Types of Marketing Environment

Types of Marketing Environment

The Marketing Environment is formed by the internal factors and external factors that surround an organization and affect its operations. All of these factors can’t be controlled by the business. Some of them can be controlled. The organization should have knowledge of its marketing environment so that it can plan a strategy to avoid the negative effects of the environment factors.

The marketing environment is made up of a micro environment and macro environment.

(a) Micro environment: 

The factors which are close to the organization’s business operations are called the micro-environmental factors. The micro-environmental factors form the micro environment. The factors can influence the operation of the business. The factors include the customers of the firm, the competitors, the suppliers of the services, the shareholders of the firm and many more. These can be sometimes controllable and may not be controllable some other time.

According to Philip Kotler and Gary Armstrong, "The micro environment consists of the factors close to the company that affect its ability to serve its customers."

Figure: Types of Micro Environment.

1. Company:In company marketer must discuss all the plans and policies with the top management, R&D, purchasing, manufacturing, selling and other departments to give satisfaction to the consumer.

2. Suppliers: Suppliers are the persons who provide the company necessary raw material. If the company is not having cordial relations with the supplier then it may result into short run loss in sale and damage the customer relations.

3. Marketing intermediaries: They help in promoting. selling and distributing the goods to the ultimate consumer. They include middleman like agents, dealers, whole-sellers, retailers, brokers; physical distribution firms which help the manufacturer in moving the goods from the factory to their destination.

4. Customers: As likes of customer changes very fast so for the growth of the company the marketer must keep studying the customer related factors and their demand regular basis.

5 Competitors: It is necessary for the marketing manager to have the knowledge about the competitors’ status, strength, weakness to take the competitive advantage.

6. Public: The Company must have good public relation department to maintain good relation the public.

(b) Macro Environment:

Macro environment consists the major external and uncontrollable factors that influence an organizations decision making, and affect its performance and strategies. These factors include the economic factors, political conditions, technological changes, and natural forces.

According to Philip Kotler and Gary Armstrong, " Macro environment consists of the larger societal forces that affect micro environment."

Figure: Types of Macro Environment.

1. Demographic environment: It includes the life style, income, qualification, age, marital status, sex, family structure etc. so the marketer must have the knowledge about it.

2. Economic environment: It means the purchasing power of the marketer must have the knowledge about the inflation, changing consumer pattern, real income, low saving etc.

3. Natural environment: The marketer must have the knowledge about natural resources, their shortage if any, government policies etc.

4. Technological environment: It is the technology which is changing the life of the people. So the marketer roust keep an eye on the changing technology.

5. Political environment: Political stability is very important for the growth of any economy it include the law, government agencies etc. marketing decisions arc affected by the political environment.

6. Cultural environment: It includes the values, beliefs, perceptions of the consumer which also affect the marketing environment. So the marketer must have the knowledge about it.