The marketing environment

[M H Parvez]

The term "marketing environment" relates to all of the factors (whether internal, external, direct or indirect) that affect a firm's marketing decision-making/planning. A firm's marketing environment consists of three main areas, which are:

    The macro-environment, over which a firm holds little control
    The micro-environment, over which a firm holds a greater amount (though not necessarily total) control

The macro-environment

A firm's marketing macro-environment consists of a variety of external factors that manifest on a large (or macro) scale. These are typically economic, social, political or technological phenomena. A common method of assessing a firm's macro-environment is via a PESTLE (Political, Economic, Social, Technological, Legal, Ecological) analysis. Within a PESTLE analysis, a firm would analyze national political issues, culture and climate, key macroeconomic conditions, health and indicators (such as economic growth, inflation, unemployment, etc.), social trends/attitudes, and the nature of technology's impact on its society and the business processes within the society.

The micro-environment

A firm's micro-environment comprises factors pertinent to the firm itself, or stakeholders closely connected with the firm or company.

A firm's micro-environment typically spans:

    Customers/consumers
    Employees
    Suppliers
    The Media

By contrast to the macro-environment, an organization holds a greater degree of control over these factors.

Source: Internet