![]() The economic environment constitutes factors that influence customers’ purchasing power and spending patterns. It is characterised as the factual investigation and segregation of the population according to their size, density, location, age, gender, race, and occupation. The demographic environment is made up of the people who constitute the market. The macro-environment can be divided into six parts. It constitutes the external factors and forces which affect the industry as a whole but don’t have a direct effect on the business. The macro component of the marketing environment is also known as the broad environment. The public comprises any other group with an actual or potential interest or affects the company’s ability to serve its customers.Competitors are the players in the same market who targets similar customers as the organisation.Customers comprise the target group of the organisation.Partners are all the separate entities like advertising agencies, market research organisations, banking and insurance companies, transportation companies, brokers, etc., which conduct business with the organisation.Market intermediaries include parties involved in distributing the product or service of the organisation.Suppliers include all the parties which provide resources needed by the organisation.These include suppliers, market intermediaries, customers, partners, competitors and the public. It comprises external forces and factors that are directly related to the business. The micro-component of the external environment is also known as the task environment. The external environment is of two types: ![]() The external environment constitutes factors and forces which are external to the business and over which the marketer has little or no control. ![]() This environment includes the sales department, the marketing department, the manufacturing unit, the human resource department, etc. ![]() Nevertheless, the internal marketing environment is as important for the business as the external marketing environment. The internal environment is under the control of the marketer and can be changed with the changing external environment. Money: Money is the financial resource used to purchase machinery, materials, and pay the employees.Materials: The factors of production or supplies required by the business to complete the processes or production.Machinery: Equipment required by the business to facilitate or complete the processes.Minutes: Time taken for the processes of the business to complete.Men: The people of the organisation, including both skilled and unskilled workers.These components can be grouped under the Five Ms of the business, which are: The internal environment of the business includes all the forces and factors inside the organisation which affect its marketing operations. “A company’s marketing environment consists of the actors and forces outside of marketing that affect marketing management ability to build and maintain successful relationships with target customers”. It is made up of six components: demographic, economic, physical, technological, political-legal, and social-cultural environment. The macro or the broad environment includes larger societal forces which affect society as a whole.It consists of factors engaged in producing, distributing, and promoting the offering. The micro or task environment is also specific to the business but is external.The external environment is further divided into two components: micro & macro.The internal environment is company-specific and includes owners, workers, machines, materials etc.The marketing environment of a business consists of an internal and an external environment. The marketing environment is the combination of external and internal factors and forces that affect the company’s ability to establish a relationship and serve its customers. 4.1 Related Posts: What Is Marketing Environment?
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