Topic 2 - The Marketing Environment.
As an independent marketing management consultant, you have been asked by the marketing director of a leading local white goods company to prepare a report discussing the main components of the micro and the macro marketing environments impacting the organisation. You are also to outline why the organisation should be knowledgeable about environmental developments.
G.F Abela Junior College
Table Of Contents
4.0 Proximate Macro-Environment
5.0 Wider Macro-Environment
The market environment is a marketing term and refers to factors and forces that affect a firm’s ability to build and maintain successful relationships with customers. Three levels of the environment are: Micro (internal) environment - small forces within the company that affect its ability to serve its customers and the macro environment which is divided in two terms. The Proximate macro environment and Macro environment (external). The micro environment refers to the forces that are close to the company and affect its ability to serve its customers. The company’s 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. Each of these departments has an impact on marketing decisions. Marketing intermediaries refers to resellers, physical distribution firms, marketing services agencies, and financial intermediaries. These are the people that help the company promote, sell, and distribute its products to final buyers. Resellers are those that hold and sell the company’s product. The macro environment refers to all forces that are part of the larger society and affect the microenvironment. It includes concepts such as demography, economy, technology, and politics.
In order to correctly identify opportunities and monitor threats, the company must begin with a full understanding of the marketing environment in which the firm operates. The marketing environment consists of all the actors and factors outside marketing that affect the marketing management’s ability to develop and maintain successful relationships with its target customers. Though these factors and forces may vary depending on the specific company and industrial group, they can commonly be divided into micro environmental and macro environmental components. For most companies, the micro environmental components are: the company, suppliers, customer markets, competitors, and publics which combine to make up the company’s value delivery system. The macro environmental components are thought to be: demographic, economic, natural, technological, political, and cultural forces. The marketing environment has an impact on every type of business in the industry which includes white goods. A major appliance or domestic appliance is usually defined as a large machine which accomplishes some routine housekeeping task, which includes purposes such as cooking, washing or cleaning, whether in a household, institutional, commercial or industrial setting. Heavy consumer durables such as air conditioners, refrigerators, stoves which used to be painted only in white coating finish but now despite their availability in varied colours , they are still called white goods.
3.0 The Micro Environment
The objective of marketing philosophy is to make profits through satisfying customers. The micro environment refers to the forces that are close to the company and affect its ability to serve its customers. A company must follow an organizational culture which is the collective behaviour of humans who are part of an organization and the meanings that the people attach to their actions. Culture includes...
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