Marketing environment refers to the factor and forces that affect a person's ability to build and maintain successful customer relationships. The marketing environment involves both the external and internal forces that affect the business. These forces may be from the technological or the cultural forces that influence the customers, competitors, and suppliers.
In a marketing environment, you identify the consumer's demands and keep in mind the factors and decisions that a customer takes before buying the items. Marketers try to predict the changes that take place, including all the future changes, by monitoring and marketing the environment. Changes are made to remove threats and increase opportunities in the business to promote progress.
Changes and strategies are well planned so that the modification is easier to make in an organization.
Types of Marketing Environment
The organization’s sales depend upon the marketing environment, so we need to make our marketing environment well efficient and control all the forces in an organization. Following are the types of the marketing environment.
1. Micro Environment
Microenvironment is the environment that is closely linked with the organization and directly affects its activities. It may be divided into supply and demand sides. In a demand-side environment, we include the customers and the clients who buy the products.
Suppliers
Suppliers provide the raw materials to produce the goods and services. Suppliers can influence the profit of an organization because the raw material determines the final price of the product. It is the organization’s responsibility to keep a check on the suppliers regularly to know the supply shortages and the changes in the prices of the inputs.
Marketing intermediaries
Marketing intermediaries assist organizations in developing their relationships with their customers to aid in the promotion of selling and distributing a certain company's products and services to the public.
Marketing intermediaries include the following;
- Resellers
- Distribution centers
- Financial intermediaries
- Financial agencies
- Competitors
- Customers
2. Macro Environment
The macro-environment includes a set of environmental factors which affect the organization, and is beyond our control. The microenvironment is subject to constant change. These changes bring threats and opportunities to an organization.
Demographic environment
The demographic environment is a study of the human population in a particular element such as age, gender, occupation, income location, and many more. Before introducing a new product in the marketplace, a marketer collects information about a particular product. The demographic environment also has an impact on the sales. Due to demographic changes in the organization, it forces them to adjust their marketing tactics and tailor them to the demands of their clients.
Economical environment
The economic environment affects the organization’s cost, and the sales depend upon the current prices of the products, savings and credit availabilities of the customer. All factors that affect the economic environment are
- Inflation
- Unemployment
- Customer income
- Interest rates
- Monetary policy
Natural Environment
The natural environment includes the environmental resources which are used to make the products for an organization. The organization which uses natural products is also facing complication due to globalization. The environmental resources are not present in an appropriate form which is bad for the organization.
The natural environment includes the following:
- Weather
- Pollution
- Natural resources
- Socio-cultural environment
- Technological environment
