COMPONENTS OF MARKETING ENVIRONMENT
MARKETING ENVIRONMENT: All the marketing activities are panned and implement on all living persons, location, physical and financial location and so on things. Some total of all these functions and forces is known as the marketing environment.
According to Philip Kotler,”A company’s marketing environment consists of actors and forces outside marketing that affect management’s ability to build and maintain a successful relationship with target customers.”
The success of every marketing activity depends upon the extent of the implementing and developing of marketing strategies. If the environment is in the favor of marketing activities, it will lead the business to the breakthrough performance.
COMPONENTS OF MARKETING ENVIRONMENT: Marketing environment has the main two sets of the environment: Micro Environment and Macro EnvironmentBoth micro and macro environment do the marketing functions and very helpful for a effective business. The macro environment is broad the microenvironment.
MICRO-ENVIRONMENT: The micro-environment includes all factors and forces in the company that directly affects the performance of marketing activities micro forces do not need necessarily affect all the firms of the industry in the same way. Main forces are involved in the microenvironment:
Suppliers: These are those persons who give the input to an organization means raw materials and other resources for production is provided by the suppliers to an organization. Every business has to maintain the good relationships with their supplier if lack of suppliers in the market. If suppliers are more then needs in a market then a business not need to worry.
Buyers: It includes the customers and consumers of a company, who are the main forces behind the existence of the organization. Without the customer, an organization cannot run without the customer. Ever business or market has the first aim of satisfying their target customers. With some various changes and different patterns, a company satisfies their customers.
Market Intermediaries: These are various firms and the persons whose are responsible for distributing goods and services from the production to end user of consumptions. The main market intermediaries are:
Financial Institutions: A business can’t work without the funds. Money is known as the blood in every relationship. All firms who generate the funds for an organization is called the financial institutions. Banks, loan providers, credit companies, insurance companies and various stock exchanges etc provide the finance to an organization.
Marketing Service Agencies: These are the various services providers which include the various research firms, media agencies, various advertising firms. These agencies are helping to find the customer’s needs, manufacturing the right products, detecting the potential customers and target markets. These agencies are very helpful for every business or enterprise.
MACRO-ENVIRONMENT: All elements of micro-environment finally operate under the macro environment. An organization cannot change or modify these forces and an organization has to change itself with the changes of these all forces. These forces provide the opportunities and threats to the company these forces are:
Economic Environment: The economic environment includes various factors such as economic conditions, total employment, income, inflation and interest rates etc. the major function of marketing always revolve around demand and supply. It includes:
2.Consumers purchasing power
3. Interest rates
Demographic Environment: The demographic environment includes the study of human populations in terms of age structure, size, occupation, and other statistical information. But this environment totally differs from one country to another country. These forces are:
- Population size: Population size is the main determinant of demand for the product. More population do the more demand for products and services and less demand from the less population.
- Age: The needs, desires, and tastes are different for every individual.T he needs of babies are different from the adults and adult’s needs are different from old ages.
- Education: Education effects the knowledge.educated people are more aware of the market and uneducated people not aware.
- Gender: Every men and woman have the different need from each other. Thus this factor affects the marketing a lot.
Political and Legal Environment: It includes all rules and regulations, government factors and policies in the whole economy. It provides the framework to the all marketing management.
In India following laws are made for the businesses:
- Company law
- Minimum wages law
- environmental protection law
- Worker safety law
- Union laws
- Copyright and patent law etc.
Technological Environment: It is the new innovations and techniques for performing a particular task in an organization.
According to J.K Galbraith,”Technology is a systematic application of scientific or other organized knowledge to practical tasks.”
New technology is helpful to complete the new and all tasks and help to produce new products or services. It includes:
- Technology policy: It means govt. programs to promote innovation and technology.
- Technology Transfer: It is a process of sharing skills and innovations from one country to another.
Socio-cultural Environment: It is a very helpful environment for deciding about the marketing activities as the maximum effect of social-cultural environment on the personality, general behavior purchase decision of people. It also relates to the family, religion; marriage, and education etc. Society’s culture describes the rules and regulation. Culture tends to train people along particular lines which put a personality on them like Americans, Indians etc.
Competetive Environment: This macro environment refers to the competition among all companies and varying each other for capturing the same share market. That time has gone when only one or two countries are served for the society.No matter how big or small company is, every company has to face the competition.
For example, xiomi redmi give the competition to all companies with their best mobiles. They give the competition to the best and most selling phone’s companies like Samsung, Oppo etc.
Competetive Environment includes:
- The degree of competition
- The threat of new entrants
- Threat of substitutes
- Buyer power
- Suppliers power
Natural Environment: It includes the all living or non-living resources which are effects and also affected by the various marketing strategies and technology changes. Sometimes changes in environment like earthquakes, storms, and floods etc affect the profits and performance of the business and marketing activities affects the satisfaction level of customers.
Global Environment: It is a very complex term because it includes all issues in the world. In nowadays, companies have wider markets so have to wide scope. Customers also have a wide range of good products available at a competitive price. It is very complicated for companies to meet the all global customer challenges, to understand customers and desires at an international level.so it is a very tricky concept which includes handling all the world because it is impossible.