What is the marketing environment? Choose a firm and discuss why knowledge of the marketing environment would essential.© BrainMass Inc. brainmass.com December 24, 2021, 11:39 pm ad1c9bdddf
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Marketing environment refers to the internal and external forces that affect an organization and its ability to conduct business with its customers. The marketing environment consists of the macro environment and the micro environment. The macro environment consists of social, economic, political, technological, and legal influences. The organization cannot influence these forces. In contrast, the micro environment refers to the forces that impact a company and affects the organizations relationships (a). These include the direct competitors of the company, the suppliers and sources of the company, the distribution channels, present employees, customers, and the community (b).
For example, we will choose Whole Foods Market as a firm to examine. It is important for Whole Foods Market to know the marketing environment because they should be aware of the social factors that influence its customers to buy them. Furthermore, they must know government regulations related to natural and organic foods. Whole Foods Market must also understand the impact of a weak economy on the purchasing patterns of its customers. They must know the impact of changes in technology on its suppliers, customers, and competitors. Currently, Whole Foods Markets has been facing strong price competition from discount store giants such as Wal-Mart and Target. Whole Foods Market must have knowledge about such competitors and the effect of their low prices on its own sales. Similarly, the company must also know the needs and grievances of its own employees. This is essential to motivate their employees and to ensure that they are productive. It must also have a good knowledge about its current suppliers, sources, and potential suppliers. This will enable them to cut a good deal with suppliers so that they can keep their prices low and remain competitive and profitable.
(a) CIM Coursebook Assessing the Marketing Environment, Diana Luck, Routledge, 2008
(b) The Business and Marketing Environment, Adrian Palmer, Bob Hartley, E3, McGraw-Hill, 1999