Principles of Marketing : Chapter 3 (Market-Environment)

For the expansion of a company whether in a national market or international market, one should focus on its micro and macro environment. So Marketing environment consists of Micro (close to the company) environment and macro (wider aspect for company) environment.

Firstly, we going to discuss Micro-environment where different factors like the company itself, their suppliers, people who are in the middle (market intermediary), competitors, general public and most importantly customers. The most important part which is played in micro environment is executed by supplier. Since suppliers are the critical part in any firms supply chain. Various suppliers provide various products in different intensity. So company have to create value for them as well (like dispatch their payments on time) because if suppliers won’t provide your product on time there will a massive delay in your delivery and it won’t be available for the customer at the right time and you can lose your value and customer can shift it to the competitors. Further types of micro environment will be discussed in your class.

Macro environment consist of factors which are outside company and helps them to expand their operations nationally as well as internationally. Normally we put macro environment in terms of PESTLE analysis. Which stands for:

1) Political (In Pakistan there are major political instability, riots happen and people close main highways, due to which products won’t reach in time to the stores.  

2) Economic, it is very important for company to prevail forward, is to have a good economic environment. Since Pak rupee is devaluating day by day and prices of the commodities increase so company have to cater it by increasing their prices and can lose their customers and profits can decrease.

3). Social, it’s very important for companies to be highlighted in good terms. Re-cycled products, environmental products, fair-trade products are best example to be socially active.

4) Technology, another important component of macro-environment. To achieve massive competitive advantage, company should focus on tech part very seriously. Early adaptation of technology is very costly but helps the company to prevail in blue ocean strategy. JIO(reliance) is the example of introducing latest mobile data technology (4g and 5g) which undermined its competitors.

 5) Legal, to survive in this cut-throat competition the last thing you will do is not to complete legal obligations like taxes, Registrations (case of Starbucks in UK).

 6) Environment, Companies like PTC (Pakistan tobacco company) creates such product which is injurious to health but yet they use the strategy of CSR (corporate social responsibility)  to change consumers image regarding the negative aspect of environmental destruction.

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