Chapter 3, Problem 3.1DQ

Summary Introduction

To discuss: The elements of an organization’s micro environment and its effects on marketing.

Micro-environment:

It provides value to the customers directly. The internal elements of micro-environment are customers, company, suppliers, intermediaries, consumer markets, and publics.

Explanation of Solution

Elements of organization microenvironment:

• Company: In formulating marketing strategy, marketing managing takes other companies departments into account such as finance, research, purchasing operations, and in accounting. These groups form an internal environment. Each group has their own functions such as policies formulations, implementation of strategy, and other related plan to enhance the marketing process according to the mission of organization.

These affect marketing department as marketing managers must make decision by considering all broad strategies and plans from various departments. This also helps to know customer wants and creates customer value.

• Suppliers: They provide resources to produce its goods and services for customers.

These affects marketing department as suppliers are connected in creating and delivering customer values.

• Marketing intermediaries: It helps company in promotion, selling, and allocation of products to the final buyers.

These can also affect marketing as it creates values in delivery network.

• Competitors: Marketers have to increase strategic benefit by positioning their help against competitors and by contributing in the minds of consumers.

This also affects marketing through marketing competitive strategy.

• Publics: The marketing includes community groups like financial public, government public, citizen action public, and local public.

Demographic trends of the market affect marketing in a micro-environment.

• Customers: Customers are a main important part of company micro-environment.

It affects the ability to serve the company’s customers, marketing intermediates, competitors, publics, and supplies.