Marketing Environment

Topics: Marketing, Marketing management, Environment Pages: 12 (4121 words) Published: February 10, 2011
The first rule of business – Find out what the man you are dealing with wants and give it to him {Warren Tate}
Businesses do not operate in a vacuum, but in a complex and changinging environment. Companies today have to be alert and responsive to the interests and concerns of the various actors and forces in the marketing environment. Some of these actors and forces may work with of against the company. Major environmental forces shape marketing opportunities, present threats and influence the company’s ability to serve target customers and secure lasting relationship with them. To understand marketing, develop and implement effective marketing strategies, marketers must understand the environmental context in which marketing operates. Today’s marketers must be skillful in managing relationships with their customers and external partners. To do this effectively, marketers must understand the major environmental factors that surround all these relationships. A company’s marketing environment consists of the actors and forces outside marketing that affect the marketing ability to develop and maintain successful relationships with its target customers. The marketing environment offers both opportunities and threats. Successful companies know the importance of constantly watching and adapting to changing environment. Too many company’s, unfortunately fail to think of change as an opportunity. They ignore or resist critical changes until its too late .The environment continues to change at a very rapid pace and therefore marketers must be trend trackers and opportunity seekers. By carefully and systematically studying the environment, marketers can devise and adapt marketing strategies to meet new Market place challenges and opportunities.

The Marketing environment
A company’s marketing environment consists of a macro environment and a micro environment. Micro environment consists of the actors close to the company that affect the ability to serve its customers. The company has control over the actors in the micro environment. The macro environment is made up of the forces in the larger environment that the company does not have control over.

The micro environment
Marketing manager’s job is to build relationships with the customers by creating customer value and satisfaction. Marketing managers cannot do this alone. Their success will require building relationships with the actors in the macro environment ie the other company departments, suppliers, marketing intermediaries, customers, competitors and the various publics. i.Company depts. – Top management, finance, research and development, procurement, Human resource, Administration etc. All these departments must work together to provide superior customer value and satisfaction. ii.Suppliers – An important link in the company’s value overall customer value delivery system. They supply the resources needed by the company to produce goods. Supplier problems can affect marketing ie availability, quality, promptness in delivery, prices, labor strikes etc. iii.Marketing intermediaries – Firms that help the company to promote , sell and distribute its goods to the final buyers. They include – physical distribution firms( warehouses and transportation firms ), marketing service agencies ( research firms, advertising agencies, and marketing consulting firms) and financial intermediaries (banks, insurance companies, investment firms).Today’s marketers recognize the importance of working with intermediaries as partners rather than simply channels. iv.Customers – companies need to study their markets in order to be able to deliver real value and satisfaction. Each type of market (consumer, business, reseller, govts and international) has special characteristics that call for careful study by the company. v.Competitors – Marketing concept states that to be successful, a company must provide greater value and satisfaction than...
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