Market environment - Wikipedia
Home» Marketing Environment – Micro and Macro Environments prepare & maintain profitable relationships with the target customers is affected by The forces & factors of the Marketing Environment vary on the basis of. The business environment is a marketing term and refers to factors and forces that affect a firm's ability to build and maintain successful customer relationships. The three levels of the environment are: Micro (internal) environment – small forces within the company that affect its Macro (external) environment – larger societal forces that affect the. Marketing Environment is the combination of external and internal and forces which affect the company's ability to establish a relationship The external environment is further divided into two components: micro & macro.
They must stay informed of trends so they can be part of the next big thing, rather than becoming outdated and suffering the consequences financially. In order to understand the different spending patterns, marketers need to also take into consideration about the development of digital technology and its effect on market growth and employment.
It is key for a marketer, especially in a digitally-dominated market, to anticipate demand in order to capitalise on potential market growth. Technology has developed to the extent where purchase patterns can be analysed in order to forecast future demand . The political environment includes all lawsgovernment agenciesand groups that influence or limit other organizations and individuals within a society. It is important for marketers to be aware of these restrictions as they can be complex.
Some products are regulated by both state and federal laws. There are even restrictions for some products as to who the target market may be, for example, cigarettes should not be marketed to younger children. There are also many restrictions on subliminal messages and monopolies. As laws and regulations change often, this is a very important aspect for a marketer to monitor. As laws and regulations change often, they create barriers that can hugely influence the way in which companies can market their business across the digital community in particular.
When conducting business in the United Kingdomthe government is committed to ensuring the best possible platform to start and grow a UK digital business therefore Internet Governance becomes a vital force in the management and control of the growth of the internet and its usage  The final aspect of the macro-environment is the social environment, which consists of institutions and basic values and beliefs of a group of people.
The values can also be further categorized into core beliefs, which passed on from generation to generation and very difficult to change, and secondary beliefs, which tend to be easier to influence.
As a marketer, it is important to know the difference between the two and to focus your marketing campaign to reflect the values of a target audience.
These values can also be further categorized into core beliefs, which passed on from generation to generation and very difficult to change, and secondary beliefs, which tend to be easier to influence. With entering into an age where technology has a key role in the forming of social beliefs and values, cultural diversity has developed within the world of digital communities . FacebookTwitterLinkedIn. These digital communities consist of many groups of demographics that involve different levels of Internet usage and versatile behaviour with online purchasing .
When dealing with the marketing environment it is important for a company to become proactive. By doing so, they can create the kind of environment that they will prosper in and can become more efficient by marketing in areas with the greatest customer potential. It is important to place equal emphasis on both the macro and micro environment and to react accordingly to changes within them.
Environmental monitoringenvironmental forecasting and environmental assessment complete the global environmental analysis. The global environment refers to the macro environment which comprises industriesmarketscompaniesclients and competitors. Consequently, there exist corresponding analyses on the micro-level. Supplierscustomers and competitors representing the micro environment of a company are analyzed within the industry analysis.
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Issues are often forerunners of trend breaks. A trend break could be a value shift in societya technological innovation that might be permanent or a paradigm change. Issues are less deep-seated and can be 'a temporary short-lived reaction to a social phenomenon '. Environmental scanning reinforces productive strategic plans and policies that can be implemented to make the organization get the maximum use of the business environment they are in.
Environmental scanning helps a business improve their decision-making process in times of risk to the external and internal environments the business is in. The scanning process makes the organization aware of what the business environment is about. It allows the organization to adapt and learn from that environment. Environmental scanning is a useful tool for strategic management as it helps them to create and develop the aims and objectives of the company which assists with the production of the company or organization.
When looking at the weaknesses of the organization's placing in the current business environment a formal environmental scanning is used. The name refers to the term Demography. The latter refers to the study of human populations. This includes size, density, age, gender, occupation and other statistics.
Why are people important? Because, on the whole, their needs is the reason for businesses to exist. In other words, people are the driving force for the development of markets. The large and diverse demographics both offer opportunities but also challenges for businesses.
Especially in times of rapid world population growth, and overall demographic changes, the study of people is crucial for marketers.
Macro environmental factors vs. micro environmental factors | siobhan c. scott
The reason is that changing demographics mean changing markets. Further, changing markets mean a need for adjusted marketing strategies.
Therefore, marketers should keep a close eye on demographics. This may include all kinds of characteristics of the population, such as size, growth, density, age- and gender structure, and so on. Some of the most important demographic trends that affect markets are: World population growth The world population is growing at an explosive rate. Already init reached 7 million, while being expected to reach 8 billion by the year By the end of the century, it is likely to double.
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However, the strongest growth occurs where wealth and stability is mostly absent. This changes requirements for effective marketing strategies and should be kept in mind. Changing age structure The changing age structure of world population is another critical factor influencing marketing.
In the future, there will be countries with far more favourable age structures than others. For example, India has one of the youngest populations on earth and is expected to keep that status. Bythe median age in India will be 28 years.
In contrast, the countries of the European Union and the USA have to face an aging population already today. This may lead to harmful reductions in dynamism and challenges regarding the supply of young workers who, at the same time, have to support a growing population of elderly people. Technology allows companies to know exactly how much of a product they have in a warehouse, in transit or on the shelves in stores due to bar codes that can be scanned at each point.
Technology is works in many ways such as communication, tracking and marketing to name a few. The political environment influences marketing through government agencies, laws and groups. These beliefs influence our daily lives. Some of these forces are suppliers, the companycompetitors, marketing intermediaries, public and customers.
Suppliers are an important force in the value delivery network. Suppliers are responsible for getting the product to the point where it can go to market.
Suppliers deliver or supply raw materials, goods or services. If a supplier can not do their part in the marketing supply chain then the company may lose sales, damage customer relationships and impact the economy.
Competitors should always be a force to consider when bringing a product or service to the market. Making sure that the company can adapt to the needs of the target market will help when entering the market.