Marketing Environment

Blog Sep 18, 2020

We all know that without marketing no product or service can enter the market or even survive the competition. It is an extremely important factor to keep in mind before launching the product. Now the question is what is the marketing and marketing environment.?

Marketing — it is an activity of promoting and selling a product or a service through different mediums.

Marketing environment — every day there are new products and services introduced that lead to the obsolescence of previous products. Many of these are brought up to create something new to satisfy the audience. Some changes occur slowly while some can affect the market much more quickly. Some are within the company’s control whereas some are beyond it.

There are usually two types of marketing environment — Macro and Micro.

  • Macro-environment: it is very general and is in the economy itself. It has an effect on how all the business groups operate, perform, make decisions, and form strategies. It consists of external factors that the company itself doesn’t control but certainly is affected by.
  1. Economic — the economy can have an effect on two essential aspects — the company’s level of production and the decision-making process of the customer. Example — taxes, demand/supply, rescission
  2. Demographic — Each and every chunk of the market is affected, these are the age, education level, cultural characteristics, country, and region lifestyle.
  3. Technical — These factors are related to skills and ability that are implemented into production, as well as the material and technology. They are essentials. Example — Automation, 3D technology.
  4. Natural and physical — every business must also take into account the very planet and its resources. Some can be renewed like forests and agricultural products and some can not be such as coal, oil etc. Example — Pollution, Weather, etc.
  5. Political and legal — The market develops according to the political environment in various areas. Example — Copyright law, employment law, etc
  6. Social and cultural — The product should have a strong impact on society. Production needs to eliminate every practice that is hazardous.
  • Micro-environment-: these are basically environmental factors that have a direct impact on the business. They can directly affect business processes. These are factors that affect particularly daily proceedings and general performances.
  1. Customers — the kind of customer base that your company, as well as the reasons behind your product, are going to highly affect the way you create marketing campaigns.

Important factors — stability of demand, relative profitability.

2. Suppliers — The supplier has a big influence on how successful the business is. The supply chain is very important.

Important factors- a key link in the value delivery process, insurance.

3. Resellers — if you decide to sell your product via a third party such as wholesalers and retailers, then the success of your marketing is going to be highly dependent on them.

Important factors — promotion, sale, distribution, marketing.

4. Competitors — Logically every business that sells the same or a similar kind of product as you do is your competition on the market.

Important factors — Desire competition, brand competition.

5. The general public — Of course, every business organization has in its best interest to appeal to the general public. Every step you take has to be viewed from their perspective as well.

Important factors — public opinions, media.

Tejaswini Singh

Tejaswini is a design student and passionate Product Designer who loves designing delightful experiences.