Discuss the Micro Environmental factors in Marketing Environment Dynamics
- (1) Consumer Market – these are individuals, households or institutional buyers that buy products for personal consumption. ...
- (2) Business/ Industrial Market – organisations which buy products for further processing and manufacturing other products. ...
- (3) Reseller Market – these customers buy products to sell them at profits.
What are micro environment factors?
Micro environment. The environment factors that can be influenced and controlled by the organization is called micro environment factors which includes customers, employees, suppliers, share holders, media and competitors.
What are the factors that influence the marketing environment?
There are two kinds of external marketing environments; micro and macro. These environments’ factors are beyond the control of marketers but they still influence the decisions made when creating a strategic marketing strategy. Micro Environment Factors. The suppliers: Suppliers can control the success of the business when they hold the power.
How do micro factors affect a business?
Mostly, in the marketing environment, micro factors do not affect all the businesses in the industry in the same manner. The reason is that every business is different in size, capacity, financial resources, human resources and overall strategies. For example, competitors affect the business decision-making process.
What is micro environment in marketing?
Micro Environment Definition, Factors & Example. Definition. The micro environment in marketing includes all those micro factors that affect business strategy, decision making and performance. It is vital for business success to conduct macro environment and micro environment analysis before decision-making process.
What are examples of micro factors that affect marketing?
Six microeconomic business factors that affect almost any business are customers, employees, competitors, media, shareholders and suppliers.The Impact of Customers. ... Availability of Employees. ... Distribution Channels and Suppliers. ... Level of Competition. ... Availability of Investors. ... Media and the General Public.
What are micro and macro factors in marketing?
Meaning. Micro environment is defined as the nearby environment, under which the firm operates. Macro environment refers to the general environment, that can affect the working of all business enterprises. Elements. COSMIC, i.e. Competitors, Organization itself, Suppliers, Market, Intermediaries and Customers.
What are some micro factors?
Micro environmental factors are specific to a company and can influence the operation of a company and management's ability to meet the goals of the business. Examples of these factors include the company's suppliers, resellers, customers, and competition.
What is a macro factor in marketing?
Macro Environment is the external environment factors greatly influenced the business success, strategies and decision making. These factors are uncountable by the business organizations. The wider and broader set of economical conditions is known as macro environment.
Which of the following is not a microenvironmental factor?
The correct answer is d. financial capabilities because mostly, in the marketing environment, micro factors do not affect all the businesses in the industry in the same manner. The reason is that every business is different in size, capacity, financial resources, human resources and overall strategies.
What does Macroenvironment of marketing consists of?
In the field of marketing, the macro environment is the set of external factors and forces, not controlled by the company, that influence its development. It mainly includes demographic, economic, cultural, technological, legal or political elements.
What is microenvironment in business?
the factors or elements in a firm's immediate environment which affect its performance and decision-making; these elements include the firm's suppliers, competitors, marketing intermediaries, customers and publics.
How the micro environment factors influence marketing decisions?
Marketing intermediaries is that element of micro environment which also plays a vital role for a company to accomplish its marketing strategy. These are the firms are peoples that help the company to promote, sell and distribute its goods to final customers, which affect the business in term of bring cash.
What are the 6 macro environments?
The Macro Environment consists of six different forces. These are: Demographic, Economic, Political, Ecological, Socio-Cultural, and Technological forces. This can easily be remembered: the DESTEP model, also called DEPEST, helps to remember the different factors of the Macro Environment.
What are the 5 macro environmental factors?
The factors that make up the macro-environment are economic factors, demographic forces, technological factors, natural and physical forces, political and legal forces, and social and cultural forces.
What are the 5 components of macro environment?
Macro Environment1] Socio-Cultural Environment. ... Browse more Topics under Introduction To Business Environment. ... 2] Technological Environment. ... 3] Economic Conditions of the Market. ... 4] Ecology and Physical Environment. ... 5] Political and Legal Factors.
What are the 5 components of micro environment?
Answer: The important elements of the micro environment of an organization are:Customers and Consumers.Competitors.Organization.Market.Suppliers.Intermediaries.
Why is SWOT analysis important?
The SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) is useful both for understanding the micro and the macro factors. The former two are internal and affect the very business, while the latter are external and not under the organization’s control.
What is macro environment?
The macro-environment is more general - it is the environment in the economy itself. It has an effect on how all business groups operate, perform, make decisions, and form strategies simultaneously. It is quite dynamic, which means that a business has to constantly track its changes.
What are the factors that make up the macro-environment?
The factors that make up the macro-environment are economic factors, demographic forces, technological factors, natural and physical forces, political and legal forces, and social and cultural forces.
What are the natural and physical forces that affect business?
Natural and physical forces. Every business must also take into account the very planet and its resources. There are those that can be renewed, such as forests and agricultural products, and those that cannot, such as coal, minerals, oil, and the like. Both are strongly related to production.
What happens if you sell your product through a third party reseller?
