The main factor is our knowledge on external environment of marketing which enables us a good marketer to foresee any possible occurrences from the external environment that can be influence our marketing objectives. This may help us to equate or formulate some effective strategies to help our business to overcome its threats into opportunities.
Marketing environment made up of two factors Micro Environment and Macro Environment
Surej P John , in his web content uploads explain us that , Micro Environments as the actors close to the company that affect its ability to serve its customers and those are the company, suppliers , marketing intermediaries , customer markets , competitors and publics. And he also says about macro environment as
…show more content…
Walmart , Carrefour and Best buy are some examples of retailers.
Physical distribution firms :- These are the intermediaries which help the company to stock and move the goods from Origination point to other destinations. Warehousing and transport agencies , shipping companies, etc are some examples for physical distribution intermediaries.
Marketing service agencies :- These are marketing research firms that helps the company target and promote its product to the right market. Media forms and advertisement agencies can be considered as some examples for marketing service agencies.
Financial Intermediaries. :- These includes banks , credit and finance companies , insurance companies , and other financial services that help in financial transactions or insure against the risks associated with the buying and selling of goods.
Customers
Five types of markets that purchase a company’s goods and services.
(a) Consumer : Consumer market consists of individuals and households that buy goods and services for personal
…show more content…
1. Demographic environment : These are the factors derives from the study of human populations in terms of size , density , location , age , gender , race , occupation and other statistics. This study explains how many percentage of total population speaks a particular language and share a common culture. These studies divides the age group in to 0-14 , 15-64 , 65 and above and categorize the percentage of males and females in this group. The study or research we do on these are considered to be demographic environment and which affect the macro environment as well.
2. Economic Factors : They represent the wider economy so may include economic growth rates, levels of employment and unemployment, costs of raw materials such as energy, petrol and steel, interest rates and monetary policies, exchange rates and inflation rates. These may also vary from one country to another.
3. Natural Environment : These are natural resources that are needed by marketers or that affected by marketing activities. The factors considered to be natural environment
External Environment and Competitive Position: Any business and its corresponding market position are affected by a change in the economy, government policies, community it serves, market segment, and the corresponding industry. These are external macro environment factors and the competitive nature has effect on the business. It is therefore necessary for any business to monitor the changes in the business segment and forecast the trend as part of its strategic planning.
Marketing In this day and age is vital for a company to perform at its possible best. Marketing’s main focus is to give great satisfaction to a customer. There are many aspect of marketing, these aspects give marketer’s the tools to help strive for the best possible success they can achieve. They hope that they can create exposure for their brand, product or service.
This research is based on the ways that the external environment can influence the operation of a business, and the aim of this research is how to protect a business operation from the influence of external forces. An external environment is composed of all the outside factors or influences that impact the operation of business. The business must act or react to keep up its flow of operations. The importance of the external environment analysis especially for managers is to fully understand the aspect of the business environment because it can affect and have an impact on their firm and how it operates. External environment plays a critical role in shaping the future of individual businesses as well as to keep the business ahead
The task environment directly impacts an organization. It is useful because managers recognize environmental factors of a specific interest concerning with the organization better than to deal with more abstract dimension of the general environment which tends to be vague, imprecise and long-term. Customers, suppliers, competitors, strategic partners and regulators compose task environment. For example, customer can influence an organization's environment as in the case of McDonald that in some menus have
Marketing is the main foundation in business and society. The ability to recognize the needs and desires of consumers and combine it with market conditions is a key activity for a company to be able to maintain the viability of the company to remain exist. Marketing is not like any other business function. In this case, marketing deals with customers. Although a detailed explanation on the marketing definitions will be further discussed, perhaps the simplest definition of marketing is: Marketing is managing profitable customer relationship. The twofold goal of marketing is to attract new
Cultural Factors: Culture is the set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions. Subcultures make up important market segments, which include nationalities, religions, racial groups and geographic regions. People in the same social class tend to exhibit similar buying behaviors. Social Factors: Reference groups, which marketers try to target, often influence people.
Generally, 5 main parameters influence the external environment of each businesses, especially retail market which is highly depended to . Political, Economic, Technological, Social and Legal are these main parameters (Sullivan and Adcock, 2002).
External factors are those that are beyond the control of management. There exist several external factors in a business environment. These are competition, fiscal policies, and macro-environment, and industry analysis factors amongst others. Macro environment and industrial analysis factors will be considered.
Identifying Firm’s Strength and Weakness: Business environment helps to identify the individual strengths and weaknesses in view of the technological and global developments.
The market environment analysis is an essential framework in understanding external local, national and international forces that affect your business (Hutt, Michael, Speh, 105). These factors are normally beyond your control, but you can modify your marketing strategies to benefit from the opportunities they present
Environmental factors cater for the protection of the environment. A business must carefully be able to look at its surroundings to see for benefits and ensure that its daily production does not interfere with society.
macro is the issues in business can represent any item or issue not directly controlled by the company, Availability of raw materials, government laws and regulations, number of eligible employees available to hire and the threat of competition can be just a few major forces that separate the micro and macro environment. Companies will often identify these factors and create policies that help them cope with the potential problems that may arise with each one. Studying the macro environment may also require the help of outside consultants more in tune with the changes of this environment.
1.Political: Political environment greatly affect the marketing and product decision, the government has enacted statutes to protect companies and the reduction of pollution and global warming and abundant more values of
The consumer market is made up of individuals who buy goods and services for their own personal use or use in their household.