“The marketing environment comprises a microenvironment and a macroenvironment. What happens in these environments is largely uncontrollable by firms but can have a significant impact on organisational performance” (Jobber and Fahy, 2009: 48). Discuss.
If a firm wants to be marketing-orientated, they need to look at the environment they operate in and take advantage of emerging opportunities and minimize threats. The Marketing Environment consists of the Macroenvironment and the Microenvironment; both of which affect a company’s ability to operate efficiently in providing products to its market. The Macroenvironment is the broad forces that affect the firm, their competitors, and other elements in the Microenvironment. It is more difficult to influence or change than the Microenvironment as it is to do with the nature and character of customer demand, which will continue to change over time. They are grouped into Political/Legal, Economic, Technological, and Social/Cultural,
Political/Legal forces can influence marketing decisions because they are large scale rules that businesses must follow making them uncontrollable. For examples, across the EU the laws on advertising can vary because each member state has their own legislation. What’s acceptable in one country can be banned in another, like, toys cannot be advertised on Greek TV and adverts containing alcohol are banned in France and its stadiums. This means that companies wanting to create a brand image across Europe often have to make changes for certain countries to get past these laws. Some companies even try to cultivate a close relationship with politicians in countries to monitor political moods, but also to try and influence them give themselves a better market share. The EU as a whole also has legislation; mainly to keep businesses competitive by removing restrictive practises and disallowing collusion and mergers. This affects organisational performance as it limits how much a firm can sell,...
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