Do you know what is marketing environment and its factors? AAMcourses is here to help you with it. Every great organization looks outside its premises to take advantage of emerging opportunities. It also helps the organization to monitor and minimize the potential threat to the business.
The marketing environment consists of several factors that affect an organization. It consists of factors affecting the organization’s ability to deliver its product and services to customers.
Suppose an organization can have the best resources. It has the best technology, the best workforce, the best suppliers, and so on. But it could still fail. All because environmental factors acted against the organization.
In the same way, a moderate-level company can become a business tycoon. And the only reason for it is that external factors favored the organization. It is extremely important to understand and analyze the marketing environment. It helps the organization to be prepared for threats. It helps to take advantage of newly raised opportunities.
Let’s jump deeper into the concept of the marketing environment. Let’s start with its meaning –
What is Marketing Environment?
A marketing environment is a combination of internal and external forces that influence an organization’s ability to deliver its products and services to customers.
Factors Affecting the Marketing Environment
Internal Factors
Internal factors are the ones that can come under the organization’s control. These factors are monitored and guided by the organization. As the organization controls them, they are easy to shape into something that can benefit the organization.
Internal factors refer to the organization’s internal resources. It includes employees, products, services, assets, policies, etc. These factors come under management and are, therefore, manageable.
External Factors
In contrast to internal factors, external factors are unpredictable. External factors refer to factors that are outside of the organization. As they exist outside the organization, the organization has no power over them. Usually, these factors are uncontrollable.
External factors are further classified into micro and macro environmental factors.
Microenvironmental Factors
Microenvironmental factors refer to forces outside the organization but are linked to the organization. It includes suppliers, shareholders, vendors, and competition. As these factors are linked to organizational operations, they have a certain influence on the business. These factors are somewhat controllable.
Macroenvironmental Factors
Macro environmental factors exist outside the organization. The business does not influence these factors. These factors are governed by other powers beyond the organization’s capabilities. The acronym for these factors is PESTEL. These factors are mentioned below.
Political Factors – The country’s political environment can be a strong factor influencing a business. A country’s political stability, structure, and government intervention in business can affect a business.
Economic Factors – The economic forces of the nation can have a huge impact on the demand and supply of the business. Organizations need to monitor economic forces to be prepared. Economic forces include income, inflation, recession, interest, and exchange rates.
Socio-Cultural Factors – Social factors include people’s attitudes, values, and lifestyles. Social factors influence a person’s choice of products and prices.
Technological Forces – New technologies can be helpful to counter inflation and recession. New machines can be cost-effective. New softwares increase the organization’s efficiency. Awareness of these factors helps the organization keep up with trends and be more effective.
Environmental Factors – These refer to factors such as climate, humidity, availability of resources, landscape, etc.
Legal Factors – a country’s legal and regulatory factors are important for any business. The organizations need the country’s policy to be supportive and business-friendly. It not only helps existing businesses, but it also attracts foreign companies.
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FAQs
What are the marketing environment and examples?
A marketing environment is a combination of internal and external forces. It influences an organization’s ability to deliver its products and services to customers.
An organization promoting intrapreneurship will have a strong and motivated workforce. The above sentence is an example of managing internal factors of the marketing environment.
What are the 6 marketing environments?
The marketing environment consists of 6 factors. They are –
Political factors
Economic factors
Socio-Cultural factors
Technological factors
Environmental factors
Legal factors
What is marketing environment analysis?
Marketing environment analysis refers to an analytical method. This method helps to understand internal and external factors affecting the business.
Closing Statement
Every business’s marketing environment can help it take advantage of emerging opportunities. It helps businesses to perform extraordinarily even in new and unknown circumstances. As a businessman and a manager, you should know what factors will affect your business. You should know how to take advantage of different factors.
The microenvironment of the business consists of factors that affect its ability to operate effectively in its chosen market. The macro-environmental factors of the business affect the company and the industry. It also affects the actors’ micro-environmental factors.
I hope this article about the marketing environment and its effect on business is helpful. If you have any doubts or suggestions, comment in the comment box.