Marketing environment consists of forces and factors that usually affect the management’s ability to maintain and develop specific transactions with its target customers. An outside and inside view is necessary for companies aiming for excellence. The environment provides both opportunities and threats.
Two Forces Of Environment
Microenvironment – this environment is made up of forces close to the company that affects its ability to serve its customers more effectively than competitors can. As marketing manager, it’s not that simply focusing on target market’s needs.
Each of these factors has its corresponding role which directly affects the company’s ability to perform its service to the customers as a whole. These factors in the company’s microenvironment consist of the supplier, middleman, customers, competitors, public, company and marketing intermediaries.
Macro-environment – the larger societal forces that affect the whole microenvironment are called macro-environment. The company’s macro-environment is where the company should continually search for opportunities and possible threats.
These forces are “non-controllable” and the company should consider monitoring its increasing impact on the global market especially the changes it brings into the current business environment.
The success of the company is affected by its microenvironment from the company, supplier, competitor, marketing intermediaries, customer, and to the public.
Company – it provides the employees, customers, and other stakeholders with both the identity of the organization and the understanding of where it has to go.
Supplier – it consist of firms and individuals that provides the resources needed by the company to produce its goods and services.
Competitors – these are companies that produce the same products or services and offer unlimited choices to their customers.
Marketing Intermediaries – they are firms that help a company to promote, sell, and distribute goods to the buyers.
Customers – these are the persons, households or firms who buy goods and services.
To have an effective marketing decision that would fit to appropriate marketing situations, it usually starts by considering and understanding the different environment factors that affect the company.
Marketing environment factors are interrelated, and they will affect the managerial process and production efficiency of the business firms and organizations.
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