Discuss Marketing Environment

Marketing environments are divided into parts: Micro environment and Macro environment. Micro environments are those that

firm level environment and on which firm may have control. On the other hand macro environment are those external environment upon which firm have no control and they impact on bigger way.

Micro environment: It includes customer, suppliers, competitors, distributor and firms own management.

Suppliers: Suppliers provides raw materials and other resources that firm required in order to producing a goods or services. Firm should choose a supplier who is able to provide right quality with minimum time periods.

Consumer/ Customer: Customer buys goods and services in order to satisfy their needs. Customer may be individual customer, ultimate consumer, industrial customer or even Government

Competitors: A firm faces completion every day. Competition may come from existing firm, potential new entrants or may be from substitute products.

Distributor: Distributors are those middle man helps the firms to reach its customer. Through various distributing channels goods are reaching to the ultimate consumer from production house. These middle men include retailers, whole seller, market intermediaries, dealers, etc.

Public: Public is also a micro environment factor that have influence on firm’s activities. Public gives opinion which help company to meet customer requirement easily.


Macro environment:  It includes Economic environment, political environment, demographic environment, technology and physical environment.

Economic: Economic factors include business cycle, interest rate, rate of inflation, GNP and GDP growth, rate of unemployment, investment levels, etc.

Political Environment: It environments have the following forces: political stability, government stability, ruling party’s attitude toward industry, trade union power, etc.

Technology: Technology environments means speeds of technology transfer, research and development, invention and innovations, product life cycle, new product developments, etc.

Legal Environment: A business has to operate within legal barriers. It includes anti-trust law, trade policy, foreign trade regulations, employment legislation, etc.

Environmental Factors: Sustainability, green issue, energy supply, etc. are the combined force of physical environment

Socio-Culture Environment: Demographics, life-style, social mobility, attitudes, consumer perceptions, education all fall under this environment.