Micro and macro market enviroment Essay

In regularize to correctly identify opportunities and monitor threats, the troupe must(prenominal) begin with athorough understanding of the merchandising milieu in which the firm ope localises. The marketingsurround consists of either the actors and forces outside marketing that affect the marketingman termments ability to develop and maintain lucky relationships with its target customers.Though these factors and forces may diversify depending on the specific confederation and industrial stem, they rout out generally be dual-lane into broad micro environmental and macro environmentalcomponents.For near companies, the micro environmental components ar the caller,suppliers, marketing transplant firms (intermediaries), customer markets, competitors, and macrocosmswhich combine to restore up the smart sets value deli genuinely system. The macro environmentalcomponents argon thought to be demographic, economic, indispensable, technological, policy-making, and ethnic for ces. The wise marketing manager k straightship canal that he or she dejectionnot always affectenvironmental forces. However, smart managers can take a proactive, rather than reactive,approach to the marketing environment.As marketing management collects and processes data on these environments, they must be ever vigilant in their efforts to apply what they learn to developing opportunities and dealing withthreats. Studies put up shown that fantabulous companies not only swallow a keen sense of customer butan appreciation of the environmental forces swirling nigh them.By constantly looking at thedynamic changes that atomic number 18 occurring in the aforementioned environments, companies are better lively to hold to change, stand up long- shed strategy, meet the needs of todays andtomorrows customers, and compete with the impatient competition present in the globalmarketplace. All firms are encouraged to adopt an environmental management situation in thenew millennium.A com panys marketing environmentconsists of the actors and forces outside marketing thataffect marketing managements ability to develop and maintain successful relationships with itstarget customers.1). Being successful means being able to adapt the marketing mix to turns and changes thisenvironment.2). Changes in themarketing environment are often quick and unpredictable.3). The marketing environment offers both opportunities and threats.4). The company must use its marketing research and marketing intelligence systems to monitor the changing environment.5). Systematic environmental scanning befriends marketers to revise and adapt marketing strategiesto meet new challenges and opportunities in the marketplace. The marketing environment ismade up of a1. Micro environmental2. macro instruction-environment1. Micro surroundalThe microenvironment consists of five components. The first is the organizations inner(a)environmentits several departments and management levelsas it affects mar ketingmanagements decision making. The second component includes the marketing canalise firmsthat encourage to create value the suppliers and marketing intermediaries (middlemen, physicaldistribution firms, marketing- advantage agencies, financial intermediaries). The third componentconsists of the five types of markets in which the organization can tell on the consumer, producer,reseller, government, and international markets. The fourth component consists of thecompetitors facing the organization.The fifth component consists of all the publics that have anactual or likely interest in or impact on the organizations ability to achieve its objectivesfinancial, media, government, citizen action, and local, general, and intrinsic publics. So themicroenvironment consists of six forces close to the company that affect its ability to table attend itscustomersa. The company itself (including departments). b. Suppliers.c. Marketing channel firms (intermediaries).d. Customer markets.e . Competitors.f. Publics. 1. The Companys MicroenvironmentAs discussed earlier the companys microenvironment consists of six forces that affect its abilityto serve its customers. Lets discuss these forces in detail a. The CompanyThe first force is the company itself and the role it plays in the microenvironment. This could bedeemed the internal environment.1). Top management is responsible for setting the companys mission, objectives, broadstrategies, and policies.2). Marketing managers must make decisions at bottom the parameters established by topmanagement.3). Marketing managers must in any case work closely with other company departments.Areas such(prenominal) asfinance, R & D, purchasing, manufacturing, and accounting all produce better results whenaligned by common objectives and goals.4). All departments must sound off consumer if the firm is to be successful. The goal is to providesuperior customer value and satisfaction. b. SuppliersSuppliers are firms and individuals tha t provide the resources needed by the company and itscompetitors to produce goods and services. They are an important link in the companys overallcustomer value delivery system.1). adept consideration is to watch supply availability (such as supply shortages).2). Another point of restore is the observe of price trends of key inputs. Rising supply costsmust be conservatively monitored. c. Marketing IntermediariesMarketing intermediaries are firms that help the company to promote, sell, and distribute itsgoods to final buyers.1). Resellersare distribution channel firms that help the company find customers or make salesto them.2). These include wholesalers and retailers who buy and resell merchandise.3). Resellers often perform important functions to a greater extent cheaply than the company can performitself. However, seeking and working with resellers is not easy because of the power that somedemand and use. Physical distribution firmshelp the company to stock and move goods from their points of blood line to their destinations. Examples would be warehouses (that store and protect goods beforethey move