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Understanding the Micro Environment Factors

The micro environment contains factors that directly influence a company's ability to serve its customers, including other departments within the company, suppliers, marketing intermediaries, competitors, public groups, and customers. A company must successfully coordinate with these actors to create a strong brand image, while unsuccessful coordination can damage the company's image. Key micro environment factors are a company's internal departments, suppliers who provide resources, intermediaries who help promote and distribute products, competitors a company must stay aware of, various public groups, and customers which the entire system aims to serve.

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153 views15 pages

Understanding the Micro Environment Factors

The micro environment contains factors that directly influence a company's ability to serve its customers, including other departments within the company, suppliers, marketing intermediaries, competitors, public groups, and customers. A company must successfully coordinate with these actors to create a strong brand image, while unsuccessful coordination can damage the company's image. Key micro environment factors are a company's internal departments, suppliers who provide resources, intermediaries who help promote and distribute products, competitors a company must stay aware of, various public groups, and customers which the entire system aims to serve.

Uploaded by

Sam David
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd

MICRO ENVIRONMENT

What is Micro Environment?

It contains certain factors that affect company's ability to


serve its customers.
These actors can act in two ways:
• Successful relationship
with them will create a
strong image of your
company.
• Un successful co
ordination with any of the
factors can lead to break
the image of your
company.
1. Company

Marketers must work in harmony with other company


departments such as finance, R&D, purchasing and
operations to create customer value and satisfaction.

Must work in collaboration with top management plans and


strategies.
For example:
Walmart's
marketers can't
promise us low
prices unless its
operations
department
delivers low cost
2: Suppliers
• Suppliers form an important link in company's overall
customer value delivery network.
• They provide resources needed by the company to
produce its goods and services.
• Supply shortages or delays, labour strikes and other
events can damages customer satisfaction in the long
run.
For eg: Furniture co. needs woods as basic raw
material
What most marketers do?
• They treat their suppliers
as partners in creating and
delivering customer value.
3: Marketing Intermediaries
• In creating value for customers marketers must partner
with other firms in the company's value delivery network.

• Help the company to promote, sell and distribute its


products to final buyers.
Types of Marketing Intermdiaries:

1: Resellers
for eg: wholesalers, retailers
2: Physical Distribution
Helps in transporting goods via freight, trucks, trains etc
3:Marketing Service Agencies
for eg: advertising frims, media agencies...etc
4: Financial Intermediaries
For eg: Banks, credit companies, insurance companies
4: Competitors

Firms must keep an eye on changing wants and needs of


customers and must gain advantage by positioning their
offerings against competitors' offerings.

They should be the FIRST to serve any latest innovation or


technology to their target customers.
5: Publics
• Any group that has actual or potential interest in or impact
on organization's ability to achieve its objectives.
Financial Publics
Media Publics
Government Publics
Citizen action Publics
Local Publics
General Publics
Internal Publics
For Eg: Shan came up taking views from general
public
6: Customers
• Most important actors in company's micro environment.
• The aim of the entire value delivery system is to serve
target customers and create strong relationship with
them.
 Consumer Markets
 Business Markets
 Government Markets
 International Markets

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