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1. The Companys Microenvironment

As discussed earlier the companys microenvironment consists of six forces that affect its ability

to serve its customers. Lets discuss these forces in detail:

a. The Company

The first force is the company itself and the role it plays in the microenvironment. This could be

deemed the internal environment.

All departments must think consumer if the firm is to be successful. The goal is to provide

superior customer value and satisfaction.

b. Suppliers

Suppliers are firms and individuals that provide the resources needed by the company and itscompetitors to produce goods and services. They are an important link in the companys overall

customer value delivery system.

1). One consideration is to watch supply availability (such as supply shortages).2). Another point of concern is the monitoring of price trends of key inputs. Rising supply costs

must be carefully monitored.

c. Marketing Intermediaries

Marketing intermediaries are firms that help the company to promote, sell, and distribute itsgoods to final buyers.

d. Customers

The company must study its customer markets closely since each market has its own specialcharacteristics. These markets normally include:

1). Consumer markets (individuals and households that buy goods and services for personalconsumption).2). Business markets (buy goods and services for further processing or for use in their

production process).

3). Reseller markets (buy goods and services in order to resell them at a profit).

4). Government markets (agencies that buy goods and services in order to produce publicservices or transfer them to those that need them).

5). International markets (buyers of all types in foreign countries).

e. Competitors

Every company faces a wide range of competitors. A company must secure a strategic advantageover competitors by positioning their offerings to be successful in the marketplace. No singlecompetitive strategy is best for all companies.

f. Publics

Apublic is any group that has an actual or potential interest in or impact on an organizations

ability to achieve its objectives. A company should prepare a marketing plan for all of theirmajor publics as well as their customer markets.

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The Companys Macro environment

The company and all of the other actors operate in a larger macro environment of forces that

shape opportunities and pose threats to the company.

It can be seen on the figure as well.

a. Demographic Environment

Demography is the study of human populations in terms of size, density, location, age, sex, race,

occupation, and other statistics. It is of major interest to marketers because it involves people.Demographic trends are constantly changing.

b. Economic Environment

The economic environmentincludes those factors that affect consumer purchasing power and

spending patterns. Major economic trends in the United States include:

c. Natural Environment

The natural environmentinvolves natural resources that are needed as inputs by marketers orthat are affected by marketing activities. During the past two decades environmental concerns

have steadily grown. Some trend analysts labeled the specific areas of concern were:

1). Shortages of raw materials.

Staples such as air, water, and wood products have been seriously damaged and non-renewablesuch as oil, coal, and various minerals have been seriously depleted during industrial expansion.

2). Increased pollution

is a worldwide problem. Industrial damage to the environment is very serious.

3). Government intervention

in natural resource management has caused environmental concerns to be more practical andnecessary in business and industry.

4). Environmentally sustainable strategies.

The so-called green movement has encouraged or even demanded that firms produce strategiesthat are not only environmentally friendly but are also environmentally proactive. Firms are

beginning to recognize the link between a healthy economy and a healthy environment.

d. Technological Environment

The technological environmentincludes forces that create new technologies, creating newproduct and market opportunities.

e. Political Environment

Thepolitical environmentincludes laws, government agencies, and pressure groups thatinfluence and limit various organizations and individuals in a given society. Various forms of

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legislation regulate business.

f. Cultural Environment

The cultural environmentis made up of institutions and other forces that affect societys basic

values, perceptions, preferences, and behaviors. Certain cultural characteristics can affectmarketing decision-making.