Abstract

(Macro-Micro environment for service firms)

The term micro-environment denotes those elements over which the marketing firm has control or which it can
use in order to gain information that will better help it in its marketing operations. In other words, these are
elements that can be manipulated, or used to glean information, in order to provide fuller satisfaction to the
company’s customers. The objective of marketing philosophy is to make profits through satisfying customers.
This is accomplished through the manipulation of the variables over which a company has control in such a way
as to optimise this objective. The variables are what Neil Borden has termed ‘the marketing mix’ which is a
combination of all the ‘ingredients’ in a ‘recipe’ that is designed to prove most attractive to customers. The
‘four Ps’ stands for Product, Price, Place and Promotion.

This fifth P (people) are those who contact customers on a regular basis with the objective of ultimately gaining
orders and these people comprise the salesforce. We can thus see that selling is a component part of overall
marketing. There are two more Ps for service marketing.

The term macro-environment denotes all forces and agencies external to the marketing firm itself. Some of
these forces and agencies will be closer to the operation of the firm than others, e.g. a firm’s suppliers, agents,
distributors and other distributive intermediaries and competing firms. These ‘closer’ external constituents are
often collectively referred to as the firm’s proximate macro-environment to distinguish them from the wider
external forces found, for example, in the legal, cultural, economic and technological sub-environments.

This consists of people, organizations and forces within the firm’s immediate external environment. Of
particular importance to marketing firms are the sub-environments of suppliers, competitors and distributors
(intermediaries). These sub-environments can each have a significant effect upon the marketing firm.

The supplier environment The distributive environment The competitive environment

 The wider macro-environment:-

1. Political and legal factors

2. Economic factors
3. Social and cultural factors
4. Technological factors
5. Other macro-environmental factors

Author:- Co-author:
Prem kumar sinha (DOMS, MBA-II) Pankaj chaudhari (DOMS, MBA-II)
email:-premji0085@gmail.com email:-pankajchaudhari@rediffmail.com
Mobile:-7620898110 Mobile:-8055345396