to the next destination). Marketing service agencies(such as marketing research firms, advertising agencies, mediafirms, etc.) help the company target and promote its products. Financial intermediaries(such as banks, credit companies, insurance companies, etc.) helpfinance transactions and insure against risks. d. CustomersThe company must study its customer markets closely since from each one market has its own specialcharacteristics. These markets normally include1).Consumer markets(individuals and households that buy goods and services for personalconsumption).2). Business markets(buy goods and services for further touch on or for use in their production process).3). Reseller markets(buy goods and services in order to resell them at a profit).4). Government markets(agencies that buy goods and services in order to produce publicservices or transfer them to those that need them).5). supranational markets(buyers of all types in foreign countries)e. CompetitorsEvery company faces a wide range of competitors. A company must secure a strategic advantageover competitors by positioning their offerings to be successful in the marketplace. No singlecompetitive strategy is best for all companies. f. PublicsApublicis any free radical that has an actual or say-so interest in or impact on an organizationsability to achieve its objectives. A company should prepare a marketing plan for all of their major publics as well as their customer markets. Generally, publics can be identified as being1). Financial publicsinfluence the companys ability to come funds.2). Media publicscarry news, features, and editorial opinion.3). Government publicstake developments into account.4).Citizen-action publicsa companys decisions are often questioned by consumer organizations.5). Local publicsincludes neighborhood residents and community organizations.6). Gene ral publicsa company must be concerned about(predicate) the general publics attitude toward its products and services.7). Internal publicsworkers, managers, volunteers, and the board of directors.2.MACRO ENVIRONMENTThe Companys Macro environmentThe company and all of the other actors operate in a larger macro environmentof forces thatshape opportunities and pose threats to the company. There are six major forces (outlined below)in the companys macro environment. There are six major forces (outlined below) in thecompanys macro environment.a. demographic. b. Economic.c. Natural.d. Technological.e. Political.f. ethnical.a. DemographicEnvironment Demography is the study of gentle populations in terms of size, density, location, age, sex, race,occupation, and other statistics. It is of major interest to marketers because it involves people and people make up markets. Demographic trends are constantly changing. Some more interestingones are.1). The worlds population (though not all coun tries) rate is growing at an explosive rate that willsoon exceed food supply and ability to adequately service the population. The greatest danger isin the poorest countries where poverty contributes to the difficulties.Emerging markets such asChina are receiving increased attention from global marketers.2). The close to important trend is the changing age structure of the population. The population isaging because of a slowdown in the consanguinity rate (in this country) and life expectancy is increasing.The baby boomers following World War II have produced a huge bulge in our populationsage distribution.The new prime market is the middle age group (in the future it will be the senior citizen group). There are many subdivisions of this group.a). Generation Xthis group lies in the shadow of the boomers and lack obvious distinguishingcharacteristics. They are a very cynical group because of all the difficulties that have surroundedand impacted their group.b). Echo boomers(baby boom lets) are the large growing kid and teen market. This group is usedto affluence on the part of their parents (as different from the Gen Xers). One distinguishingcharacteristic is their utter fluency and comfort with computer, digital, and Internet technology(sometimes called Net-Gens).c). generational marketing is possible, however, caution must be used to avoid generationalalienation. Many in the modern family now telecommutework at home or in a remote officeand conduct their patronage utilize fax, cell phones, modem, or the Internet In general, the population is becoming better educated.The work force is be-coming more white-collar.Products such as books and education services appeal to groups following this trend. Technicalskills (such as in computers) will be a must in the future. The final demographic trend is theincreasing ethnic and racial diversity of the population. regeneration is a force that must berecognized in the next decade. However, companies must recognize that diversity goes beyond ethnic heritage. One the important markets of the future are that disabled people (a market larger any of our ethnic minority groups).b. Economic EnvironmentThe economic environment includes those factors that affect consumer purchasing power andspending patterns. Major economic trends in the United States include1). Personal consumption (along with personal debt) has gone up (1980s) and the early mid-nineties brought recession that has caused adjustments both personally and corporately in this country.Today, consumers are more careful shoppers.2).Value marketing(trying to offer the consumer greater value for their dollar) is a very seriousstrategy in the 1990s. Real income is on the rise again but is being carefully guarded by a value-conscious consumer.3).Income distributionis still very skewed in the U. S. and all classes have not shared in prosperity. In addition, spending patterns show that food, housing, and transportation stillaccount for the majority o f consumer dollars. It is also of note that distribution of income hascreated a two-tiered market where there are those that are affluent and less affluent. Marketersmust carefully monitor economic changes so they will be able to prosper with the trend, notsuffer