Marketing Environment is the Marketing activities of every business organisation is influenced by a large numbers of uncontrollable factors that surrounds the company which is known as
According to a source, a company marketing environment consists of the actors and forces outside the marketing that affects marketing ability to develop and maintain successful transaction with its target consumers.
Marketing environment are important based on the fact that the environment is changing and there is uncertainty, some of these environmental factors are un-controllable.
However, successful organisations knows the important of constantly monitoring and adapting to the changing environment, therefore it is the responsibilty of the organisation to link the resources to the requirements of customers. this is done within the frameworks of Opportunites and threats in the external environment.
The Element Of Marketing Environment.
Marketing environment can be classified in two main categories which are the micro environment and the macro environment.
What Is Micro Environment?
Micro Environment refers to the company Immediate environment , that is those environment factors that aren’t in proximty they include the companies own capabilites to produce and serve the consumers need, dealers and distributors, the competitors, suppliers, marketing Intermediaries, public, customers etc.
These are also the groups of people who affects the companies prospect directly.
Impact Of Micro Environment.
1.Customers: that is the B2B and B2C, local or international e.t.c are the reasons to buy a product to play a large role in how an organisation can approach the marketing of its products and service.
2. Suppliers: Suplliers can control the sucess of a business when they hold power, the supllier holds the power when they are only or the largest supplier of their goods, when the switching cost of supplier is high, when the buyer is not vital to the supplier’s business and when the supplier product is a core part of the buyer’s finished product or business .
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3.Competition: Those who sell the same or similar products and services as your organization or as your market competition and the way they sells needs to be taken into consideration.
Their pricing system and product diffrentiation can also impact your organisation or business, however your organisation can take advantages of these factors to reap better results and get ahead of the competitors.
4. Intermediaries: If the product your organisations produces is taken to market by third-party resellers or market Intermediaries such as retailers, wholesalers, etc, then your organisation marketing sucess will be impacted by those 3rd-party resellers.
For instance, if a Retailer is a reputable brand then this reputation can be leveraged in the marketing of the product.
5. The General Public: Your organisation is a duty to satisfy the public, any actions of your organisation must be considered from the angle of the general public, the public also have the power to help you reach your goals and they can also prevent you from achieving them.
What Is Macro Environment?
The Macro environment consists of larger societal forces that affects the organisations but also it competitors and other elements in the macro environment these include; Demographic, Economic, Natural, Technological, Political and cultural forces.
The Impact of Macro Environment.
- The Demography: The study of human population in terms of size, density, age, gender, race, occupation and other statistics comes under the demographic environment. The demographic environment itself is affected by changes in the mix of age groups in the population.
For instance, if the population beomes older, this will lead to a rise in demand for product and services consumed by older people and the similar fall in demand and product consumed by younger people.
2. The Economic: The economic environment is important to marketers because it affects the amout of money people have to spend on product and services, one of the components of the economic environment is the distribution of income.
Economics around the world not only vary in their absolute or total level of wealth, but also in how their wealth is spread within the population. for instance, poor countries can be classified either as those who have a highly unequal spread of wealth.
The rich group of countries may be market for luxury goods while the poor group of countries may be marketers of in-expensive goods for the mass market.
3. The Naturals: Natural resources needed as input by marketers are reflected as marketers, this is important to marketers because the source of many raw materials and fluctuation in supply can affect the prices paid for purchases, there is increasing pressures from public opinions as to where raw materials are sourced from and their reflect on the natural environment.
4. Technological: Technological development of a marketers both opportunites and threat, although firms can offer customers a wider arraign of advanced products, changes in technology also mean that there may be more than one technical solution to a customer’s needs.
Increased technological development accelerates the speed of obsolences, marketers have to consider how their product may need to be developed over time if it is to remain competitive.
5. Culture: People opinions, taste are shaped by the society which they live, it should be noted that societies are not made up of homogeneous population, i.e people of same kind or nature, they contain sub-cultures which are believes, and values shared by smaller groups of people.
Such group may arise at a common race, religion, social activity or hobby, sub-cultures are important to marketers because they may have different consumption habit from the rest of the population.
6. Political and legal: Marketing are influenced by the regulating environment, this has implications for their obligations to customers and the wider public, customers are increasingly able to seek redress for faulty product.
The political environment around the world has recently favoured the privatization of public companies, such companies have also been able to compete more freely in the private sector.
Conclusion.
Marketing functions are carried out in a given environment which consists of Micro and Macro environment, the study and understanding of marketing environment is important based on fact the the environment is changing and there is uncertainty and can present opportunities and threads to the business organisations.
To succeed in the marketing today, firms needs to understand customers needs, develop and offer superior value at reasonable price and make the product available at a convenient place.
However Micro and Macro environments have significant impact on the success of marketing activities, therefore considering the factors of micro and macro environment for the creating a strategic marketing plan will approve the success of an organisation’s marketing and the reputation of it’s brand.
