Before we start with marketing environment it is important to know what a market is and how can marketing be defined as.
A market is any structure that allows buyers and sellers to exchange any type of goods, services and information. •
The market facilitates trade and enables the distribution and allocation of resources in a society. •
Markets allow any tradable item to be evaluated and priced. A market emerges more or less spontaneously or is constructed deliberately by human interaction in order to enable the exchange of rights of ownership of goods and services.
Marketing can basically be looked upon as the interaction between marketing mix variables and environmental variables. •
It is only with the help of marketing variables, that the market managers tackle the environmental variables. •
Marketing is an ongoing process of planning and executing the marketing mix for products, services or ideas to create exchange between individuals and organizations.
According to Kotler
“Marketing is a social and managerial process by which individuals and groups obtains what they need and want through creating, offering and exchanging products of value with others”.
The American Marketing Association defines marketing as:-
“The performance of business activities that direct the flow of goods and services from producers to consumers or users”. •
Marketing tends to be seen as a creative industry, which includes advertising, distribution and selling. •
It is also concerned with anticipating the customers' future needs and wants, which are often discovered through market research. •
Essentially, marketing is the process of creating or directing an organization to be successful in selling a product or service that people not only desire, but are willing to buy. In the words of Stanton
“ Marketing is a total system of interacting business activities designed to plan ,price, promote and distribute want satisfying products and services to present and potential customers”. Therefore good marketing must be able to create a "proposition" or set of benefits for the end customer that delivers value through products or services.
Marketing activities are influenced by several factors inside and outside a business firm. •
Its these factors which influence marketing decisions and are collectively called MARKET ENVIRONMENT. •
It is a marketing term and refers to all the forces outside marketing that affect the marketing management’s ability to build and maintain successful relationships with target customers. •
the market environment consists of both the macro environment and the micro environment. According to Kotler
“Marketing environment refers to external factors and forces that affect the companies ability to develop and maintain successful transactions and relationships with its target customers”.
FACTORS AFFECTING THE MARKET ENVIRONMENT
Marketing environment can be divided into 2 major parts.
Macro environment refers to those factors which are external in company’s activities and do not concern the immediate environment. •
Macro environment are uncontrollable factors which indirectly affect the concern’s ability to operate in the market effectively. FACTORS AFFECTING MACRO ENVIRONMENT
SOCIAL & CULTURAL FORCES
Marketing decisions cannot be taken without taking into account the developments in political and legal fields. Government agencies, political parties, pressure groups and laws create tremendous pressure and constraints for marketing management. •
Laws affect product design, pricing and promotion. Irrespective of the political ideologies, intervention in the marketing process has become common in every...
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