from it .c. Natural EnvironmentThe natural environment involves natural resources that are needed as inputsby marketers or that are affected by marketing activities. During the past two decades environmental concernshave steadily grown. Some trend analysts labeled the specific areas of concern were 1).Shortages of raw materials.Staples such as air, water, and wood products have been seriously damaged and non-renewablesuch as oil, coal, and various minerals have been seriously depleted during industrial expansion.2). change magnitude pollutionis a worldwide problem. Industrial damage to the environment is very serious. Far-sightedcompanies are becoming environmentally friendly and are producing environmentally safe andrecycl able or biodegradable goods. The public response to these companies is encouraging.However, lack of adequate funding, especially in third world countries, is a major barrier.3).Government hitch in natural resource management has caused environmental concerns to be more practical andnecessary in business and industry. Leadership, not punishment, seems to be the best policy for long-term results. Instead of opposing regulation, marketers should help develop solutions to thematerial and elan vital problems facing the world.4).Environmentally sustainable strategies.The so-called green movement has encouraged or even demanded that firms produce strategiesthat are not only environmentally friendly but are also environmentally proactive. Firms are scratch to recognize the link between a healthy economy and a healthy environment.d. Technological EnvironmentThe technological environmentincludes forces that create new technologies, creating new product and market opportunities. 1). Techno logy is perhaps the most dramatic force shaping our destiny 2). New technologies create new markets and opportunities.3). The following trends are expense watchinga). Faster pace of technological change. Products are beingtechnologically outdated at a rapid pace. b). There seems to be almost unlimited opportunities being developed daily. Consider theexpanding . fields of health care, the space shuttle, robotics, and biogenetic industries. c). The challenge is not only technical but also commercialto make practical, affordableversions of . . products. d). Increased regulation. Marketers should be aware of the regulations concerning product safety,individual privacy, and other areas that affect technological changes. They must also be alert to . any.possible negative aspects of an innovation that might harm users or arouse opposition. e. Political EnvironmentThe political environment includes laws, government agencies, and pressure groups thatinfluence and . limit various organizatio ns and individuals in a given club. Various forms of polity regulate business.1). Governments developpublic policy to guide commercesets of laws and regulations limiting business for the good of auberge as a whole.2). Almost every marketing activity is subject to a wide range of laws and regulations. Sometrends in the political environment include1). Increasing legislation toa).Protect companies from each other.b).Protecting consumersfrom unfair business practices.c).Protecting interests of society against unrestrained business behavior.2). Changing government agency enforcement. New laws and their enforcement will continue or increase.3). Increased emphasis on ethics and socially responsible actions. Socially responsible firmsactively seek out ways to protect the long-run interests of their consumers and the environment.a). Enlightened companies encourage their managers to look beyond regulation and do the rightthing. b). Recent scandals have increased concern about ethics and s ocial responsibility. c). The boom in e-commerce and Internet marketing has created a new set of social and ethicalissues. Concerns are Privacy, Security, Access by vulnerable or unauthorized groups.f. Cultural EnvironmentThe cultural environment is made up of institutions and other forces that affect societys basicvalues, perceptions, preferences, and behaviors. true cultural characteristics can affectmarketing decision-making. Among the most dynamic cultural characteristics are 1). Persistence of cultural values. masss core beliefs and values have a high degree of persistence. Core beliefs and values are passed on from parents to children and are reinforced byschools, churches, business, and government. Secondary beliefs and values are more open tochange.2). Shifts in secondary cultural values. Since secondary cultural values and beliefs are open tochange, marketers want to spot them and be able to capitalise on the change potential. Societysmajor cultural views are expressed i na).Peoples views of themselves.People vary in their emphasis on serving themselves versusserving others. In the 1980s, personal ambition and materialism increased dramatically, withsignificant implications for marketing. The vacant industry was a chief beneficiary.b).Peoples views of others.Observers have noted a shift from a me-society to a we-society. Consumers are spending more on products and services that will improve their livesrather than their image.c). Peoples views of organizations.People are willing to work for large organizations butexpect them to becomeincreasingly socially responsible. Many companies are linkingthemselves to worthwhile causes. Honesty in appeals is a must.d).Peoples views of society.This orientation influences consumption patterns. Buy Americanversus buying abroad is an issue that will continue into the next decade.e).Peoples view of reputation.There is a growing trend toward peoples feeling of mastery over nature through technology and the belief that nature is bountiful. However, nature is finite. Loveof nature and sports associated with nature are expected to be significant trends in the nextseveral years.f).Peoples views of the universe.Studies of the origin of man, religion, and thought-provokingad campaigns are on the rise. Currently, Americans are on a spiritual journey. This will probablytake the form of spiritual individualism.