Marketing Environment

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MARKETING ENVIRONMENT

Introduction

Marketing does not occur in a vacuum. The marketing environment consists of external forces that directly and/or indirectly impact the organization. Changes in the environment create opportunities and threats for the organizations.

Definition:
▪ A company’s marketing environment consists of the actors and forces outside marketing that affect the marketing management’s ability to develop and maintain successful relationship with its target markets. ▪ The marketing environment offers both opportunities and threats and therefore it is important for marketers to take the responsibility of identifying significant changes in the environment. ▪ Marketing managers must be trend trackers and opportunity seekers. This, they must they must do by ensuring a lot of market intelligence and market research. They also must spend more time in the customer and the competitor environment. ▪ By conducting systematic environmental scanning, marketers are able to revise and adopt marketing strategies to meet the new challenges and opportunities in the market place. ▪ The marketing environment is made up of a macro environment and a microenvironment.

MICROENVIRONMENT

▪ Consist of the forces close to the company that affects its ability to serve its customers. ▪ They include the company, the suppliers, marketing channel firms, customer markets, competitors and publics.

MACRO ENVIRONMENT

▪ Macro environment on the other hand consists of the larger societal forces that affect the whole microenvironment. ▪ They include Demographic developments, economic forces, Natural, technological, political and cultural forces

THE COMPANY’S MICROENVIRONMENT

▪ Consists of all processes, functional relationships, departments and structures within the company, all of which affects the way it attracts and builds relationships with its clients. ▪ Marketers’ success depends on other actors in the company’s microenvironment: other departments, suppliers, marketing intermediaries, customers, competitors and various publics.

THE COMPANY

▪ In designing marketing plans, the marketers must take cognizance of other company groups such as top management, finance, research and Development, Purchasing, Manufacturing and Accounting. ▪ All these interrelated groups form the internal environment. ▪ Under the marketing concept, all of these functions must “think consumer” and should work in harmony to provide customer value and satisfaction.

SUPPLIERS:

▪ Are important link to the company’s overall value delivery system. ▪ Provide resources needed by the company to produce its goods and services and can seriously affect marketing. ▪ Marketers much watch their availability, supply shortages and delays, labour strikes and other events that can cost sales in the short run and damage customer satisfaction in the long run. ▪ Marketing managers must also monitor the price trends of their key inputs as rising supply cost may force price increases that can harm company sales volume.

MARKETING INTERMEDIARIES:

▪ Helps the company to promote, sell and distribute its goods to the final buyers. ▪ They include:
a) Resellers:
▪ They are Distribution channels that help the company to find customers or make sales to them. ▪ They include wholesalers and retailers who buy and resell merchandise. These organizations frequently have enough power to dictate terms or even shut the large manufacturer out of large markets. b) Physical distribution firms:

▪ They help the company to stock and move goods from their points of origin to their destinations. ▪ They include warehouse and transportation companies. ▪ A company must determine the best way to store and ship goods based on cost, speed, delivery and safety.

c) Marketing services agencies:
▪ These include marketing Research firms, Advertising...
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