Everything You Should Know About Marketing Environment: Explanation, Definition, Types, Importance
What is Marketing Environment?
Marketing environment is the combination of both internal and external conditions which impacts the working of any business organization’s marketing initiative.
Both the internal and external can have direct or indirect impact on the Marketing activity of a business. Understanding and analyzing the marketing environment properly can help the marketers and the business organization to be prepared for any threats or opportunities that can impact the organization, and accordingly they plan and make strategies to overcome the negative impact and welcome the positive effect.
Types of Marketing Environment:
The marketing environment again can be classified into 2types:
- Micro Environment.
- Macro Environment.
Every possible reason which has an immediate impact on the working of the business organization. Again, Micro-environment can be sub-divided into few parts, they are :
1. Customers have always been considered superior. The primary motive of any business should be to satisfy the customers. Without achieving customer satisfaction, the flourishing of a business can be difficult. The organization has to have a proper and clear analysis of customers’ expectations and wants regarding the products and services and it should be fulfilled by the organization. More than creating customers, the organization should focus on retaining customers.
2. Suppliers also play a vital role in the proper working of the business. Suppliers provide the organization with all the inputs like resources, raw materials and etc. If there is any change or uncertainty about the supply then it can create pressure on the business, and thus the business would be impacted.
3. Intermediaries include wholesalers, distributors, agents, dealers and etc. They help in bridging a gap between the customers and the business organization.
4. Shareholders have the authenticity to vote in the company’s meeting. They are almost the owners of the business. They invest in the business organization by buying shares and thus it gives them the right to have a say in the business.
5. Competitors help the organization to thrive for success. It plays an important role as a rival so that in the long run the business organization can surpass its rival company and win the race. For this, it is very important for the organization to keep a close look at how their rival firm is working. How their actions would affect the working if the organization both in the present and future.
- Proper skilled and qualified Employees can help the organization to work better. For this proper training and also following the concept of division of labour shall be followed, as this augments the quality of work done.
6. Media has always been an important factor as it can be helpful for both positively and negatively impacting the business organization. Be it of any form, managing and controlling the media is a vital factor for the organization.
These are the factors that form Micro-environment for any business organization. They can impact the working of the firm both positively, if utilized properly, and negatively if there is any discrepancy.
Also Read: Marketing Mix: 4Ps and 7Ps Of Marketing Mix
Macro, itself means that a wider concept is being considered. It aids in making the proper decisions and to make plans and strategies to achieve their targeted goal in the provided market condition.
Macro environment can be further subdivided into:
1. A clear understanding of Demography(which includes age, gender, population density and etc.) Of a given a region can help the marketers to understand their targeted customers and serve them effectively.
2. Economy also plays an important role here. If it is a socialistic, capitalistic, or mixed economy, it impacts the working of the organization. How much role the government plays is another factor here.
3. Socio Culture: This factor determines which industry can sustain in a given region. This factor determines their demand and wants for their goods and services. The business organization should understand and without hurting any sentiments they should work with serving the customers.
4. Ecology includes the location, biodiversity, temperature, weather of where the business will start. Understanding these features, the organization will know how and what to sell there.
5. The choice of Technology by the organization will depend on the type of technology customers are willing adopt easily.
6. Political Scenario also impacts the working of the business organization. How much support the business will get will also impact the working of the business. The policies and laws of the region also impact the business working.
Importance Of Marketing Environment:
Importance Of Marketing Environment are mentioned below:
- Any change in the mode of production will have an impact on the working of the business organization. If the marketers have proper knowledge of the marketing environment and how likely this change in technology would be affecting the organization then accordingly steps can be taken.
The continuous study, analysis, and having a transparent knowledge of the market environment would be helpful in making the proper decisions and changes in their way of working.
Following the trend by analyzing the market environment can help to understand the behavior of the customer. According to this, the organization can produce products. Understanding the requirement of the customer is very important for any business organization to function. Thus, a marketing environment helps in providing better customer service according to their needs and requirement.
Thus, this can be understood that the Marketing Environment is an important factor for the business to work. It has its important and also this can be a factor that the business should put more focus on.
- Human Resource Planning: Explanation, Process, Importance - October 28, 2020
- Steps To Create Marketing Plan [Complete Guide] - October 28, 2020
- Brand Essence: Explanation, Importance, Examples - October 28, 2020