The market environment is a marketing term and refers to all of the forces outside of marketing that affect marketing management’s ability to build and maintain successful relationships with target customers. The market environment consists of both the macro environment and the microenvironment. The microenvironment refers to the forces that are close to the company and affect its ability to serve its customers. It includes the company itself, its suppliers, marketing intermediaries, customer markets, competitors, and publics. The macroenvironment refers to all forces that are part of the larger society and affect the microenvironment. It includes concepts such as demography, economy, natural forces, technology, politics, and culture.
The company aspect of microenvironment refers to the internal environment of the company. This includes all departments, such as management, finance, research and development, purchasing, operations and accounting. In India the new developing small firms also have separate departments for each of their activities so as to facilitate easy business transactions. Each of these departments has an impact on marketing decisions. For example, research and development have input as to the features a product can perform and accounting approves the financial side of marketing plans and budgets. The suppliers of a company are also an important aspect of the microenvironment because even the slightest delay in receiving supplies can result in customer dissatisfaction. Marketing managers must watch supply availability and other trends dealing with suppliers to ensure that product will be delivered to customers in the time frame required in order to maintain a strong customer relationship. India had been a country that imported many of its consumer goods, but now global companies have settlements in India and provide domestic supplies. Also the indigenous suppliers are also gaining reputation in global economy. Another aspect of microenvironment is the customers. There are different types of customer markets including consumer markets, business markets, government markets, international markets, and reseller markets. The consumer market is made up of individuals who buy goods and services for their own personal use or use in their household. The consumer market of India is very strong as one billion people reside in the country. Business markets include those that buy goods and services for use in producing their own products to sell. As the current economic structure promotes new firms and business establishments, the business market is also expanding. Business market is different from the reseller market which includes businesses that purchase goods to resell as is for a profit. These are the same companies mentioned as market intermediaries. The government market consists of government agencies that buy goods to produce public services or transfer goods to others who need them. For promoting growth of the economy many government agencies are working in public sectors. International markets include buyers in other countries and includes customers from the previous categories. With globalization, the wide scope of International market is now open in front of India and the new reforms and regulations from the Govt. promote such trades. Competitors are also a factor in the microenvironment and include companies with similar offerings for goods and services. To remain competitive a company must consider who their biggest competitors are while considering its own size and position in the industry. The company should develop a strategic advantage over their competitors. The number of competitors in Indian market is high compared to previous years and companies are having strict competitions against each other. The final aspect of the microenvironment is...