Marketing Environment The market environment is a marketing term and refers to all of the forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers. Three perspectives of marketing environment: ?Macro environment ?Micro environment ?Internal environment Macro environment: This includes all factors that can influence and organization, but that are out of their direct control. A company does not generally influence any laws (although it is accepted that they could lobby or be part of a trade organization).
It is continuously changing, and the company needs to be flexible to adapt. There may be aggressive competition and rivalry in a market. Globalization means that there is always the threat of substitute products and new entrants. The wider environment is also ever changing, and the marketer needs to compensate for changes in culture, politics, economics and technology. Micro environment: This environment influences the organization directly. It includes suppliers that deal directly or indirectly, consumers and customers, and other local stakeholders. Micro tends to suggest small, but this can be misleading.
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In this context, micro describes the relationship between firms and the driving forces that control this relationship. It is a more local relationship, and the firm may exercise a degree of influence. Internal environment: All factors that are internal to the organization are known as the ‘internal environment’. They are generally audited by applying the ‘Five Ms’ which are Men, Money, Machinery, Materials and Markets. The internal environment is as important for managing change as the external. As marketers we call the process of managing internal change ‘internal marketing. ‘
Internal marketing environment of Food Bazaar in Ahmedabad: 1. The key feature of the internal environment of the food bazaar in Ahmedabad is cleanliness and hygiene. People give most importance to the hygiene factor when they go to shop food items. Indian people’s approach when they go for shopping is see-touch-feel. 2. This mindset of Indian people is fully satisfied by the food bazaar here. People can not only view the items but also ‘see, touch and feel’ the quality of the items which they want to buy. 3. They also feel comfortable while shopping here and take their own time for deciding on their choices.
They are continuously assisted by the staff of the bazaar that helps them by giving information about the items. 4. The food items in the bazaar are displayed strategically, so that more products are exposed to the customers while looking for related products like bread and butter. This will lead him to think and possibly buy other products. 5. There is also exhaustive stock of food items and the customers can shop for almost all the food items under one roof. 6. The prices of the food items are also economical and compete with the prices the customers pay outside the bazaar. . Seasonal discounts and various offers are introduced to lure the customers. Micro environment of food bazaar in Ahmedabad: The micro marketing environment mainly consists of consumers, stakeholders and suppliers. 1. The consumers of the food items of the food bazaar are the middle to high class people who has got a significant amount of monthly income and are wiling to pay a bit more for the better quality of food products. 2. The stakeholders are the owners as well as the partners and the associated companies of the food bazaar. eg. he owners of the food bazaar in Ahmedabad are Big Bazaar, Himalaya. The decision regarding to various operational activities of the food bazaar are taken by them like cash outflow decisions for advertising and other promotional activities. 3. The food items which are perishable are supplied by the local vendors whereas non perishable food items are supplied by various companies which supply them on time based agreements. Macro environment of food bazaar in Ahmedabad Political: The political climate in the state can be termed as “Investor friendly environment”.
The government provides enough incentives for the retail outlet to open further chains in the city. Economic: Per Capita income is high, implies the retail market can target the “upper middle class” strata of the society effectively. Socio-cultural: The social factors also do play a major role. The customer base mainly being people of Gujarat, the choice of goods is maintained accordingly. For example, as majority of the people are vegetarian, non-vegetarian items are literally non-existent. Technology: Effective use of Management Information System for keeping a track of position inventory and orders.