micro environment micro environment refers to the


Micro environment: Micro environment refers to the company's immediate environment, those environment factors that are in its proximity. These factors influence the company's non capability to produce and serve the market. These are also the groups of the people who affect the company's prospects directly. These factors are:

1.      Organizational internal environment: the internal of a company also affects the marketing activities and abilities of a firm. In any organizational there are different department like.

1.      Marketing

2.      Finance

3.      Production

4.      Personnel

5.      R & D

These degrees of the coordination between these departments actually decide the fate of any business organizational since customer satisfaction does not soap lily depend upon the marketing. But also all deportment's coordinates effort in its direction. For instance, finance department wants a tight grip on the credit control, whereas marketers want liberal and flexible credit policies for their customers. Production department wants to happen in their products, marketer wants variety, models and the flexible products as and required for enhancing customer base and satisfaction. Hence we can see that for any organization coordinated marketing efforts are vital for the success. Further no marketer can afford to ignore the environmental variables, since they put constants for the marketers and marketing strategies should accommodate environmental consideration.

Suppliers: the suppliers to a firm c an also alter its competitive position and marketing o capabilities. These are raw material suppliers' energy suppliers of labour and capital. According to Michael porter them, relationship between suppliers and the firm epitomizes a power equation between them. This equation is based on the based on the industry conditions and the extent to which each of them is dependent on the other. the bargaining power of the supplier gets maximized in the following situations:

1.      The seller firm is a monopoly or an oligopoly firm.

2.      The supplier is not obliged to contend with other substitute products for sale to the buyer group.

3.      The buyer is not an important customer.

4.      The supplier's product is an important input to the buyer's business and finished the product.

5.      The supplier's products are differentiated or it has built up the switching costs.

6.      The supplier poses at real threat of forward integration.

2.      Market intermediaries: normally, every producer has to appoint a number of intermediaries in assisting him in promoting. Selling and distributing the goods and the services to ultimate consumers. These intermediaries may be individuals or business firms. These intermediaries are middle man (wholesales, retailers, agent's etc.) distributing agency market service agencies and the financial institutions. In appointing any kind or intermediary the company should consider the following points:

1.      Middle man may overcome the discrepancies, if any in qualities, place time, assortment and go for processional that would other exist in a given condition.

2.      It is better to appoint an established channel of distribution rather than creating one and go for examination.

3.      However, it is not easy to select and work with the middle man. The marketing manager must ensure an effective management and satisfaction of the marketing channels to enlist their long lasting support on better terms.

4.      The marketing manager should constantly review the performance of different middle man and other select assisting people periodically. An intermediary may be replaced, if it has not been doing at the expected level.

5.      The marketing manager should select the most cost effective mode of the transformation and balancing the considerations of the cost delivery, speed and safety.

6.      The marketing management should also manage the funds effectively and if it feels any storage, it should weight different sources in the light of their credit costs and then develop its plans accordingly.

3.      Customers: the customers of a company may be of five kinds:

1.      Ultimate consumers: they may be individuals and house holders.

2.      Industrial consumers: industrial consumers are organizations which buy goods and services for producing other goods for the purpose of other earning profits of fulfilling other objectives.

3.      Resellers: these are intermediaries who purchase goods with a view to resell them at a profit. They may be wholesalers, retailers, distributions etc.

4.      Government and other non profit customers: these customers purchase goods and services to those for whom they are produced, for their consumption in most of the cases.

5.      International customers: these are individuals and organizations of other countries who buy goods and services either for consumption or for industrial use. Such buyers may be consumers, producers, resellers and governments.

6.      It must not be forgotten that the satisfaction of customer is the main motto of every business firm.

7.      The population also contains the prospective consumers of the company's products and the company has to identify them, which is not easy. Goodwill built up by the company sometimes influences the consumers to become the customer of the company.

4.      Competitions: competitions are those who sell the goods and the service of the same and similar description, in the same market. A part from competition on price factor, there are other forms of competition like product differential. It is therefore, necessary to build an efficient system of the marketing. This will create confidence and better results. For this purpose first of all, competitions are to be identified and closely monitored. The competitive environment consists of certain basic things which every marketing manager must take note of Philip Kotler is of the opinion that, "the best way for a company to grasp the full range of its competition is to take the view point of a buyer. What does a buyer think about that which eventually leads to purchasing something "Kotler has also explained for the basic types of competition (desire, generic, and form and brand competition).

5.      Public: it is the duty of the company to satisfy the people at large along with its competitions and the consumers. It is necessary for further stay and growth. The actions of the company do influence the other group forming the general public for the company. A public is defined as, "any group that has an actual or potential interest in or impact on a company's ability to achieve its objectives." Public relations are certainly a broad ymarketing operation which must be fully taken care of. The company expects some reactions from public as well. Goodwill, favourable reactions, donation of the time and money and hidden potential future buyers always are a few of the responses which a company expects from the public. To build such goodwill and to seek favourable response, it is very necessary to satisfy the public as well.

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