Marketing micro environment refers to the environment, which are directly related to business and may impact its day to day activities.
The micro environment of a business organization contains five components. The organizational internal environment is the first component which consists of many managerial levels and departments, which influence the decision making of marketing management.
The marketing channel businesses are include in the second component that produce value through cooperation like marketing intermediaries, suppliers etc.
Five kinds of marketing are included in the third component in which the business organization can sell like producer, consumer, government, reseller and international markets.
See Also: Factors of Macro Environment
The competitors that a business organization faces are included in the fourth component. All the public that can have potential or actual interest or influence the capacity of business organization to accomplish its goals are included in the fifth component like government, media, and financial, internal, local and general public.
Factors of Micro Environment
So following are the six factors of micro environment, which influences the capacity of business organization to serve its customers.
- The Company Itself
- Suppliers
- Marketing Channel Organizations (Intermediaries)
- Customers Markets
- Competitors
- Publics
These are discussed one by one.
(A)- The Company
The first factor that plays an important role in the microenvironment is the company itself. This might be viewed the internal environment.
- The organization’s mission, goals, policies and broad strategies are established by the top management of the business organization.
- Top management set the parameters within which the marketing managers should make decisions.
- The marketing managers should also closely operate with other departments of the business organization. Areas like purchasing, manufacturing, finance, R & D and accounting all generate fruitful consequences when coordinated with the goals& objectives of the organization.
- It the organizations wants to be successful than it must be customer oriented. The objectives to deliver more customer value and more customer satisfaction
(B) – Suppliers
The resources required by the business organization & competitors of business organization, to generate goods or services, are provided by the individuals and firms which are known as suppliers. These suppliers play an important role in entire “value delivery system” to the customers.
- Viewing availability of supply is one consideration.
- Supervising of price trends of key inputs is another consideration.
- Increasing costs of supply should properly supervise.
(C) – Marketing Channels
The firms which assist the business organization to promote, sell and distribute its products to final customers are referred to as marketing intermediaries.
- Resellers
01 –The firms that support the business organization to search customers or sell them products are considered as resellers.
02 – Resellers contain retailers and wholesalers that purchase and resale the goods.
03 – The functions performed by resellers are cheaper as compared to functions performed by the business itself.
However, it is difficult to search & work with resellers because of the reason that many of the resellers have potential to use and demand.
- Physical Distribution Firms
The activities of stocking and moving the goods from their point of production to their final utilization are carried out by the business organization with the help of physical distribution firms. Warehouses are the example of these physical distribution firms.
- Marketing Service Agencies
Marketing service agencies include advertising agencies, marketing research firms, and media firms etc. that assist in accomplishing targets of the business organization and promote the products of the business organization.
- Financial Intermediaries
Financial intermediaries include credit companies, banks and insurance companies etc. that assist the business organization in its financial transactions and insurance against risks.
(D) – Customers Markets
Since every market has its own special features so the business should study its customer markets properly. These markets contains the following
- Consumer Markets
It contains households and individuals that purchases goods and services for personal usage.
- Business Markets
Business markets include purchasers who purchase goods or services for usage in their production process or for further processing.
- Reseller Markets
Reseller markets include purchasers which purchases goods or services in order to resell them.
- Government Markets
Government markets contain agencies that purchases goods and services in order to deliver them to those who require them or to produce public services.
- International Markets
International markets include purchasers of all kinds in foreign countries.
(E) – Competitors
Every business organization deals with a wide variety of competitors. Strategic advantage should be secured by the business organization over its competitors by positioning their products successfully in the market place. There is no one competitive strategy that suits to all business organizations.
See Also: 4PS of the Marketing Mix
(F) – Publics
Any group that has potential or actual interest in or effect the capacity of business to accomplish its goals is regarded as public.
A marketing plan should be prepared by the business organization for all of its main public and customer markets. The publics can be identified in the following forms
- Financial Publics
Financial publics affect the capacity of business organization to get funds.
- Media Publics
Features, news and editorial opinion are carried out by media publics.
- Government Publics
Developments are taken into account by the government publics.
- Citizen Action Publics
Consumer organizations are mostly enquired about decisions of the business organization.
- Local Publics
Community organizations and neighborhood residents are included in local publics.
- General Publics
The attitude of general public should be considered by the business organization regarding its products or services.
- Internal Publics
Internal publics include managers, workers, board of directors and volunteers.
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