What is marketing environment?
Marketing Environment implies everything that directly or indirectly affect marketing operations. The marketing environment is dynamic, means it changes from time to time and has great impact to the marketing operations and decision making. Marketing environment involves controlled and uncontrolled factors that might be threat or opportunity (favourable or unfavourable) to organization marketing strategies.
Features of marketing environment
- Uncertain
- Complex
- Dynamic
- Relative
Types of marketing environment
Marketing environment is categorized into two types which are;
- Internal marketing environment
- External marketing environment
1. Internal marketing environment
These are factors that take place within an organization and they can directly impact organization marketing operations. Internal marketing environment includes, objectives of the company, organization culture, organization image, policies, vision and mission.
- Objectives of the company; These are the goals that the company has set and they expect to achieve within a certain period of time. Marketing strategies should focus on achieving the goals and objectives that a company has set.
- Organization Culture; It implies believes, values and practice that influence the behaviour of the employees in an organization. Every company has it's own culture. How employees are well managed can impacts the marketing operations.
- Organization image; This is how people perceive a company. Good image builds trust to the customers and outside world. Thus, the marketing strategies should rely on maintain the reputation of the company so as to build trust to the outside world.
- Policies; These are principles or rules that guide the employees or organization members. The success of the marketing strategies depend on effectiveness of these policies. Therefore, a company should design effective policies that will help them to achieve goals.
- Vision and mission; Vision defines what an organization desire to achieve while mission define what an organization is doing and its objectives. Marketing operations depend on effectiveness of vision and mission of the company.
2. External marketing environment
These are factors that take place outside the organization. They can be controllable or uncontrollable.
External marketing environment is divided into two types which are;
i. Micro environment
ii. Macro environment
i. Micro environment
These are factors that directly affect the marketing operations and performance. These factors can be controlled.
Micro environment factors include; customers, competitors, suppliers, intermediaries and publics.
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Customers; Are the ones who buy products or services. Customers have their own preferences, behaviours and needs. The company should know better their customers so as to make products that fulfill customer's needs.
Competitors; Are those who the company is in competition with. A company should study and understand their competitors well so as to design best strategies that will help them to win the market competition.
Suppliers; are the ones who sell and supply raw materials. The production process depends much on availability of raw materials. Thus, the company should seek the best suppliers who will supply them adequate raw materials.
Intermediaries; These are firms that act as middlemen, they include wholesalers and retailers. Their function is to assist flow of goods from producers to final users. A company should build good relationship with these middlemen because they are close connected to customers thus they may have some suggestions about customer's needs.
Publics; According to Bartleby.com, are groups of people who has interest and impact on the ability of the organization to achieve the company's growth and goal.
ii. Macro environment
These are factors that indirectly affect the marketing operations.
Macro environment factors include;
- Political factors; like, political instability and change in leadership.
- Economic factors; like, Inflations.
- Social factors; like, age, population and gender.
- Technological factors; like, invention of new machines.
- Legal and regulatory factors; like, price regulations, government laws, trade regulation and tax law.
- Environmental o physical factors; like, climate change and infrastructure.
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