There are two elements within the external marketing environment; micro and macro. These environmental factors are beyond the control of marketers but they still influence the decisions made when creating a strategic marketing plan.
Micro Environment Factors
- Suppliers: Suppliers can control the success of the organisation when they hold power. The supplier holds the power when they are the only or the largest supplier of their goods; the buyer is not vital to the supplier’s business; the supplier’s product is a core part of the buyer’s finished product and/or business. Imagine they are the link in the value delivery processes and what impact this may have.
- Resellers: If the organisation’s product or service is taken to market by third-party resellers or market intermediaries such as retailers, wholesalers, etc. then the marketing success is impacted by those third-party resellers. For example, if a retail seller is a reputable name then this reputation can be leveraged in the marketing of the product. They are the link between the organisation and the customer, so are important due to factors such as promotion and distribution.
- Customers: Who the customers are (B2B or B2C, local or international, etc.) and their reasons for buying the product will play a large role in how the organisation approaches the marketing of its products and services to them. It is also important to note the stability of demand and how this can impact the outcomes of any marketing efforts.
- The competition: Those who sell the same or similar products and services as the organisation is the market competition, and the way they sell needs to be taken into account. In reality, every organisation that sells something similar is classed as competition. What impact do their prices and product differentiation have? How can the organisation leverage this to reap better results and get ahead of the competition?
- The general public: The organisation has a duty to be a good corporate citizen. Any actions the company takes must be considered from the angle of the general public and how they are affected. The public has the power to help the organisation reach its goals; just as they can also prevent the organisation from achieving them. The opinion of the public can play a key part in the success of any marketing efforts.
Macro Environment Factors
- Economic factors: The economic environment can impact both the organisation’s production and the consumer’s decision-making process. These can include interest rates, recession, demand and supply for example.
- Natural/physical forces: The Earth’s renewal of its natural resources such as forests, agricultural products, marine products, etc. must be taken into account. There are also natural non-renewable resources such as oil, coal, minerals, etc. that may also impact the organisation’s production. In the broader picture, these can be linked to climate change, pollution and new law and regulations that regulate the environment.
- Technological factors: The skills and knowledge applied to the production, and the technology and materials needed for the production of products and services can also impact the smooth running of the business and must be considered. Automation, connectivity, speed and performance are all necessary considerations.
- Political and legal forces: Sound marketing decisions should always take into account political and/or legal developments relating to the organisation and its markets.
- Social and cultural forces: marketing must consider changing in culture and society when creating successful marketing activities. These include aspects such as demographics, consumer attitudes, buying patterns, changes in population and employment patterns as well as changes in living standards.
Wrap Up
The micro and macro environment have a significant impact on the success of marketing activities, and therefore such environmental factors must be considered in-depth during the process of creating a strategic marketing plan. Considering these factors will improve the success of an organisation’s marketing campaign and the reputation of the brand in the long term.
A consistent revaluation of these factors is also integral to ensuring the organisation is not being hindered by any new forces, micro or macro, and could become a potential issue.
If you want to learn more about the micro and macro environment, and strategic marketing as a whole, then you may be interested in the CIM Diploma in Professional Marketing. The marketing course is ideal for individuals looking to build practical skills in marketing management and broaden their strategic perspective. Get your two-week free trial by contacting us or completing the form on our website.
Updated October 2023
Red Barrington2024-01-15T17:14:57+00:00November 4th, 2014|
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