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Marketing BBS 2nd year ( chapter-2) Marketing environment.

Marketing Environment

Marketing environment refers to those factors, forces, which influence the exchange relationship of marketing with target costumers. Marketing environment can be classified into two category. One is 'Micro' and another is 'Macro'.

Define Micro environment of marketing and describes its factors.

Micro environment refers to all those internal forces of the organization which influence the marketing activities. The area of micro environment is within the territory of the organization itself, which consist of organizational activities, scope and stakeholder. It provides strength and weakness to marketing. Micro environment of marketing consist the following factors:
1) Organizational Activities:

a) Production: production is directly related with marketing which directly influence the marketing activities. Product need to be produced before they can be marketed. The expansion or reduction in the production directly affect the marketing activities.

b) Finance: The proper financial competitiveness is needed to accomplish all marketing activities. New product development, additional production facilities and promotional activities need finance. Thus this directly influence the marketing activities.

c) HRM :  Qualified and capable HR is needed to carry out marketing activities effectively.

d) Research and Development: research and development play .........
a significant role in marketing. It facilitates organization to match marketing mix to costumer needs.

2) Organizational Scope: It include the organization's objectives, organization structure, Organizational Resources, Organizational culture(value, norms etc.)

3) Stakeholder: the stakeholder are the foundation to the organization from which the organization taken place and organization's objectives are targeted. Micro environment is made up of stakeholder. They may be the outside organization or group who affect the activities of marketing and are affected by marketing. They have a stake in the performance of marketing. The stakeholder include Costumer, Suppliers, Competition etc.

4) Marketing Intermediaries:
i) Middleman ( wholesaler, retailer)
ii) facilitators: ( facilitate physical movement of product, Transporters, warehouse, clearing and forwarding agents)
iii) Market service Agencies: ( advertising agencies, credit information agencies, marketing research and consulting firms.) which helps in promoting products.
iv) financial institution
v) Labour Union
vi) Pressure group.

Macro Environment of Marketing
Define Macro environment with its forces .
Micro environment can be defined as the set of external condition and forces that influence the performance and outcomes of marketing. It provides opportunities and threat for marketing. It is out of the control of the organization. The following are the component/ forces of macro environment.
i) Political Forces: 
 The political environment consist all those factors of public affairs such as political system, political institution etc.
ii) Legal forces: 
It refers to rules of conduct enforced by the state. Legal environment of marketing refers to all the legal surrounding that affect marketing activities. It protects the right and interest of marketers, consumer, employees and the society. It consist of business law related with marketing activities , courts of law and law administration.
2) Economic forces: 
 Economic forces refers to economic surrounding that influence marketing .activities. They consist of economic parameters that provide the climate for survival and growth of marketing. They ultimately influence resource allocation, cost, profit, and consumer spending. It consist of:
i) Economic System: ( free market economy, Centrally planned economy, Mixed economy)
ii) Economic policies: ( Monetary policies, fiscal policies and industrial policies.)
iii) Economic condition: ( Business cycle, Income, Inflation, Natural resources, Globalization)
3) Socio- Cultural Forces:
Social forces refers to social surrounding that influence marketing. It consist of factor related to human relationship. There are many social factors that affect the marketing activities they are given below:
i) Demographics: (Concerned with human population and its distribution)—Population size, population growth, Age mix, Urbanization, Distribution and Migration.
ii) Social Institution: ( Family, reference group, Social class)
iii) Social changes and life style.
4) Cultural forces:
(Knowledge, customs, traditions, values, religion, language, symbols , works, art and architecture which is created by society.)
It include Attitudes, values and beliefs and types of product.
5) Technological Forces:
 technology refers to the means or method of converting resources into product. It consist of skill, methods , system and equipment. Technology influence marketing by bringing changes in jobs, skill, life style, product, production methods and processes. Hence technology directly influence the marketing activities.


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