Marketing environment consists of forces that directly and indirectly influence the organizations marketing activities. Armstrong, Kotler, Harker & Brennan (2015), in their book Marketing: an Introduction, marketing environment is also termed as the actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers. To make understanding easier the environment can be categorized under two heading i.e. micro environment and macro environment. Micro environment is any factor that in close vicinity and can be influenced; whereas, macro environment are those aspects that are further away and cannot be influenced. Here, the micro environment factors include the actors close to the company namely shareholder, employee, customer, competitors, media, suppliers etc. and the macro environment factors are larger societal forces namely demographic factor, economic factor, technological factor, political factor etc.
Nepal’s geographical location between two Asian giant’s India and China is important for the development of marketing activities. These two countries comprise half of world’s population and largest market in world. But, the result is just opposite to both of them to Nepal. The political instability is the main reason behind the decline of the economy. Economic environment is the very important environment to affect marketing. If the economic environment is favourable, business organization can get sufficient opportunities, and if it is adverse, they have to face different challenges. Nepal’s economic environment has been gradually changing which also needs to be changed. In the same way, the country is not enriched by resources of minerals and petroleum products. Instead of focus to these minerals and petroleum, we can be enriched to agricultural sector, tourism sector, import & export of tea/coffee/garments and so on. The inflation rate in Nepal was recorded at 6 percent in March of 2018 (Nepal inflation rate, 2018). This doesn’t show the flow of new commerce in business. The economy is also not so friendly that it is a waiting for investors. The government should strictly determine to the new investors in business so that it ultimately boom the whole economy.
Micro environment deals with the components and they are shareholders, customers, suppliers, employees, stakeholders, competitors and media.
a. Shareholders are the owners of organisations where they may decide to raise money by floating on the stock market i.e. move from private to public ownership.
b. Customers are the centre of the marketing environment. They are the rivals, which compete with the firm in the market and resources as well. The marketing is done for them and so value creation is targeted to meet their satisfaction.
c. Suppliers are the ones who provide inputs to the business like raw material, equipment and so on. They hold the power when they are the only or the largest supplier of their goods. The supplier’s product is a core part of the buyer’s finished product and/or business.
d. Employees help in the production of goods or service. Their hard and diligent work contributes in creating customer value. If a business employs staff without motivation, skills or experience it will affect customer service and ultimately sales.
e. Stakeholders 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.
f. Competitors also affect how the marketing strategy or product development will be like. Those who sell same or similar products and services as your organisation are your market competition, and they way they sell needs to be taken into account.
g. Media is an important platform that the companies can use to get their product noticed by the mass. Positive media attention can "make” an organisation (or its products) and negative media attention can "break” an organisation. Organisations need to manage the media so that the media help promote the positive things about the organisation and reduce the impact of a negative event on their reputation (Oxford College of Marketing, n.d.).
References
Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction . Pearson Education.
Oxford College of Marketing. (n.d.). The Impact Of Micro and Macro Environment Factors on Marketing . Retrieved from blog.oxfordcollegeofmarketing.com/...
For further actions, you may consider blocking this person and/or reporting abuse
We're a place where students share, stay up-to-date, learn and grow.
Marketing environment consists of forces that directly and indirectly influence the organizations marketing activities. Armstrong, Kotler, Harker & Brennan (2015), in their book Marketing: an Introduction, marketing environment is also termed as the actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers. To make understanding easier the environment can be categorized under two heading i.e. micro environment and macro environment. Micro environment is any factor that in close vicinity and can be influenced; whereas, macro environment are those aspects that are further away and cannot be influenced. Here, the micro environment factors include the actors close to the company namely shareholder, employee, customer, competitors, media, suppliers etc. and the macro environment factors are larger societal forces namely demographic factor, economic factor, technological factor, political factor etc.
Nepal’s geographical location between two Asian giant’s India and China is important for the development of marketing activities. These two countries comprise half of world’s population and largest market in world. But, the result is just opposite to both of them to Nepal. The political instability is the main reason behind the decline of the economy. Economic environment is the very important environment to affect marketing. If the economic environment is favourable, business organization can get sufficient opportunities, and if it is adverse, they have to face different challenges. Nepal’s economic environment has been gradually changing which also needs to be changed. In the same way, the country is not enriched by resources of minerals and petroleum products. Instead of focus to these minerals and petroleum, we can be enriched to agricultural sector, tourism sector, import & export of tea/coffee/garments and so on. The inflation rate in Nepal was recorded at 6 percent in March of 2018 (Nepal inflation rate, 2018). This doesn’t show the flow of new commerce in business. The economy is also not so friendly that it is a waiting for investors. The government should strictly determine to the new investors in business so that it ultimately boom the whole economy.
Micro environment deals with the components and they are shareholders, customers, suppliers, employees, stakeholders, competitors and media.
a. Shareholders are the owners of organisations where they may decide to raise money by floating on the stock market i.e. move from private to public ownership.
b. Customers are the centre of the marketing environment. They are the rivals, which compete with the firm in the market and resources as well. The marketing is done for them and so value creation is targeted to meet their satisfaction.
c. Suppliers are the ones who provide inputs to the business like raw material, equipment and so on. They hold the power when they are the only or the largest supplier of their goods. The supplier’s product is a core part of the buyer’s finished product and/or business.
d. Employees help in the production of goods or service. Their hard and diligent work contributes in creating customer value. If a business employs staff without motivation, skills or experience it will affect customer service and ultimately sales.
e. Stakeholders 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.
f. Competitors also affect how the marketing strategy or product development will be like. Those who sell same or similar products and services as your organisation are your market competition, and they way they sell needs to be taken into account.
g. Media is an important platform that the companies can use to get their product noticed by the mass. Positive media attention can "make” an organisation (or its products) and negative media attention can "break” an organisation. Organisations need to manage the media so that the media help promote the positive things about the organisation and reduce the impact of a negative event on their reputation (Oxford College of Marketing, n.d.).
References
Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction . Pearson Education.
Nepal inflation rate. (2018). In tradingeconomics . Retrieved from tradingeconomics.com/nepal/inflati...
Oxford College of Marketing. (n.d.). The Impact Of Micro and Macro Environment Factors on Marketing . Retrieved from blog.oxfordcollegeofmarketing.com/...