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MARKETING

Marketing Environment

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Marketing environment

The overall marketing environment consists of The task environment includes the immediate actors involved

in producing, distributing, and promoting the offering, includingthe company, suppliers, distributors, dealers, and the targetcustomers.

The broad environment consists of six components:demographic environment, economic environment, natural environment, technological environment, political-legal environment, and social-cultural environment.

These environments contain forces that can have a majorimpact on the actors in the task environment, which is why smartmarketers track environmental trends and changes closely.

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The intra-firm environment

The marketing function often has to compete with other management functionsto secure that share of the firms overall budget.

Marketing needs a revenue budget to spend on advertising, exhibitions, directmail, sales personnel, marketing research and other activities that form part of the process of winning orders.

It also needs a capital budget in order to purchase equipment like computers.

Other management departments such as production, finance and humanresource management feel that they too provide important services and hencedeserve an equal share of the companys budget.

Hence, marketing department not only has to compete with other

departments for financial resources, but it has to work in co-operation with theseother functions.

Marketing managers make decisions that directly affect other functional areas of the firm. Likewise, decisions made elsewhere within the organization affectmarketings ability to carry out its job effectively.

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The Macro-environment

The term macro - environment denotes all forces andagencies external to the marketing firm itself.

Some of these forces and agencies will be closer to theoperation of the firm than others, for example, a companyssuppliers, agents, distributors and other distributiveintermediaries and competing firms.

These closer external factors are collectively referred to asthe firms proximate macro-environment to distinguishthem from the wider external forces found, for example, inthe legal, cultural, economic and technological subenvironments. These sub-environments can each have asignificant effect upon the marketing firm.

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Macro-environmental factor

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The wider macro-environment

wider macro-environment may not be as immediate to themarketing firms day -to-day operations, but they are just asimportant. Factors making up these wider macro-environmentalforces fall into four groups:

1. political (and legal) factors,2. economic factors,3. social (and cultural) factors,4. technological factors.

A change in the supplier or competitive environment may, forexample, have its basic cause in wider changes taking place inthe technological or political arenas. The two parts of the overallmacro-environment (the proximate and wider macro-

environments) are therefore closely related.

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The