Note on Meaning and scope of marketing environment , micro environment variables

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Marketing Environment

 Every manager in an organization observes both inside and outside environment. The marketing environment is made up of a micro environment and macro environment.

Factors which are close to the company that affects the performance towards the customers consist in a micro environment. The company, suppliers, marketing intermediaries, customer markets , competitors, and publics are the major factors in the microenvironment. These actors can be controlled by a company itself and are also called controllable factors. Macroenvironment consists of larger societal forces that affect the microenvironment like demographic, economic, natural, technological, political, and cultural forces that cannot be controlled by a company. So these factors are also called uncontrollable factors.


Scope of Marketing Environment

There is various scope of marketing environment that are described below:


Customers are one of the major elements in marketing and there is no existence of market without them . They are final factors who buys the goods and services and their behavior while buying the goods will be affected by the environment.

Marketing Organizations

The organizations that conduct marketing is called marketing organizations. The activities of these organizations are affected by the environment.

Internal and external elements

Both internal and external elements of organizations fall under the marketing environment. Companies, suppliers, intermediaries, customers, competitors, people etc. are included in internal factors whereas population, economic, natural, socio- culture etc. are external elements.

Marketing mix element

Product , price, place and promotion are the key elements in marketing which are included in the marketing mix. Types of product , design , quality , branding, packaging are the example of product mix. Discount , terms, and conditions of sale ,method of payment are the major elements of price mix. Place mix includes agents, wholesalers, retailers, warehousing, transportation. Promotion mix consists of sale promotion, personal selling, publicity, advertisement. These all elements affect the marketing environment.


The Company’s Microenvironment

Factors which are close to the company that affects the performance towards the customers is called microenvironment. The company, suppliers, marketing intermediaries, customer, markets, competitors, and publics are the major factors in the microenvironment.Marketing management tries to interact with the customers and build customer satisfaction. The major variables that play role in a micro environment are described below.

Variables in Marketing Environment
Variables in Microenvironment










The Company

While designing the marketing plans, marketing management takes a company into account as top management, finance, research and development, purchasing operations and accounting. These all groups are interrelated with the internal environment. Top management task is to set the company's mission, objectives, broad strategies, and policies. Marketing managers make decision within the objectives and strategies made by top management.

Elements of Company In Marketing Environment
Elements of Company In Marketing Environment


Source : internal+environmental+elements+of+company.jpg



Suppliers are that link of the marketing environment in a company that adds value to the delivery system. They provide the resources that are required by the company in terms of goods and services. The problem in the suppliers seriously affects the marketing. Its marketing manager duty is to watch the supply availability and costs. Supply shortages or delays, labor strikes and other events can cost sales in the short run and damage satisfaction in a long run. The rise in the supply cost force price increases that can harm the company’s sales volume.


Marketing Intermediaries

Marketing Intermediaries help the firm to sell, promote and distribute the final products into the market. Resellers, physical distributions firms, marketing services agencies, and financial intermediaries are included in marketing intermediaries.These includes wholesalers and retailers who buy and resell the product.

Thus, marketers have known the importance of working with their intermediaries as partners rather than simply a channels through which they sell their products. For example, when Coca-Cola signs on as the beverage provider in any company like McDonalds or Subway, it provides not only soft drinks but also the powerful marketing support.



The marketing concept states that to be successful, a company must provide better customer satisfaction than their competitors do. It will be difficult for any company to sustain in this modern era without providing customer values and satisfaction than the competitors do. Thus, marketers must do more than adapting the target consumers. They must be able to position their products by offering their product strongly against the competitors.

Not only a single marketing strategy will be best for the company. Each firm should consider its own size and industry position compared to those of its competitors. Large firms with dominant strategies can use certain strategies which small firms cannot afford. It is also true that being large will not be enough in order to achieve the long-term success of an organization. Small firms can develop strategies that give a better return on their investment which large company does not enjoy.



Any group that has the actual interest or impact in an organization's ability to achieves its goals and objectives effectively and efficiently. We can identify seven types of public:

  • Financial publics: This group influences the firm's ability to obtain funds. Banks, investment houses, and stockholders are major financial publics.
  • Media publics: This group carries news, features, and editorial opinion. Newspapers, magazines, radio and television stations are included in it.
  • Citizen- actions publics: A Company's marketing decision can be questioned by various factors like consumer organizations, environmental groups, minority groups and others.
  • Local publics: Neighborhood residents and community organizations are included in local publics. A community relations officer are appointed by a large company in order to deal with the community, attend meetings, answer questions and contribute to worthwhile causes.
  • General Public: A company must need to be concerned about the general public's attitudes toward its product and activities. The public image of the company affects its buying.
  • Internal public: Workers, managers, volunteers, and the board of directors are related to internal publics. The Large company uses newsletters and other means to inform and motivate their employees. When employees feel good about the company they work then the positive thing will spread out in external publics.



As we know that customers are the most important actors in the company's marketing environment. The aim of the whole system is to serve their target customers and build strong relationship with them. The company targets any of the customer markets like consumer markets, business markets, reseller markets, government markets and international market.



Kotler, P., & Armstrong, G. (2013). Principles of Marketing. Chennai: Pearson India Education Services Pvt Ltd.

  • Marketing environment
  • Scope of Marketing environment
  • Microenvironment in marketing environment
  • Marketing Intermediaries
  • Marketing Mix



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