MARKETING ENVIRONMENT

THE MARKETING ENVIRONMENT

o The forces that directly and indirectly influence an

organization’s capability to undertake its business.

o The trading forces operating in a market place over

which a business has no direct control ,but which shape
the manner in which the business function and is able
to satisfy its customers.
 COMPONENTS OF MARKETING
ENVIRONMENT
Internal environment : Forces and actions inside the firm
that affect the marketing operation composed of internal stake
holders and the other functional areas within the business
organization.

External environment

o Macro environment
o Micro environment
 MICRO ENVIRONMENT

o The factors in the immediate environment .

MACRO ENVIRONMENT

o Broad forces which shape the character of

opportunities and threats.
 WHY IS IT IMPORTANT?
o An understanding of macro and micro marketing
environment forces is essential for planning.

o Helps a business to compete more effectively against its

rivals.

o Assists in the identification of opportunities and threats.

o Enables an organization to take advantage of emerging

strategic opportunities.
 THE INTERNAL ENVIRONMENTAL

Factors that are internal to the organization are known as the

Internal Environment. They are generally audited by applying
the Five Ms which are Men, Money, Machinery, Materials and
Markets. The Internal Environment is as important for
managing change as the external. As marketers we call the
process of Managing Internal change Internal Marketing.
 THE INTERNAL ENVIRONMENT

It includes the following:

o The human resource department.

o The operations department.
o The accounting and finance department.
o The research and development department.
INTERNAL PROCESSES AND PROCEDURES

o Allocation of responsibilities within the organization.

o Resources availability .
o The extent to which the major functional areas work
together supporting the marketing function to be customer
oriented
o The culture of organization.
o The attitude of internal stakeholders.
 Micro Environment
o The forces close to the company that affects its ability to serve.
o It comprises all those organizations and individuals who
directly affect the activities of a company.
o All factors which impact directly on a firm and its activities in
relation to a particular market.

1. Suppliers
2. The market channel
3. Customers
4. Competitors
5. Public
 Suppliers

o Suppliers are either individuals or business houses.

o They provide resources needed by the company.
o The developments in the suppliers environment have a substantial
impact on the marketing operations of the company .
o Companies can lower their supply costs and increase product quality
to gain competitive advantage in the market.
o Supply shortages have to be fully monitored and plans should be made
to avoid it.
 Market intermediates

o They are either business houses or individuals.

o They help the company in promoting, selling and

distributing the goods to customers.

o They are middlemen, distributing agencies, market

service agencies and financial institutions.