MK06 Macro and Micro Environments

Define micro environmental forces affecting a company's ability to serve customers.
Examine how micro environmental forces impact a company's business.
Define the role and importance of the marketing function in a business.
Explain the interrelationship between the marketing function and other functions in a company.

A company’s business environment consists of factors and forces that affect its marketing management’s ability to build and maintain successful relationships with target customers.
The business environment is made up of macro-environment and micro-environment.

Factors/forces close to the company that affects its ability to serve its customers.
Includes internal and external forces.
External forces (suppliers, marketing intermediaries, competitors, public, and customers) are more difficult to influence.
Internal Environment: The Company
External Environment: Suppliers, Marketing intermediaries, Competitors, Publics, Customers

Each organizational function needs to work together with other functions so that the whole organization has the same aims and objectives.
To achieve this, communication across the various functions is the key activity.
A starting point for this type of communication is the creation of a clear set of company objectives which each function/department is aware of.
These objectives then need to be further broken down into specific objectives for each function.
Examples:
- Marketing: Understand Customer Needs
- Research & Development: New Product Design and Development
- Production: Cost Containment, Production Efficiencies & Quality Issues
- Finance: Managing Resources e.g. Salaries and Expenses
- Human Resource: Manpower, Training
- Sales: Sales Forecast, Retail Programmes

Companies, organizations, or individuals that help manufacturers sell their products to consumers.
Include wholesalers, retailers, agents, brokers, and distributors.
Influence business organizations and can be a major determining force in the business.

Other business entities that compete for resources as well as markets.
Analysis questions:
- Who are the competitors?
- What are their present strategy and business objective?
- Who are the most aggressive and powerful competitors?

Groups of people or individuals who can affect a company's performance and operations.
Can influence:
- Image
- Buying decisions
- Reputation
Include:
- Media
- Government
- Local communities
- Special interest groups

Monitor and analyze changes in consumer tastes, preferences, and buying habits.
Questions:
- Who are the customers/consumers?
- What benefits are they looking for?
- What are their buying patterns?

The Company: Refers to the internal environment.
Suppliers: Delay in receiving supplies can result in customer dissatisfaction
Marketing Intermediaries: Help the company promote, sell, and distribute its products to final buyers.
Competitors: A company must consider who their biggest competitors are.
Publics: Any group that has an interest in or impact on the organization’s ability to meet its goals.
Customers: Different types of customer markets including consumer markets, business markets, government markets, international markets, and reseller markets

Marketing Analysis: Where are we now? Where do we want to go?
Marketing Planning: How do we allocate resources to get where we want to go? How do we convert our plans into actions?
Marketing Implementation: Deploy resources to convert plans into actions
Marketing Control: Control and track that the goals set are being met.

Marketing Analysis: Scan the Marketing Environment (macro and micro) to identify the factors and trends that impact the market/ industry.
Marketing Planning: Use SWOT Analysis to analyze the environmental factors and trends that impact the company directly, as well as formulate marketing strategies.