Creating Enviroment

The Marketing Environment

No business exists and operates in a vacuum, but as part and parcel of the environment in which it finds itself.

The marketing environment is made up of a set of factors or forces that operate or affect a company’s performance in its chosen target market.

Jain (1981:69) described the marketing environment to include those factors that might affect the business directly or indirectly in any perceptible way. Marketing environment variables influence the business by the means of input and the organizations also affect the environment by output.

The marketing environment consists of those forces or element that affects on the organization’s capacity to operate effectively in its chosen target market.

The marketing environment is divided into two key components. The elements are,

Internal environment: the internal environment is concerned with controllable factors. Controllable variables are categorized into two groups, they’re; the plan variables and unmarketable factors. External environment: the outside environment is concerned with uncontrollable variables. These factors are called uncontrollable because the marketing manager can’t directly control some of those components. The marketing manager is left with the choice of adapting to the environment by immediate monitoring, forecasting, and analysis of these environmental factors. The outside environment can further be divided into two elements, the microenvironment, and the macro environment.


The components that fall under the microenvironment consist of forces or factors in the business’s immediate environment that impact the company’s capability to carry out effectively in the marketplace. These forces are suppliers, distributors, clients, and competitors. Let’s discuss all those factors in detail.


Providers are business customers who provide products and services to other business organizations for resale or the productions of different products. The behavior of certain forces at the providers can affect the performance of the buying organization favorably or negatively. The critical factors here would be the number of suppliers and the number of suppliers to the business. An audit of the providers will empower us to value their power and bargaining power, which the suppliers hold over the sector as a whole. The answers to the problems concerned have the potentials to impact the capability of companies in the business to effectively deliver need-satisfying products and/ or services. The trend today is that buyers attempt to persuade the provider to supply just what the companies want. This practice is called”reverse marketing”.


Customers are individuals who purchase goods and/ or services created by the provider. In a purchase chain, different individuals play significant roles before a purchase decision is made. The various influences have to be understood. The client may be the customer of the goods where he/she is the consumer. The critical factor here is that needs and wants of customers are not static. They are fast changing. The changes in the preferences of the consumer create opportunities and dangers on the market. The changes called for the marshaling of separate strategies to either fit into windows of chances or endure the dangers in the market. A good understanding of customers’ behavior will ease the design and creation of goods and services that the clients need and want, rather than what they can produce.


Competition is a company operating in the same sector or marketplace with another firm. The consideration here is that Firm A generates a substitute to that of company B (industrial approach) or firm A and firm B seeks to meet the same customer need (market strategy). To get further information just visit The Famous Blend.

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