The Marketing Environment (Micro-environment (The elements that impinge…
The Marketing Environment
The elements that impinge directly on a company
Crucial part of an organizations micro-environment
Organizations should understand market demand and adapt to the costumers needs
Crucial part of the micro-environment as well
Direct (similar product)
Indirect (same need, different product)
Provide inputs to the business. They provide the goods and services that an organization transforms into added value products for costumers.
Vital for costs savings in highly competitive markets.
Important to have ethical suppliers and supply chains
Crucial interface between an organization and the final costumers. Help an organization to promote, sell, and distribute goods.
Have ability to mobilize public opinions and groups
Want to maximize return on investment
Direct relationship and dealings with these aspects of the environment
Directly or indirectly affect the organization
The marketing environment is everything that surrounds and has an effect on a system (Palmer)
Those conditions impending or potentially impending on marketing (Evans)
Encompasses things that are beyond the immediate environment but can never less affect an organization (Pestl)
Economic Growth and distribution of income are important factors for business
The economy has a profound effect on costumers
Marketers should always focus on macro economical indicators such as...
Multiplier and accelerator effects
Changes in government expenditure affect economic sectors, marketers should try to figure out how
Changes in taxation can also influence the way the consumer spends
pressure groups pressuring politicians
One of the least predictable environments surrounding the macro environment
Governments are responsible for protecting the public interest at large, imposing further constraints on the activities of firms
Regulation has a profound effect on the functioning of companies
Social/Cultural environment (demographic)
Demography is the study of human populations
in terms of size, density, location, age, sex, occupation, education and other characteristics.
Marketers should study the population trends of their respective countries and societies such as...
Changing age structure
Ageing populations in developed countries
Better educated / bigger white collar population
Increases in multiculturalism
Non marketing factors within an organization own environment
important to be continuously monitored