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Micro environment
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- 3. EXTERNAL ENVIRONMENTAL FACTORS Externalelements are affecting factors outside and under no control of the company. Considering the outside environment allows businessmen to take suitable adjustments to their marketing plan to make it more adaptable to the external environment. Elements of External Environment: Micro factors Macro Factors
- 4. MICRO FACTORS Micro environmentrefers to those individuals, groups and agencies with which the organizations come into direct and frequent contact in the course of its functioning. These have a direct influence on the performance of the Company. Customers Competitors Suppliers Marketing Intermediaries Financiers The Public
- 5. MACRO FACTORS Political/legalenvironment Socio cultural environment Economic and financial environment Technological environment Natural or physical environment Demographic environment International/Global environment
- 6. CUSTOMERS One ofthe most fundamental factors we learn in economics is that satisfying customer demand is a must for every business survival. Besides to be the leading company entrepreneurs should not only identify but also tailor to their customer’s interest.
- 7. COMPETITORS The competitiveenvironment consists of certain basic things which every firm has to take note of. No company, howsoever large it may be, enjoys monopoly. In the original business world a company encounters various forms of competition. The most common competition which a company’s product now faces is from differentiated products of other companies.
- 8. SUPPLIERS Suppliers areeither individuals or business houses. They combined together provide resources that are needed by the company and suppliers who offer best mix of quality, delivery reliability, credit, warranties and obviously low cost must be chosen.
- 9. MARKETING INTERMEDIARIES Marketintermediaries are either individuals or business houses who come to the aid of the company in promoting, selling and distributing the goods to the ultimate consumers. They are Middlemen (wholesalers, retailers and agents), distributing agencies, market service agencies and financial institutions. Most of the companies find, it is too difficult to reach the consumers. In such a cases the agents and distribution firms help to reach the product to the consumer.
- 10. FINANCIERS Shareholders, financialinstitutions, debenture holders and banks provide finance to a Company. Financial capacity, policies and attitudes of financiers etc. are important factors of the Company. If the investors are not interested in risk taking, the Company cannot raise funds through shares.
- 11. PUBLIC Literally word‘public’ refers to people in general. According to Philip Kotler, “A public is any group that has an actual or potential interest in or impact on a company’s ability to achieve its objectives.” The environmentalists, consumer protection groups, media persons and local people are some of the well-known examples of public.
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