Write an essay about micro environment
Micro and macro market enviroment Essay Custom Student Mr. Teacher ENG 21 April Micro and macro market enviroment In order to correctly identify opportunities and monitor threats, the company must begin with athorough understanding of the marketing environment in which the firm operates. Though these factors and forces may vary depending on the specific company and industrialgroup, they can generally be divided into broad micro environmental and macro environmentalcomponents. For most companies, the micro environmental components are: The macro environmentalcomponents are thought to be: The wise marketing manager knows that he or she cannot always affectenvironmental forces.
However, smart managers can take a proactive, rather than reactive,approach to the marketing environment. As marketing management collects and processes data on these environments, they must be ever vigilant in their efforts to apply what they learn to developing opportunities and dealing withthreats. Studies have shown that excellent companies not only have a keen sense of customer butan appreciation of the environmental forces swirling around them.
All firms are encouraged to adopt an environmental management perspective in thenew millennium. Being successful means being able to adapt the marketing mix to trends and changes thisenvironment.
The marketing environment offers both opportunities and threats. The company must use its marketing research and marketing intelligence systems to monitor the changing environment. Systematic environmental scanning helps marketers to revise and adapt marketing strategiesto meet new challenges and opportunities in the marketplace. The marketing environment ismade up of a: Micro Environmental The microenvironment consists of five components. The second component includes the marketing channel firmsthat cooperate to create value: The third componentconsists of the five types of markets in which the organization can sell: The fourth component consists of thecompetitors facing the organization.
So themicroenvironment consists of six forces close to the company that affect its ability to serve itscustomers: The company itself including departments. Marketing channel firms intermediaries. Lets discuss these forces in detail: This could bedeemed the internal environment. Marketing managers must also work closely with other company departments. The goal is to providesuperior customer value and satisfaction.
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Suppliers Suppliers are firms and individuals that provide the resources needed by the company and itscompetitors to produce goods and services. One consideration is to watch supply availability such as supply shortages. Another point of concern is the monitoring of price trends of key inputs. Rising supply costsmust be carefully monitored.
Marketing Intermediaries Marketing intermediaries are firms that help the company to promote, sell, and distribute itsgoods to final buyers. These include wholesalers and retailers who buy and resell merchandise. Resellers often perform important functions more cheaply than the company can performitself. However, seeking and working with resellers is not easy because of the power that somedemand and use. Physical distribution firms help the company to stock and move goods from their points of origin to their destinations.
Examples would be warehouses that store and protect goods beforethey move to the next destination. Marketing service agencies such as marketing research firms, advertising agencies, mediafirms, etc. These markets normally include: Competitors Every company faces a wide range of competitors. A company must secure a strategic advantageover competitors by positioning their offerings to be successful in the marketplace. No singlecompetitive strategy is best for all companies.
Political and legal forces: Micro Environment Introduction Micro environment factors, are factors close to a business source have a direct impact on its business operations and success. Value marketing trying to offer the consumer greater value for their dollar is a very seriousstrategy in the s. No singlecompetitive strategy is best for all companies. Echo boomers baby boomlets are the large growing kid and teen market.
A company should prepare a marketing plan for all of their major publics as well as their customer markets. Generally, publics can be identified as being: Media publics—carry news, features, and editorial opinion. Government publics—take developments into account. Local publics—includes neighborhood click here and community organizations.
Internal publics—workers, managers, volunteers, and the board of directors. It is of major interest to marketers because it involves people and people make up markets. Demographic trends are constantly changing. Some more interestingones are. The greatest danger isin the poorest countries where poverty contributes to the difficulties. Emerging markets such asChina are receiving increased attention from global marketers.
The most important trend is the changing age structure of the population. The population isaging because of a slowdown in the birth rate in this country and life expectancy is increasing. The new prime market is the middle age group in the future it will be the senior citizen group. There are many subdivisions of this group. Generation X—this group lies in the shadow of the boomers and lack obvious distinguishingcharacteristics. They are a very cynical group because of all the difficulties that have surroundedand impacted their group. Echo boomers baby boomlets are the large growing kid and teen market.
This group is usedto affluence on the part of their parents as different from the Gen Xers. One distinguishingcharacteristic is their utter fluency and comfort with computer, digital, and Internet technology sometimes called Net-Gens. Generational marketing is possible, however, caution must be used to avoid generationalalienation. The work force is be-coming more white-collar. Products such as books and education services appeal to groups following this trend. Technicalskills such as in computers will be a must in the future.
The final demographic trend is theincreasing ethnic and racial diversity of the population.
Diversity is a force that must berecognized in the next decade. However, companies must recognize that diversity goes beyond ethnic heritage. One the important markets of the future are that disabled people a market larger any of our ethnic minority groups. Economic Environment The economic environment includes those factors that affect consumer purchasing power andspending patterns.
