Is it a promising area for theory development in marketing? Some of their values include: honesty, integrity. The marketing environment is the totality of forces and institutions that are external and potentially relevant to a firm. It includes suppliers that deal directly or indirectly, consumers and customers, and other local stakeholders. Special Features of marketing theory 6. Here the marketing executives need not be lawyers but should be aware of the Acts and provisions affecting their area. These factors represent constraints within which all organizations including the automobile industry must function.
There are a lot of factors involved on how businesses behave on market. The political and legal forces prevailing in country can be grouped into at least five captions namely: 1. The main determinant of Micro Economics is price. Commodity, Commodity market, Economic growth 1404 Words 5 Pages 1. On the other hand, depression is a period of stockpiles, restricted money supply, lack of demand, unemployment. Micro environment: The micro environment is the smallest of the three environments. It is a more local relationship, and the firm may exercise a degree of influence.
Some of the characteristics are as follows. The reasons for this increase in the age structure of the population are the increasing life expectancy and the downfall in the birth rate. Macro and micro environment comprise the structure of the marketing environment. There are different departments in the company who collectively responsible to make the products. In recent trends companies can lower their supply cost and increase their product quality.
Conclusion: Thus, when a marketing manager is considering putting forward a marketing plan then he has to consider both the internal and external marketing environments and see both opportunities and threats to the business. It should be noted that technology is a mixed blessing in other ways too. While some of the factors are in the control of the business, most of these are not and the business has to adapt itself to avoid being affected by changes in these factors. Especially in times of rapid world population growth, and overall demographic changes, the study of people is crucial for marketers. The general scope of environmental scanning is that it is a component of global environmental analysis. These external and internal factors group together to form a marketing environment in which the business operates. Macro environment is basically referred to the area of external business operations of a particular organization.
This is a standout amongst the most impacting variables, in light of the fact that it manages the individuals who structure the business. Control, Control freak, Delegation 1951 Words 5 Pages macromarketing 3. All of these may shape opportunities for the company, but could also pose threats. Shareholder pressure to increase profits will affect organisational strategy. This process begins at recruitment stage and continues throughout an employee's employment via ongoing training and promotion opportunities. More than 70% of the expected world population growth in the next 40 years is expected to take place outside of the 20 richest nations on earth. This is going on in a big way in automobile industry and electronics.
What rules does it need to obey? The company has a duty to satisfy the people at large along with competitors and the consumers. The macro environment is primarily concerned with major issues and upcoming changes in the environment. What is meant by the term marketing environment? These six forces are largely uncontrollable by management. All the same, the sales, production and procurement of the business organizations, directly or indirectly depends on these factors. The company is not alone in doing business.
In this context, a market is a place where buyers and sellers meet, goods and services are offered for sale and transfer of title of the goods takes place. The introduction of public shareholders brings new pressures as public shareholders want a return from the money they have invested in the company. Meaning: - The term Business Environment is composed of two words µBusiness¶ and µEnvironment¶. The firm should study the trends and development and the key success factors of the market, which are as follows: a The existing and the potential demand in market b Market growth rate c Cost structure d Price sensitivity e Technological structure f Distribution system, etc 4. Economics, Empiricism, Marketing 755 Words 3 Pages changeable marketing environment Lovelock, 2002. By the end of the century, it is likely to double. Local publics--includes neighborhood residents and community organizations.
This includes size, density, age, gender, occupation and other statistics. Hence, you will find that businessmen, closely analyze and ponder upon the economic factors affecting business firms. It comprises general forces that affect allbusiness activities in market. External macro- environment 3 2. Some of the factors within the micro environment can be controlled by the firm whilst others can not. Geographic shifts in population One — and the most important — element of geographic shifts is migration.