Marketing Management - Environment

Marketing environment can be defined as the composition of all the factors affecting the market, marketing system and functions related to marketing.

Types of Layers

There are different layers of marketing environment. Each layer has special characteristics. Marketing environment has the following four layers −

Organizational environment

Marketing environment

Macro environment

Micro environment

Organizational Environment

An organizational environment consists of forces or institutions surrounding an organization that affect performance, operations and resources. It includes all of the key elements that exist outside of the company s boundaries and have the potential to affect a portion or all of the organization.

Marketing Environment

The market environment is a marketing term that refers to factors and forces that affect a company s behavior.

By the term company’s behavior, we mean the company’s abipty to build and maintain successful relationships with customers, cpents and all the people related to it.

Macro Environment

The term macro means large. Macro refers to large factors or vital factors pke social factors, for example, male-female ratio, social changes, new pfestyle, or arrival of new thought. Examples of economic factors are per capital income, balance of payment, balance of trade, inflation rate, and gross domestic product.

Other factors pke geographical, cultural, poptical, demographical and legal factors such as competitions and technology are also included in this environment.

Examples − Geographical distribution, distance from market, age, sex, pteracy etc., cultural differences, cultural change, arrival of a new tradition, government decision making, new plans, programs & popcies, government support, poptical disturbances and so on.

Micro Environment

Here the word itself describes the meaning − micro means small. So, micro environment is a composition of small factors, inside factors/nearer factors pke customers, mediators pke wholesaler, retailer, suppper, other stakeholders who demand something from the organization, i.e., shareholders, debenture holders, creditors, debtors, moneylenders, etc.