Machinery and equipment etc. Economic environment describes the overall economic situation in a country and helps in analysis GNP per capita rate of economic growth, inflation rate, unemployment problems etc. The physical environment or natural environment involves the natural resources that are needed as inputs by marketers or those that are affected by marketing activities.
Micro-environment[ edit ] Company aspect of micro-environment refers to the internal environment of the company. This includes all Departmentalization departments such as management, finance, research and development, purchasing, Business operations and accounting.
Each of these departments influences marketing decisions.
For example, research and development have input as to the features a product can perform and accounting approves the financial side of marketing plans and budget in customer dissatisfaction.
Marketing managers must watch supply availability and other trends dealing with suppliers to ensure that product will be delivered to customers in the time frame required in order to maintain a strong customer relationship.
These are the people that help the company promote, sell, and distribute its products to final buyers. They match the distribution to the customers and include places such as Wal-Mart, Target, and Best Buy.
Marketing services agencies are companies that offer services such as conducting marketing research, advertising, and consulting. Financial intermediaries are institutions such as banks, credit companies and Insurance companies.
There are different types of customer markets including consumer markets, business markets, government markets, Globalization international markets, and reseller markets. The consumer market is made up of individuals who buy goods and services for their own personal use or use in their household.
Business markets include those that buy goods and services for use in producing their own products to sell. This is different from the reseller market which includes businesses that purchase goods to resell as is for a profit.
These are the same companies mentioned as market intermediaries. The government market consists of government agencies that buy goods to produce public services or transfer goods to others who need them.
International markets include buyers in other countries and includes customers from the previous categories. To remain competitive a company must consider who their biggest competitors are while considering its own size and position in the industry.
The company should develop a strategic advantage over their competitors. Citizen-action publics include environmental groups and minority groups and can question the actions of a company and put them in the public spotlight.
Macro-environment[ edit ] The macro-environment refers to all forces that are part of the larger society and affect the micro-environment. It includes concepts such as demography, economy, natural forces, technology, politics, and culture.
The purpose of analyzing the macro marketing environment is to understand the environment better and to adapt to the social environment and change through the marketing effort of the enterprise to achieve the goal of the enterprise marketing. Demography refers to studying human populations in terms of size, density, location, age, gender, race, and occupation.
An example of demography is classifying groups of people according to the year they were born. These classifications can be referred to as baby boomerswho are born between andgeneration Xwho are born between andand generation Ywho are born between and Each classification has different characteristics and causes they find important.
This can be beneficial to a marketer as they can decide who their product would benefit most and tailor their marketing plan to attract that segment. Demography covers many aspects that are important to marketers including family dynamics, geographic shifts, workforce changes, and levels of diversity in any given area.
Another aspect of the macro-environment is the economic environment. This refers to the purchasing power of potential customers and the ways in which people spend their money. Within this area are two different economies, subsistence and industrialized. Subsistence economies are based more in agriculture and consume their own industrial output.
Industrial economies have markets that are diverse and carry many different types of goods. Each is important to the marketer because each has a highly different spending pattern as well as different distribution of wealth. The natural environment is another important factor of the macro-environment.
This includes the natural resources that a company uses as inputs that affects their marketing activities. The concern in this area is the increased pollution, shortages of raw materials and increased governmental intervention.The new marketing opportunities & challenges are effectively handled by the marketing management by developing & implementing new strategies after performing systematic environmental scanning.
Micro Environment and its Components. The business environment is a marketing term and refers to factors and forces that affect a firm's ability to build and maintain successful customer grupobittia.com three levels of the environment are: Micro (internal) environment – small forces within the company that affect its ability to serve its customers.
Environmental Scanning By James L. Morrison [Note: This text was originally printed as a chapter in A Primer for new Institutional Researchers and is reprinted here with permission from the Association for Institutional grupobittia.com bibliographical citation is: Morrison, J.
L. (). Environmental scanning. Jun 30, · Preparing a marketing environmental analysis is an essential step in understanding the external local, national or international forces that might affect your small business. Environmental Scanning By James L. Morrison [Note: This text was originally printed as a chapter in A Primer for new Institutional Researchers and is reprinted here with permission from the Association for Institutional grupobittia.com bibliographical citation is: Morrison, J.
L. (). Environmental scanning.
By conducting systematic environmental scanning, marketers are able to revise and adapt marketing strategies to meet new challenges and opportunities in the market place.
Marketing as a function is basically all about matching the offerings of the organisation to the .