MARKETING ENVIRONMENT

 Meaning of marketing environment:

The marketing activities of a business are influenced by many internal and external factors; While some factors are in control of the business, most are not; And, the business has to adapt itself to avoid being affected by changes in these factors; These external and internal causal groups create a marketing environment in which the business operates.

Every organization needs to think critically about the environments in which it operates. It has two parts - Internal & External Environment.The internal environment is company specific and includes owners, workers, machines, materials, etc.

It divided into two categories: Micro and Macro; Micro or work environment is also specific to business but external; This includes factors engaged in the production, distribution, and promotion. Macro  environments include large social forces that affect society as a whole.The macro environment is composed of six components: demographic, economic, physical, technological, political-legal and socio-cultural environments.

Factor's of Marketing Environment

Marketing activities are influenced by many factors inside and outside a business firm; These factors or forces that influence marketing decision making are collectively called marketing environments; This includes all forces that have an impact on the market and marketing efforts of the enterprise.

Internal factors - In marketing environment (employees, customers, shareholders, retailers and distributors, etc.) And, external factors (political, legal, social, technical, economic) are involved that surround the business and influence marketing operations.Firms should be well aware of their marketing environment in which this environmental factor is acting to remove the negative effects the firm is imposing on the marketing activities of the firm.

Classification of marketing environment:

Marketing environments can be broadly classified into three parts;

Internal environment:

The internal marketing environment includes all factors that are within the organization and affect overall business operations; These factors include labor, inventory, company policy, logistics, budget, capital assets, etc. which are a part of the organization; And, influence marketing decisions and its relationship with customers; These factors can be controlled by the firm.

External or Micro Environment:

It includes all factors that are closely related to the operation of the business and affect its functioning; Microenvironmental factors include customers, employees, suppliers, retailers and distributors, shareholders, competitors, government and the general public; These factors are somewhat controllable.

Macro Environment:

It includes all factors that exist outside the organization and cannot be controlled; These factors mainly include social, economic, technological forces, political and legal influences. 

Importance of environmental analysis:

Environmental analysis has the following benefits:

It helps in marketing analysis.

It can assess the impact of opportunities and threats on business.

They facilitate the company to raise general awareness about environmental change.

It is possible to develop effective marketing strategies based on analysis.

It helps to capitalize on opportunities rather than losing to competitors.

They facilitate understanding of environmental elements.

It helps develop the best strategies, in light of the analysis of "what's happening around the company"