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These groups consist of the top management, research and development, purchasing, operations, accounting, and finance. These groups form the firm’s internal environment. The top managers define the firm’s mission, objectives, board strategies, and the firm’s policies. It is the duty of the marketing managers to oversee the mission, as well as the objectives of the top management. The suppliers form an integral part of a firm’s micro environment, because they are the main link to the firm’s customer value delivery system.
It is the suppliers who stock the firm with the eateries that the firm need, to produce its final products. Marketing managers are put in charge of monitoring the supply of stock, as well as monitoring and price trends. The market intermediaries are firms who help sell, promote, and distribute the firm’s final goods. These intermediaries are made up of 4 different groups, resellers, physical distributors, market service agencies, and financial intermediaries. It is the job of the resellers to help the firm to sell the products, as the firm has given these sellers the stock to sell.
The physical distributors help the firm transport their goods from their origin, o their final destination. The marker servicing agencies are agencies which help the firm market their product, by means of advertising and promoting. The financial intermediaries are firms such as banks, which help the firm with their finances, such as transactions. The firm’s customers consist of anybody who purchases firms final products, and there are 5 different customer markets. The consumer market are the individuals and households which purchase a firms final product for personal use.
The business market purchases the firms goods to use in their processing stage in developing their own goods. Resellers buy and sell products to make a profit. Government markets buy firms final products to use for their own development, or to distribute to the public of their choosing. Finally, the international market, are any oversees country a firm does business with, the also include consumer, business, reseller, and government markets. Competition for the firm is very important, as it is because of competition that firms learn to better their products in order to sell final products.
A firm needs to stay ahead of its competitors in order to gain a strategic advantage over their rivals. The public refers to any group, which affect the firm’s ability to achieve its objectives, such public include, financial public, media public, government public, citizen action public, local public, general public, and internal public. Each public affects the firm in different ways, and these public ranges anywhere from banks to employees. The firm’s macro environment consist of 6 different actors which affect the firm in a different way to the micro environment actors.
These actors are the firm demographic forces, the economic forces, natural forces, technological ores, political forces, and the cultural forces. Demography refers to the study of people, so it is important for a firms demographic environment to monitor people to determine what their interests are with regards to their preferences. Marketers need to study people as people are the ones who make up the markets, therefore marketers need to study the different trends, which include the different age structure, which consist of baby boomers, generation y, and generation x. He firms also need to be aware of the consumers family trends, increasing diversity, and geographic shifts in the population. The economic environment is important because firms need to know what their consumer’s income and purchasing powers are. The markets are mainly influenced by a person’s ability to purchase, so people with different purchasing powers effective buy different products at different price range. Therefore the firm’s main focus should be on the changes In consumers income, as well as their purchasing power.
A firm’s natural environment is made up of the raw materials in which firms use to produce their final products. This becomes a big problem with regards to the declination of their raw materials, that why, the main problems which occur here are based on the factors. The shortage of raw materials, the increase in pollution, and the increase in government intervention pose serious threats to a firm’s economic environment. The technological environment is one of the most important.
Technology is continuously changing and it’s up to us to decide whether to view technology as positive or negative. Firm’s need to make sure, that their product is safe for consumer purchase. The political environment of a firm is becoming a lot more difficult with regards to the law and intervention Of the government. They need to be ware of increasing legislation, cause-related marketing, social responsible behavior, and increased ethics and social responsibly actions.