As defined by business jargons, marketing environment refers to the internal and external factors that surround the business and influence its marketing operations. Some of these are controllable while some are not. The firm should be aware about its marketing environment to gain competitive advantage and minimize the negative impact on business due to change in environmental factors.
The marketing environment in Nepal consists of economic, political-legal, socio-economic and technological factors that directly or indirectly affects the business activities. Political parties, administrative policy, legal provision, constitution, economic condition, trade and transit policy, industrial policy, privatization policy, income distribution, economic policy, population, pressure group, reference group, social class, lifestyle, attitude, beliefs, religion, education, language, level of technology, research and development and technology transfer together form the business environment of Nepal (Project Management). Strong economic system, favorable economic policies, political stability and healthy competition provide opportunities to marketing but elements such as increase in instability, unhealthy competition, political instability, frequently changing economic policy and development in technology provide threats.
The micro environment refers to the immediate business environment that can be adjusted, manipulated and controlled by the firm. It is also known as task environment (Pahwa, 2018). The elements of micro environment of business are:
Customers: Business revolves around fulfilling the needs and wants of customers. Every firm needs customers to survive and grow therefore companies’ marketing plan should be able to attract and keep customers with products that meet their needs (Tabetando, 2013).
Employees: Employees contribute significantly to the success of business. The quality of goods and services depends on the quality of employees that can be enhanced through training and development (Business Jargons, n.d.).
Competitors: If a business does not take into consideration the competitors’ responsiveness, the firm can find it very difficult to compete against them (Tabetando, 2013). Watching closely on the competitors’ activities is must for any business to plan accordingly and gain competitive advantage.
Suppliers: Suppliers provide raw materials required to produce finished goods. In order to capture the market and provide customers with best products, it is necessary to choose the suppliers who provide high quality materials at reasonable price.
Shareholders: While planning and executing any business activity, maximization of shareholders’ wealth should be considered so that they continue investing in the business.
Micro environmental factors may affect a company’s business operations, growth and success. A company should always be ready to do a good analysis of these factors and know their responsiveness to make necessary adjustments in marketing activities. However, it can be difficult for a firm to have entire control of micro environmental factors but the company should make an effort to continuously redefine, restructure and redesign the company’s competencies and networks in order to sustain in the market (Tabetando, 2013).
Pahwa, A. (2018, January 8). Marketing Environment: Explanation, Components, & Importance. Retrieved from Feedough: feedough.com/marketing-environment/
Project Management. (n.d.). Retrieved from Marketing Environment in Nepal and Its Impact on Marketing Activities: analysisproject.blogspot.com/2013/...
Tabetando, E. A. (2013). Micro Environmental Factors’ Influence On The International Marketing Strategy of Swedish Companies In Norway. Linnaeus University.
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As defined by business jargons, marketing environment refers to the internal and external factors that surround the business and influence its marketing operations. Some of these are controllable while some are not. The firm should be aware about its marketing environment to gain competitive advantage and minimize the negative impact on business due to change in environmental factors.
The marketing environment in Nepal consists of economic, political-legal, socio-economic and technological factors that directly or indirectly affects the business activities. Political parties, administrative policy, legal provision, constitution, economic condition, trade and transit policy, industrial policy, privatization policy, income distribution, economic policy, population, pressure group, reference group, social class, lifestyle, attitude, beliefs, religion, education, language, level of technology, research and development and technology transfer together form the business environment of Nepal (Project Management). Strong economic system, favorable economic policies, political stability and healthy competition provide opportunities to marketing but elements such as increase in instability, unhealthy competition, political instability, frequently changing economic policy and development in technology provide threats.
The micro environment refers to the immediate business environment that can be adjusted, manipulated and controlled by the firm. It is also known as task environment (Pahwa, 2018). The elements of micro environment of business are:
Customers: Business revolves around fulfilling the needs and wants of customers. Every firm needs customers to survive and grow therefore companies’ marketing plan should be able to attract and keep customers with products that meet their needs (Tabetando, 2013).
Employees: Employees contribute significantly to the success of business. The quality of goods and services depends on the quality of employees that can be enhanced through training and development (Business Jargons, n.d.).
Competitors: If a business does not take into consideration the competitors’ responsiveness, the firm can find it very difficult to compete against them (Tabetando, 2013). Watching closely on the competitors’ activities is must for any business to plan accordingly and gain competitive advantage.
Suppliers: Suppliers provide raw materials required to produce finished goods. In order to capture the market and provide customers with best products, it is necessary to choose the suppliers who provide high quality materials at reasonable price.
Shareholders: While planning and executing any business activity, maximization of shareholders’ wealth should be considered so that they continue investing in the business.
Micro environmental factors may affect a company’s business operations, growth and success. A company should always be ready to do a good analysis of these factors and know their responsiveness to make necessary adjustments in marketing activities. However, it can be difficult for a firm to have entire control of micro environmental factors but the company should make an effort to continuously redefine, restructure and redesign the company’s competencies and networks in order to sustain in the market (Tabetando, 2013).
References
Business Jargons. (n.d.). Marketing Environment . Retrieved from Business Jargons: businessjargons.com/marketing-envi...
Pahwa, A. (2018, January 8). Marketing Environment: Explanation, Components, & Importance. Retrieved from Feedough: feedough.com/marketing-environment/
Project Management. (n.d.). Retrieved from Marketing Environment in Nepal and Its Impact on Marketing Activities: analysisproject.blogspot.com/2013/...
Tabetando, E. A. (2013). Micro Environmental Factors’ Influence On The International Marketing Strategy of Swedish Companies In Norway. Linnaeus University.