Marketing environment.

Marketing environment is the combination of some actors and forces that influence marketing activities. These elements affect marketing activities directly and indirectly.

According to Philip kotler “A company’s marketing environment consists of the actors and forces outside of marketing that affect marketing management ability to build and maintain successful relationships with target customers”.

From the above definition we can say that;

1. Marketing environment is the combination of some actors and forces.
2. Marketing environment has direct and indirect effect on marketing activities.
3. The elements of marketing environment are changeable.
4. Marketing environment creates threats and opportunities for organization.

Types of Marketing Environment:

There are tow types of marketing environments.

1. Micro Environment.
2. Macro Enviroment.

1. Micro Environment: The micro-environment describes those elements which impact directly on a company.
According Philip Kotler “The micro environment consists of the actors close to the company that affect its ability to serve its customers”.

The elements of micro environment are given below:

• Company.
• Suppliers.
• Marketing intermediaries.
• Competitors.
• Publics.
• Customers.

From the above discussion we can say that;
1. The elements of micro environment are close to the company.
2. It is under controllable of company.
3. These elements are directly related with company.

2. Macro Environment: The actors and forces that affect marketing activities indirectly is called macro environment. These elements are totally uncontrollable by company. According to Philip Kotler “Macro environment consists of the larger societal forces that affect the microenvironment”.

The elements of macro environment are:

• Demographic environment.
• Economic environment.
• Natural environment.
• Technological environment.
• Political environment.
• Cultural environment.

From the above discussion we can say that;

1. Macro environment elements affect marketing activities indirectly.
2. Marketer can not control these elements.
3. These elements creates threats and opportunities for company.

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Influence of Micro Environment on Marketing:

The micro-environment describes those elements which impact directly on a company and company can control these elements partly. Now the impact of micro environment on marketing activities is described below;

A. Company: It is an important element of micro environment. It is an organization which has legal authority. Company is a corporate enterprise that has a legal identity separate from that of its members, it operates as one single unit, in the success of which all the members participate. Company has various departments (Top management, Finance, Research and Development, Purchase, Production, Marketing, Accounting etc). These departments are directly related with each other. So marketer has to make combination among these departments for conducting their marketing activities.

B. Suppliers: Actually, they supply raw materials for producing products. Suppliers are firms and individuals that provide the resources needed by the company to produce its goods and services. Suppliers play an important role in marketing. So marketer should consider some factors when select supplier. These are;

• Ability supply standard raw materials.
• Ensure of supply in actual price.
• Supply of raw materials in due.
• Supply of raw material in time.

C. Marketing Intermediaries: Marketing intermediaries are some independents organization those are related with sales, distribute and perform various types of promotional activities. Marketing intermediaries are firms that help the company to promote, sell and distribute its goods to final buyers. There are various types of marketing intermediaries in the marketing programs. These are given below:

• Agent middlemen.
• Merchant middlemen.
• Physical distribution firms.
• Financial intermediaries.

D. Competitors: Competitors are some individuals or organizations who produce same products or services. Marketing activities are influenced by competitors. So marketer has to analysis these competitors for identifying their strong and weakness points.

E. Publics: Publics are the organization of people which has impact on marketing programs. A public is any group that has on actual and potential interest in or impact on an organization’s ability to achieve its objectives. There are various types of publics;

• Financial publics.
• Media publics.
• Govt. publics.
• Citizen action publics.
• Local publics etc.

E. Customers: Customers are individuals or organizations who purchase goods and services for personal consumption or further production. Customer is the individual or organization that actually makes a purchase decision. Customers play an important role in marketing programs. So, marketer should consider customer related factors very consciously. There are various types of customers;

• Consumer market.
• Business market.
• Reseller market.
• Govt. market.
• International market.

The elements of micro- environment sometimes create threats and opportunities for company. So, marketer should consider these elements consciously for conducting marketing programs.

Influence of Macro Environment on Marketing:

The actors and forces that affect marketing activities indirectly is called macro environment. These elements are totally uncontrollable by company. The influences of macro environment on marketing are described below:

A. Demographic Environment: The demographic environment is the major interest to marketers because it involves people, and people make up markets. The people of different parts in the world are totally different from each others. Their consumption patterns are different and it has impact on marketing programs. The factors of demographic environment are given below:

• Changing age structure of population.
• Changed family life.
• Geographic shifts in population.
• Education and profession.
• Increasing diversity.

B. Economic Environment: Economic environment is the combination of some elements (Gross domestic production, Profit, Inflation rate, Productivity, rate of interest etc). The economic environment consists of factors that affect consumer purchasing power and spending patterns. Economic environment has impact on consumption pattern of customer. The factors of economic environment are given below:

• Changes in  income.
• Changing consumer spending patterns.
• Low rate of saving and high rate of debt.

C. Natural Environment: Natural environment is the combination of (Weather, Climate, river, mineral resources, etc.). The availability of natural resources is important factors for industry. The natural environment involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities. The factors of natural environment are given below:

• Shortage of raw materials.
• Increasing cost of energy.
• Increasing levels of environment pollution.
• Govt. intervention in natural resource management.

D. Technological Environment: Technological environment is the combination some elements which develop new products and also create opportunities and threats for the company.  Technological environment is the forces that create new technologies, creating new product and market opportunities. Technology creates opportunity for customers to consume new products.  The factors of technological environment are given below:

• Faster pace of technological change.
• Unlimited opportunities.
• High research and development budget.
• Increased regulation.

E. Political Environment: Political environment is the combination of Govt. rules, law, and different influential parties. Political environment consists of law, government agencies and pressure groups that influence and limit various organizations and individuals in a given society. The factors of political environment are given below:

• Legislation regulating business.
• Increasing legislation.
• Growth of public interest groups.
• Changing government agency enforcement.