Lecture 5

Micro Environment

Md. Shayekh Munir

 Marketing Environment
• A company's marketing environment consists of
the factors and forces outside marketing that
affect marketing management's ability to develop
and maintain successful transactions with its
target customers.
• The marketing environment offers both
opportunities and threats.
• Successful companies know the vital importance
of using their marketing research and intelligence
systems constantly to watch and adapt to the
changing environment.
 The marketing environment consists of a Micro
environment and a Macro environment.

• The microenvironment consists of the actors

close to the company that affect its ability to
serve its customers—the company, suppliers,
marketing intermediaries, customer markets,
competitors, and publics.

• The macro environment consists of the larger

societal forces that affect the
microenvironment—demographic, economic,
natural, technological, political, and cultural
forces. We look first at the company’s
microenvironment.
Factors in the Microenvironment
The Company:
• In designing marketing plans, marketing management
takes other company groups into account—groups
such as top management, finance, research and
development (R&D), purchasing, operations, and
accounting.
• All of these interrelated groups form the internal
environment.
• Top management sets the company’s mission,
objectives, broad strategies, and policies.
• Marketing managers make decisions within the
strategies and plans made by top management.
Suppliers:
• Suppliers form an important link in the company’s overall
customer value delivery network.
• They provide the resources needed by the company to
produce its goods and services.
• Supplier problems can seriously affect marketing. Marketing
managers must watch supply availability and costs.
• Supply shortages or delays, labor strikes, and other events can
cost sales in the short run and damage customer satisfaction
in the long run.
• Rising supply costs may force price increases that can harm
the company’s sales volume.
• Most marketers today treat their suppliers as partners in
creating and delivering customer value. For example,
Toyota knows the importance of building close
relationships with its suppliers. In fact, it even includes
the phrase achieve supplier satisfaction in its mission
statement.
Marketing Intermediaries:
• Marketing intermediaries help the company
promote, sell, and distribute its products to final
buyers.
• They include resellers, physical distribution firms,
marketing services agencies, and financial
intermediaries.
• Resellers are distribution channel firms that help
the company find customers or make sales to
them.
• These include wholesalers and retailers who buy
and resell merchandise.
• Competitors:
• The marketing concept states that, to be
successful, a company must provide greater
customer value and satisfaction than its
competitors do.
• Thus, marketers must do more than simply
adapt to the needs of target consumers.
• They also must gain strategic advantage by
positioning their offerings strongly against
competitors’ offerings in the minds of
consumers.
• Publics: The company’s marketing environment also includes
various publics. A public is any group that has an actual or potential
interest in or impact on an organization’s ability to achieve its
objectives. We can identify seven types of publics:

I. Financial publics. This group influences the company’s ability to

obtain funds. Banks, investment analysts, and stockholders are
the major financial publics.
II. Media publics. This group carries news, features, and editorial
opinion. It includes newspapers, magazines, television stations,
and blogs and other Internet media.
III. Government publics. Management must take government
developments into account. Marketers must often consult the
company’s lawyers on issues of product safety, truth in
advertising, and other matters.
IV. Citizen-action publics. A company’s marketing decisions may be
questioned by consumer organizations, environmental groups,
minority groups, and others. Its public relations department can
help it stay in touch with consumer and citizen groups
IV. Local publics. This group includes neighborhood residents
and community organizations. Large companies usually
create departments and programs that deal with local
community issues and provide community support.

V. General public. A company needs to be concerned about

the general public’s attitude toward its products and
activities. The public’s image of the company affects its
buying.

VI. Internal publics. This group includes workers, managers,

volunteers, and the board of directors. Large companies
use newsletters and other means to inform and motivate
their internal publics. When employees feel good about
the companies they work for, this positive attitude spills
over to the external publics.
• Customers: As we’ve emphasized throughout, customers are the most
important actors in the company’s microenvironment.
• The aim of the entire value delivery network is to serve target customers
and create strong relationships with them.

• The company might target any or all five types of customer markets.
Consumer markets consist of individuals and households that buy goods
and services for personal consumption.
• Business markets buy goods and services for further processing or use in
their production processes, whereas reseller markets buy goods and
services to resell at a profit
• Government markets consist of government agencies that buy goods and
services to produce public services or transfer the goods and services to
others who need them.
• Finally, international markets consist of these buyers in other countries,
including consumers, producers, resellers, and governments. Each market
type has special characteristics that call for careful study by the seller.
Thanks For your attention