Factors Affecting Marketing
WHAT ARE THE MICRO AND MACRO ENVIRONMENT AFFECTING MARKETING
INTRODUCTION
A Business principally is the organized effort by individuals in an organization to produce goods and services and to sell these goods and services in a market place to earn a good profit margin. The operating environment for all organizations whether they are commercial, charitable, governmental, or in the public sector more generally, is never static and seldom entirely predictable, and can therefore profoundly affect a company’s course of action. An organization can influence the various environmental forces acting on it.
COMPONENTS OF THE MARKETING ENVIRONMENT
The Internal Environment concerns the resources, processes and policies an organization manages in order to achieve its goals. These elements can be influenced directly by an organization. The External Environment consists of the Micro Environment and the Macro Environment. The Macro Environment consists of the political, social, economical, legal and technological influences, and organizations usually have very limited influence on each of these. The Micro Environment consists of competitors, suppliers and indirect service providers, who shape the way an organization achieves its objectives. In this environment, organizations have a much stronger level of influence.
MICRO ENVIRONMENT
Micro environment consists of those organizations that either directly or indirectly influence an organization’s operational performance. There are three main types:
1. Those companies that compete against the organisation in the pursuit of its objectives.
2. Those companies that supply raw materials, goods and services and those that add value as distributors, dealers, and retailers in the marketing channel.
3. Those companies that have the potential to indirectly influence the performance
INTRODUCTION
A Business principally is the organized effort by individuals in an organization to produce goods and services and to sell these goods and services in a market place to earn a good profit margin. The operating environment for all organizations whether they are commercial, charitable, governmental, or in the public sector more generally, is never static and seldom entirely predictable, and can therefore profoundly affect a company’s course of action. An organization can influence the various environmental forces acting on it.
COMPONENTS OF THE MARKETING ENVIRONMENT
The Internal Environment concerns the resources, processes and policies an organization manages in order to achieve its goals. These elements can be influenced directly by an organization. The External Environment consists of the Micro Environment and the Macro Environment. The Macro Environment consists of the political, social, economical, legal and technological influences, and organizations usually have very limited influence on each of these. The Micro Environment consists of competitors, suppliers and indirect service providers, who shape the way an organization achieves its objectives. In this environment, organizations have a much stronger level of influence.
MICRO ENVIRONMENT
Micro environment consists of those organizations that either directly or indirectly influence an organization’s operational performance. There are three main types:
1. Those companies that compete against the organisation in the pursuit of its objectives.
2. Those companies that supply raw materials, goods and services and those that add value as distributors, dealers, and retailers in the marketing channel.
3. Those companies that have the potential to indirectly influence the performance