If let’s say, a certain retail seller has a strong reputation, it will pass on to your product.
What is the business environment?
In other words, an organization as such can never exist and operate “in a vacuum”. 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.
What is your competition on the market?
Logically, every business that sells the same or a similar kind of product as you do is your competition on the market. So, their sale and marketing tactics matter to you a lot. You need to answer various questions, such as how their product and its price affects yours and how you can make use of that in order to gain an edge over them.
Why do micro factors not affect all businesses?
The reason is that every business is different in size, capacity, financial resources, human resources and overall strategies. For example, competitors affect the business decision-making process.
How does a supplier affect the marketing mix strategy of an organization?
If the supplier increases the prices of raw material they provide to the company, it will impact the marketing mix strategy of an organization, which will end-up with the increase in price of finished goods. Therefore keeping a strong relation with supplier can help a company in getting an edge over competitors.
What is a one off story?
A story that has been done by the media on a one-off , could impact on a firms’ daily operations thu s becoming that firms micro environment. However, a firm could be influenced to have long term operational decisions in a bid to avoid negative media stories.
Why is it important for top management to keep strong and better relations with shareholders?
Example. The shareholders’ demand for raise in profit can influence the business success in longer-run. Therefore, it is important for top management to keep strong and better relations with shareholders to have a successful business on long-term basis.
How do actions of suppliers affect business strategy?
Actions of a supplier can influence the business strategy, as they provide the materials for production. For instance, if their services will not reasonable and timely that will affect the production time and the sales due to delayed process of production.
How does media affect an organization?
Organization should manage to keep a good relationship with media as whatever it shows will directly influence the organization business. If media will show positive aspect, this will increase the business of organization and vice-versa.
How can skilled employees help an organization?
This begins with the hiring process and continues through regular and timely training and development sessions. The training and development process helps the employees to work effectively and efficiently in order to achieve the organizational goals, specifically in service sector.
What Is The micro-environment?
What Is The Macro-Environment?
- The macro-environment is more general - it is the environment in the economy itself. It has an effect on how all business groups operate, perform, make decisions, and form strategiessimultaneously. It is quite dynamic, which means that a business has to constantly track its changes. It consists of external factors that the company itself doesn’t control but is ce…
Micro-Environment Factors
- Customers
The kind of customer base that your company attracts, as well as the reasoning behind purchasing your product, are going to highly affect the way you create marketing campaigns. Your customers can be B2C, B2B, international, local, and so on. Important factors related to custome… - Suppliers
If a supplier of a particular product is the largest, or even the only one, they are certainly going to have a big influence on how successful your business is. The suppliers are extremely important factors as: 1. Key link in the value delivery process 2. Insurance that your business has the nece…
Macro-Environment Factors
- Economic factors
Basically, the very environment of the economy can have an effect on two essential aspects – your company’s levels of production and the decision-making process of your customers. Some examples of economic factors affecting business: 1. Interest rates 2. Exchange rates 3. Recessi… - Demographic forces
Each and every chunk of the market is affected by universal demographic forces. These are age, education level, cultural characteristics, country and region, lifestyle, and so on. The crucial variables include: 1. How income variables influence business 2. Age variables that affect busin…
SWOT Analysis
- The SWOT analysis(Strengths, Weaknesses, Opportunities, and Threats) is useful both for understanding the micro and the macro factors. The former two are internal and affect the very business, while the latter are external and not under the organization’s control. In terms of strengths, you should ask yourself what you are good at, what value you bring, what kind of diffe…
in Summation
- Both micro and macro factors have a strong influence on how successful your business is. Every decision that you make needs to take these two environments into consideration. Your marketing strategies have to be based on them as well, if you truly want them to be lucrative, and retain a reputable position on the market.
Customers
Competitors
- The competitors of an organization can have a direct impact on business strategies. The organization must know how to do a competitive analysis of competitors and have a competitive advantage. An organization must understand, what value added services their competitor is providing or the unique selling point of their competitors. How they can differentiate from their c…
Employees
- Skilled employees can help an organization to achieve organizational goals and objectives. As skilled and experienced employees has expertise to support organization to get success. This begins with the hiring process and continues through regular and timely training and development sessions. The training and development process helps the employees to work effectively and eff…
Suppliers
- Actions of a supplier can influence the business strategy, as they provide the materials for production. For instance, if their services will not reasonable and timely that will affect the production time and the sales due to delayed process of production. Example If the supplier increases the prices of raw material they provide to the company, it ...
Shareholders
- Shareholders of an organization have an influence as the company want investors to increase for this they might make a decision to increase money by buoyant on stock market, i.e. shifting to public from private ownership. This change will pressure the company as the public shareholders seek returns on their investment. Example The shareholders’ demand for raise in profit can influ…
Media and Social Media
- The way media acts can make or break an organization. Organization should manage to keep a good relationship with media as whatever it shows will directly influence the organization business. If media will show positive aspect, this will increase the business of organization and vice-versa. In order to maintain good relations with media some organization do maintain a publi…