Major economic trends in the United States include: Personal consumption along with personal debt has gone up s and the early s brought recession that has caused adjustments both personally and corporately in this country. Today, consumers are more careful shoppers. Value marketing trying to offer the consumer greater value for their dollar is a very seriousstrategy in the s. Real income is on the rise again but is being carefully guarded by a value-conscious consumer.
Income distribution is still very skewed in the U. In addition, spending patterns show that food, housing, and transportation stillaccount for the majority of consumer dollars. Marketersmust carefully monitor economic changes so they will be able to prosper with the trend, notsuffer from it.
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Natural Environment The natural environment involves natural resources that are needed as inputs by marketers or that are affected by marketing activities. During the past two decades environmental concernshave steadily grown. Some trend analysts labeled the specific areas of concern were: Shortages of raw materials. Staples such as air, water, and wood products have been seriously damaged and non-renewablesuch as oil, coal, and various minerals have been seriously depleted during industrial expansion.
Increased pollution is a worldwide problem. Industrial damage to the environment is very serious. The public response to these companies is encouraging. However, lack of adequate funding, especially in third world countries, is a major barrier. Government intervention in natural resource management has caused environmental concerns to be more practical andnecessary in business and industry.
Leadership, not punishment, seems to be the best policy for long-term results. Instead of opposing regulation, marketers should help develop solutions to thematerial and energy problems facing the world.
The so-called green movement has encouraged or even demanded that firms produce strategiesthat are not only environmentally friendly but are also environmentally proactive. Firms are beginning to recognize the link between a healthy economy and a healthy environment. Technological Environment The technological environment includes forces that create new technologies, creating new product and market opportunities. Technology is perhaps the most dramatic force shaping our destiny 2.
New technologies create new markets and opportunities. The following trends are worth watching: Faster pace of technological change. Products are being technologically outdated at a rapid pace. There seems to be almost unlimited opportunities being developed daily. The challenge is not only technical but also commercial—to make practical, affordableversions of.
Marketers should be aware of the regulations concerning product safety,individual privacy, and other areas that affect technological changes. They must also be alert to.
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Political Environment The political environment includes laws, government agencies, and pressure groups thatinfluence and. Various forms of legislation regulate business. Governments develop public policy to guide commerce—sets of laws and regulations limiting business for the good of society as a whole. Almost every marketing activity is subject to a wide range of laws and regulations.
Sometrends in the political environment include: Protect companies from each other. Protecting consumersfrom unfair business practices. Protecting interests of society against unrestrained business please click for source. Changing government agency enforcement.
New laws and their enforcement will continue or increase. Increased emphasis on ethics and socially responsible actions. Socially responsible firmsactively seek out ways to protect the long-run interests of their consumers and the environment. Recent scandals have increased concern about ethics and social responsibility.
The boom in e-commerce and Internet marketing has created a new set of social and ethicalissues. Concerns are Privacy, Security, Access by vulnerable or unauthorized groups. Certain cultural characteristics can affectmarketing decision-making. Among the most dynamic cultural characteristics are: Persistence of cultural values. Core beliefs and values are passed on from parents to children and are reinforced byschools, churches, business, and government.
Secondary beliefs and values are more open tochange. Shifts in secondary cultural values. Since secondary cultural values and beliefs are open tochange, marketers want to spot them and be able to capitalize on the change potential. People vary in their emphasis on serving themselves versusserving others.
These include wholesalers and retailers who buy and resell merchandise. Since secondary cultural values and beliefs are open tochange, marketers want to spot them and be able to write an essay about micro environment on the change potential. For example if government decides to cut funds for public sector in order to save money, all councils may have to look for cheaper options to buy gloves for their workmen, which means Dynamic Ltd could lose their customers. Macro environment The macro environment consists of constituents that are beyond of the business organisation. I will propose him segmentation criteria, targeting and positioning for his products. Some organisations will even employ public relations PR consultants to help them manage a particular event or incident. Loveof nature and sports associated with nature are expected to be significant trends in the nextseveral years. What can you do?
In the s, personal ambition and materialism increased write an essay about micro environment, withsignificant implications for marketing. The leisure industry was a chief beneficiary.
People are willing to work for large organizations butexpect them to become increasingly socially responsible. Many companies are linkingthemselves to worthwhile causes. Honesty in appeals is a must. This orientation influences consumption patterns. However, nature is finite.
Loveof nature and sports associated with nature are expected to be significant trends in the nextseveral years. Studies of the origin of man, religion, and thought-provokingad campaigns are on the rise. Currently, Americans are on a spiritual journey.