The Marketing Environment


No company and operates in a vacuum, but as part and parcel of the environment in which it finds itself. Efficient and effective marketing strategy is a function of the ability of the sales manager is to understand the environment in which the business operates.

Marketing environment consists of a set of elements or forces that operate or affect the performance of the company in its chosen target audience

Jain (1981: 69). defined market environment to include all the factors that may affect the organization, directly or indirectly, in any significant way. Marketing and environmental factors affect the organization of the input and organizations also have an impact on the environment by manufacturing. The relationship between the organization and the market environment is often referred to as “inseparable” organization and the environment are constantly in a state :. Give and take “or homeostasis

Marketing environment consist of those forces or. Factor affecting the company’s ability to operate efficiently in the chosen target market

Marketing environment is divided into two The elements are part of

Internal environment :. internal environment is concerned. with controllable parameters controllable parameters are classified into two groups, they are, policy variables and unmarketable variables external environment, the external environment is concerned uncontrollable variables These variables are called uncontrollable the sales manager can not directly control any .. the elements. The sales manager is left with the possibility to adapt to the environment by encouraging observation, analysis and forecasting of these environmental factors. The external environment can further be divided into two components, micro environment economic environment

Micro environment :.

Items covered by micro surroundings consist of forces or factors in the company’s immediate environment that affect the company’s ability to perform effectively in the market. These forces are suppliers, distributors, customers and competitors. Let us discuss each parameter in detail

Suppliers :.

Suppliers are customers of the company who provide goods and services to other organizations or companies for resale to the production of other goods. The behavior of certain wickedness in suppliers can affect the performance purchasing agency positive or negative. The important points here are the number of suppliers and volume suppliers to the industry. Evaluation of suppliers will allow us to assess their strength and bargaining power, the inventory of the industry as a whole. The answers to the issues in question have the potential to affect the ability of companies in the industry to effectively carry Need-satisfying products and / or services. The trend today is that buyers try to convince the supplier to provide exactly what businesses want. This process is known as “reverse marketing”

Customers :.

customers are those who buy products and / or services produced by the company. The acquisition chain, different people play a significant role before making a purchase decision. The various effects must be understood. The client can be a consumer of products he / she is user. The decisive factor here is that the needs and wants of consumers are not fixed. They are fast changing. Changes in consumer preferences create opportunities and threats in the market. The changes called for marshaling a special policy to either fit into a window of opportunity or survive the threats in the market. Good knowledge of consumer behavior will facilitate the design and manufacture of products and services that customers need and want, and not what they are able to produce

Competitor :.

A competitor is a company operating in the same industry or market to another company. The consideration here is that Firm A produces instead to her company B (industrial approach) or company A and company B seeks to satisfy the same customer need (market penetration.