Micro and macro market enviroment Essay

In run to correctly identify opportunities and monitor lizard threats, the smart set moldiness begin with athorough understanding of the market purlieu in which the firm operates. The tradeenvironment consists of wholly the actors and forces outside merchandising that affect the marketingman seasonments exponent to develop and obtain successful relationships with its target customers.Though these factors and forces may vary depending on the specific follow and industrialgroup, they shtup gener tout ensemble(prenominal)y be divided into broad micro environmental and large environmental fortunes.For most companies, the micro environmental components ar the companionship,suppliers, marketing route firms (intermediaries), customer markets, competitors, and publicswhich combine to necessitate up the partnerships honour rake system. The macro environmentalcomponents atomic number 18 thought to be demographic, sparing, internal, technological, political, and ethni c forces. The wise marketing manager knows that he or she goatnot always affectenvironmental forces. However, smart managers can transport away a proactive, rather than reactive,approach to the marketing environment.As marketing management collects and processes selective information on these environments, they must(prenominal)(prenominal) be ever vigilant in their efforts to contribute what they learn to developing opportunities and dealing withthreats. Studies meet shown that excellent companies not sole(prenominal) decl be a keen sense of customer butan appreciation of the environmental forces swirling around them.By constantly looking at thedynamic changes that argon occurring in the aforementioned environments, companies ar better prepargond to adapt to change, prepare long- double strategy, meet the needs of todays andtomorrows customers, and compete with the yearning competition present in the globalmarketplace. in all firms are furtherd to come after an environ mental management perspective in thenew millennium.A fraternitys marketing environmentconsists of the actors and forces outside marketing thataffect marketing managements king to develop and maintain successful relationships with itstarget customers.1). Being successful means creation able to adapt the marketing mix to edits and changes thisenvironment.2). Changes in themarketing environment are often quick and unpredictable.3). The marketing environment offers both opportunities and threats.4). The community must use its marketing research and marketing intelligence systems to monitor the changing environment.5). Systematic environmental scanning serves marketers to revise and adapt marketing strategiesto meet new repugns and opportunities in the marketplace. The marketing environment ismade up of a1. Micro environmental2. Macro-environment1. Micro surroundingsalThe microenvironment consists of five components. The first is the faces internalenvironmentits several departm ents and management levelsas it affects marketingmanagements decision making. The second component includes the marketing channel firmsthat cooperate to create take account the suppliers and marketing intermediaries (middlemen, physical dispersal firms, marketing-service agencies, pecuniary intermediaries). The third componentconsists of the five types of markets in which the organization can sell the consumer, producer,reseller, government, and multinational markets. The fourth component consists of thecompetitors facing the organization.The fifth component consists of all the publics that shake anactual or potential interest in or impact on the organizations ability to achieve its objectivesfinancial, media, government, citizen action, and local, general, and internal publics. So themicroenvironment consists of sextuplet forces close to the company that affect its ability to serve itscustomersa. The company itself (including departments). b. Suppliers.c. selling channel firm s (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 level 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 amenable for setting the companys mission, objectives, broadstrategies, and policies.2). selling managers must make decisionswithin the parameters established by topmanagement.3). Marketing managers must too institute closely with other company departments.Areas such asfinance, R & D, purchasing, manufacturing, and accounting all produce better results whenaligned by common objectives and goals.4). All departments must think consumer if the firm is to be successful. The goal is to providesuperior customer value and satisfaction. b. SuppliersSuppliers are firms and individuals that 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). one consideration is to watch supplement availability (such as supply shortages).2). Another point of concern is the monitoring of price trends of key inputs. wage hike supply costsmust be carefully monitored. c. Marketing IntermediariesMarketing intermediaries are firms that supporter the company to promote, sell, and distribute itsgoods to final examination 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 much 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 st ock and move goods from their points of origin to their destinations. Examples would be warehouses (that retention 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. pecuniary 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 each market has its own specialcharacteristics. These markets unremarkably include1).Consumer markets(individuals and households that buy goods and services for individual(prenominal)consumption).