MARKETING ENVIRONMENT–INTERNAL AND EXTERNAL ENVIRONMENT

Marketing isn't something that happens in a vacuum. 

Rather, they are carried out while taking into account a variety of factors and forces that can influence such activity.

These factors and forces are collectively called marketing environments.

More appropriately, Marketing environment can be defined as the sum of all indirect and direct factors and forces that affect an organization's ability to accomplish its marketing objectives.

It can also be defined as the combination of all internal and external forces that can impact a company's marketing strategy.

Generally, we can divide marketing environment into two types: Internal and external environment

INTERNAL ENVIRONMENT

In marketing, the internal environment refers to components of an organization marketing environment that are unique to it 

Generally speaking, marketers have control over the internal environment, which may be altered in response to changes in the external environment.

Internal environments include manpower, materials, machines, minutes, and money. These are commonly called the 5Ms of marketing.

1. Manpower: This consists of the organization's human resources that are devoted to implementing both existing and new marketing strategies.

It is made up of both skilled and unskilled employees who are responsible for putting a business' marketing ideas into action.

2. Material: This includes the factors of production and other materials required to sustain current marketing strategies as well as launch new ones.

In other words, it is made up of production materials used in creating the product that the company is marketing.

3. Machinery: This refers to the physical asset that is used to carry out the marketing strategy. 

An example of this machinery is a Customer relationship management (CRM) system, which is essentially a central place where businesses may store information relating to their customer, track customer interaction, and share that information with their colleague.

4. Minutes: This is essentially the time taken for the marketing strategy to be completed.

5. Money: This relates to finance and budget. It is simply the financial resource that the organization used to acquire and sustain its current manpower, machinery, materials.

EXTERNAL ENVIRONMENT

These are factors or forces external to the organization that the marketer has little or no control over.

These can be bifurcated into Micro and macro environment.

Microenvironment

This consists of all factors that are directly and closely related to a company's operation. They can impact how the company operates. 

The microenvironment is also called task or operating environment and may include Suppliers, customers, market intermediaries, competitors, owners, and the general public.

1. Suppliers: These are the people who supply the raw materials needed to make the product.

They are critical to the business as they can affect the product and pricing is decisions of the business.

It is, therefore, crucial to identify the available supplies in the market and choose the ideal one to satisfy the company's requirements accordingly.

2. Market intermediaries: These are involved in the promotion and distribution of the product of the organization. There are more or less related to the promotion and place mix of marketing.

Market intermediaries are very crucial to the success of an organization's marketing operation.

Being the closest to the consumer, they can make suggestions about a customer's desire for a product or service.

3. Customer: Every business exists to satisfy the needs and expectations of its customers.

Customers are the target market of an organization's marketing strategy. Therefore, an organization's marketing strategy should be customer-oriented.

This means a business should focus on understanding customer needs and tailor its product and services to meet these needs.

4. Competitor:  These are companies that target the same market as your company.

Keeping a close watch on competitors allows an organization to tailor its marketing strategy to the current market trends. This ensures that the company stays relevant.

5. Owners: These are individuals (s) who invested in the business and therefore, have ownership rights over the business. 

The owners of the business can be an individual as is the case of a sole proprietorship, a partner as is the case of a partnership, a member as is the case of a limited liability company, a shareholder as is the case of a corporation.

Regardless of the owner (s), every business seeks to maximize its owner's contribution. Therefore, marketing operations should be done keeping in mind the owner's return. 

To put it another way, marketing operation should maximize profit for its owner while also meeting consumer needs.

6. General public: in addition to the aforementioned stakeholders, a business marketing strategy is also influenced by society.

Besides making profits for its shareholder, a company's marketing strategy should stimulate positive social contact with society.

Simply said, marketing operations should not only achieve consumer and organizational goals; they should also promote the overall welfare of society. 

This perhaps explains the reason why companies are now drifting away from marketing orientation to the societal marketing orientation

Macro-environment

These include all factors that are external to the organization that cannot be controlled.

Macro-environment includes political and legal environment, economic environment, social-cultural environment, technological environment, and natural environment.

It is worth noting that the macroenvironment is also called general or remote environment.

1. Political and legal environment: Political climates, legislation, and other forms of government policies can have an impact on an organization's marketing strategy.

Because no company can operate successfully without complying with appropriate regulations, this environment has a significant impact on a company's marketing operations.

In addition, as the political atmosphere changes, various changes occur in the market, including changes in trade legislation, tax law, and failing to comply with these changes may result in the company's operation being penalized.

2. Economic environment: Of course, the ultimate aim of marketing is to satisfy consumer needs profitably. 

However, satisfying consumer needs profitably is dependent on various economic variables that affect consumers' purchasing power.

Such variable includes the interest rate, GDP, GNP, The current business cycle of the economy, inflation, recession, and unemployment.

When the unemployment rate is high, for example, consumers' purchasing power falls, resulting in fewer purchases.

Therefore, Companies should be aware of these economic variables to tailor their marketing strategy to suit current economic conditions.

For example, In the event of a recession, the marketing strategy employed should be different from those used during the period of inflation.

3. Sociocultural environment: Since every business operates in a society, there must have adequate knowledge of the beliefs, values, cultures, and public opinion of the society in which it is operating.

This ensures that the business adheres to marketing practices that are congruent to the beliefs, values, and culture of the society 

4. Technological environment: Development of technology and innovation also affect an organization's marketing operations.

As technology is advancing day by day, the technology environment is also changing.

Hence, businesses must stay updated in order to meet customer needs with more precision and remain relevant.

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5. Natural environment: To produce products, companies require raw materials.

The natural environment is essentially all factors that affect how sources source their raw materials.

Raw resources determine a company's ability to manufacture products and meet its marketing objectives.

The easier it is for a firm to access its raw materials, the easier it is to meet its marketing objectives; the more difficult it is for a company to obtain its raw materials, the more difficult it is to meet its marketing objectives.

To avoid difficulty in raw material sourcing, a company should source its raw material in a way that promotes positive contact with the community.

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