The marketing environment is made up of factors that can influence the ability of a firm to provide services to its customers and to build relationships with the customers. A company should know its marketing environment so that it has an overview of its position in the market. The marketing environment of an organization is constituted by the following aspects.
Micro and Macro Environmental Factors
The marketing environment has two major types of factors – those which can be controlled by the company and those which can’t be controlled by the company. Those which can be controlled by a company are called the micro environment factors while those which cannot be controlled by the organization are called the macro environmental factors.
It is one of the micro-environmental factors. The competition can happen at various levels. It is an old practice to threaten the rivals to capture markets from organizations. It should be kept in mind that the competition is increasing by each passing day. Organizations should be aware of their competitor’s strategies and their secrets to success. In this way, the organization can strive to make more progress. Promotional campaigns among the general public can increase awareness of the brand which can give your organization a lead in the competition.
Structure of Organization
The Structure of organization is one of the internal factors. It can have a profound impact on the success. A better and efficient structure can ensure success and better performance.
Economic factors have strong effects on the organizations and their customers. Change in economic factors can lead to drastic damage to an organization. The economic factors include, the taxes, the foreign exchange rates, unemployment policy. The inflation rates and the interest rates are major issues. It is one of the major macro-environmental factors.
Political factor is basically the role of governing body in economy of the country. The legal laws, the political analysis of the stability of a country, economic policies, the trade regulations and tariff are included in the political factor. It is also a macro-environmental factor.
It is one of the major four macro-environmental factors. Social factors are important as the firm needs to know the needs of customer – the current needs as well as the future needs. The social factors that can affect the marketing environment are demographics of a particular area, the age distribution in the area, the lifestyle attitude, the major religion, the form of government.
Technological factors are also macro environment factors. The effect of advancement in technology can be negative as well as positive. The company has to design a strategy to face the negative factors or threats.
Hello everyone! This is Richard Daniels, a full-time passionate researcher & blogger. He holds a Ph.D. degree in Economics. He loves to write about economics, e-commerce, and business-related topics for students to assist them in their studies. That's the sole purpose of Business Study Notes.
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