What is a Marketing Environment?
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Marketing environment is external to the marketing operations, partially controllable, and is relevant to the marketing decision making process. Environment refers to factors which affect the marketing functions of an organisation. Every company operates in an environment. As an organisation works in an environment, the changes in the environment naturally affect the operation and functions of the organisation.
The environment is made up of Macro and Micro environment components –
For most companies, the Micro environmental components are: the company, suppliers, intermediaries, customers, competitors.
The Macro environmental components are thought to be: demographic, economic, natural, technological, political, and cultural forces. Some components of the environment change at faster pace than the others. For example, one can see a big change in technology than a change in political environment.
Scanning the environment is an essential part of marketing management. The main motive is to observe the environmental trends and events that directly or indirectly impact the marketing strategies. For an effective marketing management, a planned approach is needed to scan the environment. The approach includes a continuous study and monitoring of the environment and adapting to the changes by listing the opportunities and threats to the organisation.
Marketing Environment is that which is external to the marketing management function, largely uncontrollable, potentially relevant to marketing decision making, and changing and/or constraining in nature. – David Cravens, Gerald Hills and Robert Woodruff, Marketing Management, AITBS books, Delhi 2002;
The marketing environment consists of all the actors and forces outside marketing that affect the marketing management’s ability to develop and maintain successful relationships with its target customers.– Philip Kotler
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Yes Tom, it’s hard work. Have been putting lot of time and efforts. Thanks for your kind words. That’s what I work for. Feels good when the effort made has reached its goal.