Anything that directly or indirectly affects the market is considered as marketing environment. To make understanding easier the environment can be categorized under two heading. Any factor that is in close vicinity and can be influenced is called the micro environment while those aspects that are further away and cannot be influenced can be termed as macro environment. Kotler and Kellar have defined these two categories of environment as task environment and broad environment. The task environment comprising of customers, suppliers, stakeholders, shareholders, employees, competitors and media while the broad environment consisting of demographic, economic, social-cultural, natural, technological and political-legal environment. (Kotler & Kellar, 2012)
With two economic giants surrounding Nepal from all sides, the marketing environment is highly influenced by products from both the countries. India having open boarders and easier access, has higher stake in the market of Nepal and directly influences it. Everything from basic food, medicine to luxury goods are imported with little amounts being produced locally.
With an inflation rate of around 6% in January 2018 (Economics, 2018) and with a huge liquidity crisis that has been stretching for the better part of 2017 into 2018, Nepal’s marketing environment does not look very inviting for investors. "Bankers are worried as they have not been able to encourage deposits even after offering higher interest rates. In this difficult time, NRB is doing all it can to ease the liquidity crunch and had been injecting liquidity through repos to the banks. (Tandukar, 2017)” But with the gradually improvement and stability in the government, the people have expectation that the market environment will get better and regain composure.
Marketing is involved in creating customer value and satisfaction. For this there are various components that contribute for the value creation. Micro environment deals with these components which are customer, suppliers, employees, stakeholders, competitors and media.
Customers are the center of the marketing environment. The marketing is done for them and so value creation is targeted to meet their satisfaction. Thus catering to the customer and developing a sense of relation for long term loyalty is important.
Supplier are responsible for getting the products to the customers. These products have to reach the customers on time and in the quantity that they have demanded. Thus supplier plays a vital role in delivering the goods for customers’ satisfaction.
Employees help in the production of goods or service. Their hard and diligent work contributes tremendously to the creation of customer value. Timely and quality production is maintained by these employees and so directly affect the marketing environment.
Stakeholders that are related to the product or service directly affects the marketing environment. Stakeholders such as banks that lend money to the market, safety and quality check authorities, credit and insurance companies directly affect the market environment.
Competitors also affect how the marketing strategy or product development will be like. Companies should plant to their strength and at the same time be aware and try and have strategic advantage over their competitors.
Media is an important platform that the companies can use to get their product noticed by the mass. Various form of media such as television, radio, social media sites, newspaper, stickers, billboards etc are all forms of media. It is important to know what type of media should be used for what type of customer groups.
These are the microelements of marketing environment that directly affect it. Marketing person needs to understand the advantage of these micro factors to sell their product.
Kotler, P., & Kellar, K. L. (2012). Social Responsibility Marketing. In K. L. Philip Koter, Marketing Management (pp. 170-171). New Jersey: Prentice Hall.
Tandukar, S. (2017, January 17). How acute is the liquidity crunch? The Himalayan Times , p. 1. Retrieved from thehimalayantimes.com/business/how...
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Anything that directly or indirectly affects the market is considered as marketing environment. To make understanding easier the environment can be categorized under two heading. Any factor that is in close vicinity and can be influenced is called the micro environment while those aspects that are further away and cannot be influenced can be termed as macro environment. Kotler and Kellar have defined these two categories of environment as task environment and broad environment. The task environment comprising of customers, suppliers, stakeholders, shareholders, employees, competitors and media while the broad environment consisting of demographic, economic, social-cultural, natural, technological and political-legal environment. (Kotler & Kellar, 2012)
With two economic giants surrounding Nepal from all sides, the marketing environment is highly influenced by products from both the countries. India having open boarders and easier access, has higher stake in the market of Nepal and directly influences it. Everything from basic food, medicine to luxury goods are imported with little amounts being produced locally.
With an inflation rate of around 6% in January 2018 (Economics, 2018) and with a huge liquidity crisis that has been stretching for the better part of 2017 into 2018, Nepal’s marketing environment does not look very inviting for investors. "Bankers are worried as they have not been able to encourage deposits even after offering higher interest rates. In this difficult time, NRB is doing all it can to ease the liquidity crunch and had been injecting liquidity through repos to the banks. (Tandukar, 2017)” But with the gradually improvement and stability in the government, the people have expectation that the market environment will get better and regain composure.
Marketing is involved in creating customer value and satisfaction. For this there are various components that contribute for the value creation. Micro environment deals with these components which are customer, suppliers, employees, stakeholders, competitors and media.
Customers are the center of the marketing environment. The marketing is done for them and so value creation is targeted to meet their satisfaction. Thus catering to the customer and developing a sense of relation for long term loyalty is important.
Supplier are responsible for getting the products to the customers. These products have to reach the customers on time and in the quantity that they have demanded. Thus supplier plays a vital role in delivering the goods for customers’ satisfaction.
Employees help in the production of goods or service. Their hard and diligent work contributes tremendously to the creation of customer value. Timely and quality production is maintained by these employees and so directly affect the marketing environment.
Stakeholders that are related to the product or service directly affects the marketing environment. Stakeholders such as banks that lend money to the market, safety and quality check authorities, credit and insurance companies directly affect the market environment.
Competitors also affect how the marketing strategy or product development will be like. Companies should plant to their strength and at the same time be aware and try and have strategic advantage over their competitors.
Media is an important platform that the companies can use to get their product noticed by the mass. Various form of media such as television, radio, social media sites, newspaper, stickers, billboards etc are all forms of media. It is important to know what type of media should be used for what type of customer groups.
These are the microelements of marketing environment that directly affect it. Marketing person needs to understand the advantage of these micro factors to sell their product.
Reference
Economics, T. (2018). Nepal Inflation Rate . Retrieved from Trading Economics: tradingeconomics.com/nepal/inflati...
Kotler, P., & Kellar, K. L. (2012). Social Responsibility Marketing. In K. L. Philip Koter, Marketing Management (pp. 170-171). New Jersey: Prentice Hall.
Tandukar, S. (2017, January 17). How acute is the liquidity crunch? The Himalayan Times , p. 1. Retrieved from thehimalayantimes.com/business/how...