affect to the marketing operation.

The Marketing Environment

The micro-environment - The micro-environment affects the organization directly. It refers to the environment that most closely linked to the firm. It involves suppliers, customer, competitor, intermediaries and public.

Supplier

• Marketers must watch supply availability and pricing
• Effective partnership relationship management with suppliers is essential

Marketing Intermediaries

• Help to promote, sell and distribute goods to final buyers
• Include resellers, physical distribution firms, marketing services agencies and financial intermediaries
• Effective partner relationship management is essential

Customer
Types of customer (Consumer, Business, Reseller, Government, International)

Competitor

• Conducting competitor analysis is critical for success of the firm
• A marketer must monitor its competitors’ offerings to create strategic advantage

Public - A group that has an actual or potential interest in or impact on an organization

Macro Environment - The Macro environment consist all factor that influence the firm which can not be influenced by the marketing effort.

Demographic

• Ratio of urban to rural population
• High population growth rate
• Aging of population Ratio of minorities
• Education level
• Gender structure

Technology

• Invent of computer/internet
• E-commerce
• Change in lifestyle
• Change in business pattern

Economic factor

• Business cycles marked i.e. recessions & booms
• Gross domestic product (GDP)
• Real income
• Inflation
• Interest rates

Competition

• Brand competition
• Substitute products
• General competition

Social & cultural factors

• Change in consumption pattern
• Difference in life style
• Two income families
• Changing gender roles
• A premium on time
• Health & environmental issues

Political & Legal factors

• Monetary & fiscal policies
• Social legislation & regulations
• Government relationship with industries
• Legislation special related to marketing

Market- Market refer to place where buyers and sellers meet, goods & services are offered for sale, and transfers of ownership occur.

Internal Environment - The internal environment consist factor that are internal to organization. These factors have direct interaction with the business organization. Good Coordination among various departments creates good internal environment and lack of coordination among various departments damaging internal environment.

Financial Resources

• Expansion / Retrenchment
• Size of operations
• Strength of the company
• Lease / buy options
• Advertising

Location - Prime Location to Reduced Operating Costs

Production

• Production Facilities To Meet The Quality
• Operation On Maximum Capacity

Research and Development

• Customer Satisfaction From Existing Products
• Product Innovation
• Keeping An Edge Over The Competitor

Human Resource

• Employing Experts
• Employee An Asset Rather Than A Liability

Company Image

• Perception Of The Consumer
• Providing Meaningful Benefit To The Customer