A company’s marketing environment consists of all the factors and forces outside marketing that affect management’s ability to develop and maintain successful transactions with its target customers – Kotler and Armstrong
Marketing Environment involves forces that directly or indirectly influence an organisation’s capability to market its product successfully.
Factors affecting Marketing Environment
Internal Marketing Environment or Controllable Factors
Internal Environment is generally audited by applying 5 Ms i.e.
The internal marketing environment consists of all factors that are internal to the organisation like:
Company`s mission, vision and business objectives
Company image and Goodwill
Managerial Skills and Abilities
Structure and Processes
Finance and Sales force
Production and Research
Internal Processes and Procedures
Allocation of responsibilities
Attitude of stakeholders
Human Resources – HR department, Operations department, Accounting and Finance departments, Research and Design
External Marketing Environment or Uncontrollable Factors
The External Environment must be monitored continuously to review the marketing strategy accordingly. It consists of micro and macro environment.
Micro Environment – It refers to the company’s internal and immediate environmental
Macro Environment – It refers to the societal forces such as political, legal, cultural, natural and economic forces present in the environment.
Micro Environment – It involves all forces which directly affect the organisation.
Public – Any group with potential interest in organisational working
Financiers – Founders, Stakeholders, Investors, Partners, Banks
Market intermediaries – Suppliers and Wholesalers
Customers – Individual, industrial, re-seller, retail
Suppliers – Government, Non-profit, International
Competitors – Number of firms, Size of market, Nature of product, Market entry and exit barriers, Differential advantage
Macro Environment – It involves all forces which affect indirectly like:
Age, sex, location
Birth ratio etc.
Government procedures and policies
Government rules and regulations
Monetary and Fiscal policy
Central and State Regulations
Monopoly and Restrictive Trade Practices
Quota and Taxes
Nature of trade cycles
Gross domestic product
Growth in real income
Income distribution pattern
Values, beliefs and attitudes
Friends, family, reference group, peers
Availability of technology
Availability of raw material
Topography of land
Natural and ecological resources