File Name: micro and macro environmental factors affecting business .zip
Every business is affected by a myriad of factors. It is a part of a larger entity known as the business environment. In broad terms, this environment can be divided into two categories. The first one is the micro-environment.
There are two elements within the external marketing environment; micro and macro. These environmental factors are beyond the control of marketers but they still influence the decisions made when creating a strategic marketing plan.
Micro and macro environments have a significant impact on the success of marketing activities, and therefore such environmental factors must be considered in-depth during the process of creating a strategic marketing plan. If you are interested in learning more about micro and macro environments, and strategic marketing as a whole, then you may be interested in the CIM Diploma in Professional Marketing.
The marketing course is ideal for individuals looking to build practical skills in marketing management and broaden their strategic perspective. For more information about studying with Oxford College of Marketing, call our team today on 0 or email enquiries oxfordpeg. Micro Environment Factors Suppliers: Suppliers can control the success of the business when they hold power. Resellers: If the product the organisation produces is taken to market by 3 rd party resellers or market intermediaries such as retailers, wholesalers, etc.
For example, if a retail seller is a reputable name then this reputation can be leveraged in the marketing of the product. The competition: Those who sell the same or similar products and services as your organisation is your market competition, and the way they sell needs to be taken into account.
How do their prices and product differentiation impact you? How can you leverage this to reap better results and get ahead of them? The general public: Your organisation has a duty to satisfy the public. Any actions of your company must be considered from the angle of the general public and how they are affected. The public has the power to help you reach your goals; just as they can also prevent you from achieving them.
Technological factors: The skills and knowledge applied to the production, and the technology and materials needed for the production of products and services can also impact the smooth running of the business and must be considered.
Social and cultural forces: The impact the products and services your organisations brings to market have on society must be considered. A recent example of this is the environment and how many sectors are being forced to review their products and services in order to become more environmentally friendly.
Wrap Up Micro and macro environments have a significant impact on the success of marketing activities, and therefore such environmental factors must be considered in-depth during the process of creating a strategic marketing plan. Facebook Twitter LinkedIn Email. Related Posts.
Marketing pp Cite as. The term micro-environment denotes those elements over which the marketing firm has control or which it can use in order to gain information that will better help it in its marketing operations. The objective of marketing philosophy as discussed in Chapter 1 is to make profits through satisfying customers. This is accomplished through the manipulation of the variables over which a company has control in such a way as to optimise this objective. In this case the ingredients are individual elements that marketing can manipulate into the most appropriate mix.
Business or Strategic management is the art, science, and craft of formulating, implementing and evaluating decisions that will enable an organization to achieve its long-term objectives. All strategic planning deals with at least one of three key questions:. In order to determine where it is going, the organization needs to know exactly where it stands, then determine where it wants to go and how it will get there. Strategic planning may also be a tool for effectively plotting the direction of a company; however, strategic planning itself cannot foretell exactly how the market will evolve and what issues will surface in the coming days in order to plan your organizational strategy. Strategic management seeks to coordinate and integrate the activities of the various functional areas of a business in order to achieve long-term organizational objectives.
Constantly watching and adapting to the changing marketing environment is important because the marketing environment offers both opportunities and threats. For example, an alliance with the supplier and distributor may help an organization to get a competitive edge over its rivals. On the other hand entry of many competitors poses a threat to the organization as some of their customers may shift to a new seller.
Your email address will not be published. Required fields are marked *