Business Environment

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                                MZUMBE UNIVERSITY

                        BUS 5011 – MARKETING MANAGEMENT

                                      TERM PAPER

                            MBA 3:   2009/2010

  STUDENT NAME: GRACE J. TIBANYWANA 1473/T.09
      gtibanywana@yahoo.com

  PROBLEM: Discuss the internal and external factors of marketing environment and explain how they affect firm’s performance. Illustrate your discussion with local examples.
MARKETING ENVIRONMENT

This refers to a surrounding made up of all factors/forces that influence marketing activities in a firm. Also can be defined as forces that directly   and indirectly influences firm’s capability to undertake its business or trading forcers operating in a market place over which business has no direct control but which shapes the manner   in which business function and is able to satisfy its customers.

Components of Marketing Environment

      • External environment
      • Internal environment

Factors that affect each of the two environments are grouped as External environment factors and internal environment factors respectively. These factors may affect a firm in two ways either improves the performance (if well managed) or lowers the performance.

EXTERNAL ENVIRONMENT FACTORS

Reflects all factors/forces that are out of a particular firm; which have significant impact on the firm’s activities refers to marketing environment in totality. External factors can be categorized into two
    1. Micro/task environment factors
    2. Macro/societal environment factors

Micro/task environment factors

It comprises all forces/factors that can influence firm’s performance and are at some degree in the control of a firm but by no means complete control it.   Includes factors like suppliers, distributors, stockholders, and targeted customers

Micro/task environment forces describe the relationship between firms and driving forces that controls the... [continues]

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