Wednesday, November 10, 2010


This is also known as the task environment and affects business and marketing at the daily operating level. While the changes in the macro environment affect business in the long run, the effect of micro environmental changes are noticed almost immediately. Organizations have to closely analyse and monitor all the elements of microenvironment in order to adapt to rapid change and stay competitive.

>> Consumer
According to Peter Drucker, the aim of business is to create and retain the customer. Hence consumer occupies the central position in the marketing environment. The marketer has to closely monitor and analyse changes in consumer tastes and preferences and cater to (if not try and anticipate) their buying habits.

>> Competitors
Competition shapes business. A study of the competitive scenario is essential for the marketer, particularly threats from competition.

>> Company
Nothing can be as important as self-analysis by the organization itself. "We have met the enemy, and he is us" - Pogo.
Understanding its own strengths and capabilities in a particular business, that is, understanding a business in depth should be the goal of a firm's internal analysis. The objectives, goals and resource availabilities of a firm occupy a critical position in the microenvironment of marketing. The company with its resources and capabilities surrounds the consumer in the microenvironment.

2.5.4 Market
The market is to be studied in terms of its actual and potential size, its growth prospect and also its attractiveness. The marketer should study the trends and development and the key success factors of the market he is operating.

>> Suppliers
Suppliers form an important component of the microenvironment. With their own bargaining power they affect the cost structure of the industry. They constitute a major force, which shapes competition in the industry. Also organizations have to take a major Marketing Environment decision on "outsourcing" or "in-house" production depending on this supplier environment.

>> Intermediaries
Intermediaries exert a considerable influence in the marketing environment. They can also be considered as the major determining force in the business. In many cases the consumers are not aware of the manufacturer and buy the product from the renowned intermediaries as for example Wal-Mart in US, Pantaloons in India.

>> Public
Public constitute a major force in the micro environment and marketers have to very carefully study their opinion, values, beliefs and attitudes in order to design a proper marketing strategy for goods carefully tailored to meet the needs of the target consumer segment. In a sort of reverse engineering, marketers also use the media to shape consumer tastes and preferences.