Analysis of the marketing environment microenvironment

Micro Environment Factors The suppliers:

Analysis of the marketing environment microenvironment

Micro Environment Introduction Micro environment factors, are factors close to a business that have a direct impact on its business operations and success. Before deciding corporate strategy businesses should carry out a full analysis of their micro environment. In this article we discuss common micro environment factors.

To learn about other factors, that are part of a firm's Marketing Environment read our articles about Macro Environment Factors and Internal Environment Factors. Customers As all businesses need customers, they should be Centred Orientated around customers. The firm's marketing plan should aim to attract and retain customers through products that meets their "wants and needs" and excellent customer service.

Employees Employing staff with relevant skills and experience is essential. This process begins at recruitment stage and continues throughout an employee's employment via ongoing training and promotion opportunities.

Training and development play a critical role in achieving a competitive edge; especially in Service Sector Marketing.

If a business employs staff without motivation, skills or experience it will affect customer service and ultimately sales. Suppliers Suppliers provide businesses with the materials they need to carry out their business activities.

A supplier's behaviour will directly impact the business it supplies. For example if a supplier provides a poor service this could increase time scales or product quality. An increase in raw material prices will affect an organisation's Marketing Mix strategy and may even force price increases.

The Impact Of Micro and Macro Environment Factors on Marketing There are two kinds of external marketing environments; micro and macro. These environments’ factors are beyond the control of marketers but they still influence the decisions made when creating a strategic marketing strategy. Sargeant and Jay () stated SWOT analysis contains specific indicators as to the key determinants of success in the company whereas most authors defined the marketing environment comprising microenvironment. A marketing department functions in a sales environment that is impacted by factors external to the organization and therefore beyond its control. These factors are either "macroenvironmental" or.

Close supplier relationships are an effective way to remain competitive and secure quality products Shareholders As organisations require investment to grow, they may decide to raise money by floating on the stock market i. The introduction of public shareholders brings new pressures as public shareholders want a return from the money they have invested in the company.

Shareholder pressure to increase profits will affect organisational strategy.

Micro Environment of Business: 6 Factors of Micro Environment of Business

Relationships with shareholders need to be managed carefully as rapid short term increases in profit could detrimentally affect the long term success of the business. Organisations need to mange the media so that the media help promote the positive things about the organisation and reduce the impact of a negative event on their reputation.

Some organisations will even employ public relations PR consultants to help them manage a particular event or incident. Consumer television programmes with a wide and more direct audience can also have a very powerful impact on the success of an organisation.

Some businesses recognise this and will change their reaction when consumers mention that they are going to contact a consumer television programme or the newspapers about the business.

Competitors The name of the game in marketing is differentiation. Can the organisation offer benefits that are better than those offered by competitors?

Does the business have a unique selling point USP? Competitor analysis and monitoring is crucial if an organisation is to maintain or improve its position within the market. The market can move very quickly for example through a change in trading conditions, consumer behaviour or technological developments.

As a business it is important to examine competitors' responses to these changes so that you can maximise the impact of your response.The following are the major difference between micro and macro environment: Microenvironment is the environment which is in immediate contact with the firm.

The environment which is not specific to a particular firm but can influence the working of all the business groups is known as Macro Environment.

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Micro and Macro Marketing Environment Essay. specific indicators as to the key determinants of success in the company whereas most authors defined the marketing environment comprising microenvironment The tool tasked with conducting an external analysis of the macro environment is PEST while the external micro environment will .

The Impact Of Micro and Macro Environment Factors on Marketing There are two kinds of external marketing environments; micro and macro.

Analysis of the marketing environment microenvironment

These environments’ factors are beyond the control of marketers but they still influence the decisions made when creating a strategic marketing strategy. This customer factor of a marketing microenvironment can be further divided into business and institutional customers and state, city and municipal governments customers.

Our microenvironment is the totality of people and other connected groups of people/organisations that are very close to the business, and which all have a direct . Nov 09,  · micro environmental analysis This is also known as the task environment and affects business and marketing at the daily operating level.

While the changes in the macro environment affect business in the long run, the effect of micro environmental changes are noticed almost immediately.

Microenvironment