What are the impacts of macro-environment in an organization?
Micro environmental
The microenvironment consists of five components. The first is
the organization's internal environment-its several departments and
management levels-as it affects marketing management's decision
making. The second component includes the marketing channel firms
that cooperate to create value: the suppliers and marketing
intermediaries (middlemen, physical distribution firms,
marketing-service agencies, financial intermediaries). The third
component consists of the five types of markets in which the
organization can sell: the consumer, producer, reseller,
government, and international markets.
The fourth component consists of the competitors facing the
organization. The fifth component consists of all the publics that
have an actual or potential interest in or impact on the
organization's ability to achieve its objectives: financial, media,
government, citizen action, and local, general, and internal
publics. So the microenvironment consists of six forces close to
the company that affect its ability to serve its customers:
a. The company itself (including departments).
b. Suppliers.
c. Marketing channel firms (intermediaries).
d. Customer markets.
e. Competitors.
f. Publics.
1. The Company's Microenvironment
As discussed earlier the company's microenvironment consists of
six forces that affect its ability to serve its customers. Lets
discuss these forces in detail:
a. The Company
The first force is the company itself and the role it plays in
the microenvironment. This could be deemed the internal
environment.
1). Top management is responsible for setting the company's
mission, objectives, broad strategies, and policies.
2). Marketing managers must make decisions within the parameters
established by top management.
3). Marketing managers must also work closely with other company
departments. Areas such as finance, R & D, purchasing,
manufacturing, and accounting all produce better results when
aligned by common objectives and goals.
4). All departments must "think consumer" if the firm is to be
successful. The goal is to provide superior customer value and
satisfaction.
b. Suppliers
Suppliers are firms and individuals that provide the resources
needed by the company and its competitors to produce goods and
services. They are an important link in the company's overall
customer "value delivery system."
1). One consideration is to watch supply availability (such as
supply shortages).
2). Another point of concern is the monitoring of price trends
of key inputs. Rising supply costs must be carefully monitored.
c. Marketing Intermediaries
Marketing intermediaries are firms that help the company to
promote, sell, and distribute its goods to final buyers.
1). Resellers are distribution channel firms that help the
company find customers or make sales to them.
2). These include wholesalers and retailers who buy and resell
merchandise.
3). Resellers often perform important functions more cheaply
than the company can perform itself. However, seeking and working
with resellers is not easy because of the power that some demand
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 before they move
to the next destination).
Marketing service agencies (such as marketing research firms,
advertising agencies, media firms, etc.) help the company target
and promote its products.
Financial intermediaries (such as banks, credit companies,
insurance companies, etc.) help finance transactions and insure
against risks.
d. Customers
The company must study its customer markets closely since each
market has its own special characteristics. These markets normally
include:
1). Consumer markets (individuals and households that buy goods
and services for personal consumption).
2). Business markets (buy goods and services for further
processing or for use in their production process).
3). Reseller markets (buy goods and services in order to resell
them at a profit).
4). Government markets (agencies that buy goods and services in
order to produce public services or transfer them to those that
need them).
5). International markets (buyers of all types in foreign
countries).
e. Competitors
Every company faces a wide range of competitors. A company must
secure a strategic advantage over competitors by positioning their
offerings to be successful in the marketplace. No single
competitive strategy is best for all companies.
f. Publics
A public is any group that has an actual or potential interest
in or impact on an organization's ability to achieve its
objectives. 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:
1). Financial publics--influence the company's ability to obtain
funds.
2). Media publics--carry news, features, and editorial
opinion.
3). Government publics--take developments into account.
4). Citizen-action publics--a company's decisions are often
questioned by consumer organizations.
5). Local publics--includes neighborhood residents and community
organizations.
6). General publics--a company must be concerned about the
general public's attitude toward its products and services.
7). Internal publics--workers, managers, volunteers, and the
board of directors.