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 produ ce publicservices or transfer them to those that need them).5). International markets(buyers of all types in foreign countries)e. CompetitorsEvery company faces a all-embracing 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 better for all companies. f. PublicsApublicis any group that has an actual or potential interest in or impact on an organizationsability to achieve its objectives. A company should prepare a marketing final cause for all of their major publics as well as their customer markets. Generally, publics can be identified as creation1). Financial publicsinfluence the companys ability to obtain 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). topical anesthetic publics includes neighborhood residents and community organizations.6). General publicsa company must be concerned about the general publics attitude toward its products and services.7). intimate 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. sparing.c. Natural.d. Technological.e. Political.f. Cultural.a. DemographicEnvironment Demography is the study of military man populations in terms of size, density, location, age, sex, race,occupation, and other statistics. It is of major interest to marketers because it involves lot and multitude make up markets. Demographic trends are constantly changing. Some more than interestingones are.1). The worlds population (though not all countries) rate is growth at an explosive rate that entrustsoon 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 change magnitude attention from global marketers.2). The most important trend is the changing age structure of the population. The population isaging because of a slowdown in the birth rate (in this country) and life expectancy is increasing.The baby boomers following military man 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 overleap obvious distinguishingcharacteristics. They are a very cynical group because of all the di fficulties that have surroundedand impacted their group.b). Echo boomers(baby boomlets) are the large growing befool 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 mesh applied science(sometimes called Net-Gens).c). Generational marketing is possible, however, cautiousness must be used to avoid generationalalienation. Many in the new-fangled family now telecommutework at home or in a remote officeand conduct their businessusing fax, cell phones, modem, or the profits 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 variety show of the population. Diversit y 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 change 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(ip) economic trends in the United States include1). Personal consumption (along with personal debt) has gone up (1980s) and the early 1990s 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 bear 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, s pending patterns show that food, housing, and carry-over stillaccount for the majority of consumer dollars. It is also of note that distribution of income hascreated a ii-tiered market where thither 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 taintis a worldwide problem. Industrial damage to the environment is very serious. Far-sightedcompani es are becoming environmentally friendly and are producing environmentally safe andrecyclable 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 intervention 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. sooner of opposing regulation, marketers should help develop solutions to thematerial and energy problems facing the world.4).Environmentally sustainable strategies.The supposed green movement has encouraged or even demanded that firms produce strategiesthat are not only environmentally friendly but are also environmentally proactive. Firms are beginning to recognize the link between a healthy economy and a healthy environment.d. Technological EnvironmentThe technological environmentincludes forc es that create new technologies, creating new product and market opportunities. 1). applied science is perhaps the most dramatic force shaping our destiny 2). rising technologies create new markets and opportunities.3). The following trends are worth watchinga). rapid 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 efficacy harm users or arouse opposition. e. Political EnvironmentThe political environment includes laws, government agencies, and pressure groups thatinfluence and . limit various organizations and individuals in a habituated society. Various forms of legislating regulate business.1). Governments developpublic policy to puff commercesets of laws and regulations limiting business for the good of society 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 manage rs to look beyond regulation and do the rightthing. b). Recent scandals have increased concern about ethics and social responsibility. c). The boom in e-commerce and Internet marketing has created a new set of social and ethicalissues. Concerns are Privacy, Security, approach shot 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. Certain cultural characteristics can affectmarketing decision-making. Among the most dynamic cultural characteristics are 1). Persistence of cultural values. Peoples 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 outspoken tochange.2). Shifts in secondary cultural values. Since secondary cultural values and beliefs are open toch ange, marketers want to spot them and be able to capitalize on the change potential. Societysmajor cultural views are expressed ina).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 leisure 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).Peop les view of nature.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 judge 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.