Marketing and Environmental Factors

Macro-merchandising Macro-marketing liter every(prenominal)y deals with titanic/ Copernican issues, beyond comparatively simple exchanges between buyers and sellers, or even relationships between companies and customers. In a more interconnected world of markets, marketers, and their stakeholders, macro-marketing is an important mechanism to study both opportunities and shortcomings of marketing, and both its intended confirming effects and unintended deleterious effects.This suggests macro-marketing includes an optimistic perspective that it seeks functional mechanisms to enhance marketing processes, to the benefit of the largest total of stakeholders, the world over. Various Environmental f dissembleors Affecting Marketing process. Various factors affecting marketing process. The surroundal factors that argon affecting marketing process can be classified into 1) Internal surroundings and 2) External environment Internal Environment of Marketing This refers to factors existin g within a marketing firm. They argon also called as controllable factors, because the caller-out has control over these factors a) it can alter or modify factors as its personnel, physiological facilities, organization and function promoter, such as marketing flux, to suit the environment. There ar many congenital factors that influence the marketing process, they are Top Management The organizational structure, Board of Director, professionalization of management.. etc..Factors like the amount of support the top management enjoys from different levels of employees, shareholders and Board of Directors have important infulence on the marketing decisions and their implementation. finance and Accounting Accountingrefers to measure ofrevenue and costs to help the marketing and to know how well it is achieving its objectives. finance refers to funding and using funds to carry out the marketing plan. Financial factors are financial polices, financial position and capital struc ture.Research and Development Research and Development refers to designing the product safe and attractive. They are expert capabilities, determine a company ability to innovate and compete. Manufacturing It is responsible for producing the desired fibre and quantity of products. Factors which infulence the battle of a firm are production capacity technology andefficiency of the productive apparatus, distribution logistics etc. , corrupt Purchasing refers to procurement of goods and serve wells from some external agencies.It is the strategic activity of the business. Company Image and speck Equity The image of the company refers in raising finance, forming joint ventures or other alliancessoliciting marketing intermediaries, enteing purchase or sales contract, launching new products etc. In organization, the marketing resources like organization for marketin, quality of marketing, brand equity and dirtribution network have direct bearing on marketing efficiency. They are i mportant for new product introduction and brand extension, etc.. External Environment of Marketing.External factors are beyond the control of a firm, its suceess depends to a large extent on its adaptability to the environment. The external marketing environment consists of a) Macro environment, and b) Micro environment a) Micro environment The environmental factors that are in its proximity. The factors influence the companys non-capacity to produce and see the market. The factors are 1) Suppliers The suppliers to a firm can also alter its competitive position and marketing capabilities. These are raw material suppliers, energy suppliers, suppliers of labor and capital.According to michael Porter, the relationship between suppliers and the firm epitomizes a power compare between them. This equation is based on the industry condition and the extent to which each of them is dependent on the other. The bargaining power of the supplier gets maximized in the following situations a) The seller firm is a maonopoly or an oligopoly firm. b) The supplier is not obliged to contend with othe substitute products for sale to the buyer group. c) The buyer is not an important customer. d) The supplierss product is an important input to the buyers business and finished product. ) The supplier poses a echt threat of forward integration. 2) Market Intermediaries Every producer has to have a number of intermediaries for promoting, selling and distributing the goods and service to ultimate consumers. These intermediaries whitethorn be individual or business firms. These intermediaries are middleman (wholesalers, retailers, sgents etc. ), ditributing agency market service agencies and financial institutions. 3) Customers The customers may be classified as 1) Ultimate customers These customers may be individual and householders. ) Industrial customers These customers are organization which buy goods and services for producing other goods and services for the inclination o f other earning profits or fulfilling other objectives. 3) Resellers They are the intermediaries who purchase goods with a view to resell them at aprofit. They can be wholesalers, retailers, distributors, etc. 4) Government and other non-profit customers These customers purchase goods and services to those for whom they are produced, for their consumption in most of the cases. ) International customers These customers are individual and organizations of other countries who buy goods and services either for consumption or for industrial use. Such buyers may be consumers, producers, resellers, and governments. 6 )Competitors Competitors are those who sell the goods and services of the same and akin(predicate) description, in the same market. Apart from competition on price, there are like product differentiation. Therefore, it is necessary to build an efficient system of marketing. This will bring confidence and better results. ) Public It is duty of the company to satisfy the peopl e at large along with its competitors and the consumers. It is necessary for future growth. The action of the company do infulence the other groups forming the general public for the company. A public is defined as any group that has an echt or potential interest in or bear upon on a companys ability to achieve its objective. Public relations are certainly a broad marketing operation which must be fully interpreted care of. Macro Environment Macro environment factors act external to the company and are quite uncontrollable.These factors do not affect the marketing ability of the perplexity directly but indirectly the infulence marketing decisions of the company. These are the macro environmental factors that affect the companys marketing decisions a) Demographic Forces Here, the marketer monitor the population because people forms markets. Marketers are keenly interested in the size and growth rate of population in different cities, regions, and nations age distribution and e thnic mix educational levels households patterns and regional characteristics and movements. )Economic Factors The economic environment consists of macro-level factors related to means of production and distribution that have an impact on the business of an organization. c) Physical Forces Components of physical forces are earthsnatural renewal and non-renewal resources. born(p) renewal forces are forest, food products from agriculture or sea etc. Non- renewal natural resources are finite such as oil, coal, minerals, etc. Both of these components quite often change the level and case of resources available to a marketer for his production. ) Technological Factors The technological environment consits of factors related to knowledge applied, and the materials and machines used in the production of goods and services that have an impact on the business of an organization. e) Political and Legal Forces Developments in governmental and legal field greatly affect the marketing decisio ns. sound marketing decision cannot be taken without taking into account, the government agencie, political party in power and in opposition their ideologies, pressire groupss, and laws of the land. These variables create fantastic pressures on marketing management.Laws affect production capactiy, capability, product design, pricing and promotion. Government in almost all the country intervenes in marketing process irrespective of their political ideologies. f) Social and Cultural Forces This concept has crept into marketing literature as an alternative to the marketing concept. The social forces attempt to make the marketing socially responsible. It means that the business firms should take a lead in eliminating socially harmful products and produce only what is good to the soceity. These are numbers of pressure groups in the soceity who impose restrictions on the marketing process.