Meaning and Scope of Marketing Environment, Micro Environment Variables

Marketing Environment

Every manager in a company pays attention to both the internal and external environments. A micro environment and a macro environment both make up the marketing environment. A micro environment is made up of factors that are near to the organization and have an impact on how well it serves its consumers. The main elements of the microenvironment include the firm, suppliers, marketing intermediates, customer marketplaces, competitors, and publics. These players, often known as controllable factors, are ones that a firm may have direct control upon. A corporation cannot influence the macroenvironment, which is made up of bigger societal elements like demographic, economic, natural, technological, political, and cultural forces that have an impact on the microenvironment. Therefore, these elements are also known as uncontrolled elements.

Scope of Marketing Environment

The following list of several types of marketing environments is provided:

• Customers: Customers are one of the key components of marketing, and the market would not exist without them. They are the final decision-makers who purchase goods and services, and the environment will have an impact on how they behave.
• Marketing Organizations: Marketing organizations are the businesses that carry out marketing. The environment has an impact on these companies' operations.
• Internal and external elements: The marketing environment includes elements of organizations that are both internal and external. Companies, intermediaries, clients, rivals, people, etc. are all considered internal components, whereas population, the economy, the environment, socio-cultural norms, etc. are considered external elements.
• Marketing mix element: The essential marketing components that are part of the marketing mix are product, price, place, and promotion. Examples of product mix include product types, design, quality, branding, and packaging. The main components of price mix are the discount, the terms and conditions of the sale, and the method of payment. Agents, wholesalers, retailers, warehousing, and transportation are all included in the place mix. Sales promotion, personal selling, publicity, and advertising make up the promotion mix. The marketing environment is impacted by each of these factors.

The Company’s Microenvironment

Microenvironment refers to external factors that are near to the organization and have an impact on how well employees treat customers. The main elements of the microenvironment include the firm, suppliers, marketing intermediaries, customers, markets, competitors, and publics. The goal of marketing management is to engage with consumers and increase satisfaction. The key elements that influence a micro environment are discussed below:

The Company: Marketing management considers a company's top management, finances, R&D, purchasing operations, and accounting while creating the marketing strategy. Each of these groupings is connected to the internal environment. Setting the organization's mission, objectives, broad strategy, and policies is the responsibility of top management. Marketing managers make decisions in accordance with the goals and plans set by upper management.

Suppliers: Suppliers are the vital link in a business' marketing chain that enhances the effectiveness of the delivery system. They offer the items and services the business needs in terms of resources. The issue with the suppliers has a significant impact on marketing. Its marketing manager's responsibility is to keep an eye on supply costs and availability. Supply delays or shortages, labor disputes, and other occurrences can reduce satisfaction over the long term and hurt sales in the short term. Price rises brought on by the growth in supply costs could hurt the company's sales volume.

Marketing Intermediaries: Marketing intermediaries assist the business in marketing, selling, and distributing the finished goods. Marketing intermediaries include resellers, physical distribution companies, marketing services companies, and financial intermediaries. Retailers and wholesalers who purchase the product and resell it are among them. As a result, marketers have understood the value of working with their intermediaries as partners rather than just as sales conduits for their goods. For instance, when Coca-Cola agrees to supply beverages to a business like McDonald's or Subway, it not only offers soft drinks but also strong marketing support.

Competitors: According to the marketing theory, a business must exceed its rivals in terms of customer satisfaction in order to succeed. Without offering greater client values and satisfaction than the rivals, it will be difficult for any business to survive in the modern era. Therefore, marketing efforts need to go beyond simple consumer adaptation. They must be able to position their products by making a strong offer in comparison to the rivals. There isn't just one marketing technique that will work best for the business. Each company should take into account how its size and industry position stack up against those of its rivals. Certain strategies, which small businesses cannot afford, can be used by large organizations with dominant strategy. Additionally, it is true that size alone won't guarantee an organization's long-term success. Small businesses have access to tactics that allow for a better return on investment than huge corporations.

Publics:

Any group that actually cares about or influences how well an organization is able to accomplish its aims and objectives. There are seven different categories of public:

• Financial publics: This group has an impact on the company's capacity to raise money. Major financial publics include banks, investment firms, and stockholders.
• Media publics: This organization publishes news, features, and editorial commentary. It includes publications including newspapers, periodicals, radio, and television stations.
• Citizen- actions publics: A company's marketing choices may come under scrutiny from a variety of groups, including consumer advocacy groups, environmentalists, minority groups, and others.
• Local publics: Local publics include neighborhood residents and community organizations. A large firm will appoint a community relations officer to interact with the public, go to events, respond to inquiries, and support deserving charities.
• General Public: A business must be concerned with how the general public perceives its goods and operations. The company's purchasing is influenced by its public image.
• Internal public: Internal publics include employees, managers, volunteers, and the board of directors. The large corporation employs newsletters and other tools to educate and inspire its staff. Employee satisfaction with the company where they work will eventually transfer to the general public.

Customers: Customers are, as we all know, the key players in a company's marketing environment. The overall system's goal is to provide for the needs of its target audience and forge close bonds with them. The company focuses on a variety of customer markets, including domestic, foreign, and business as well as consumer and business markets.

Reference

Kotler, P., & Armstrong, G. (2013). Principles of Marketing. Chennai: Pearson India Education Services Pvt Ltd.