Marketing Environment
This refers to factors that influence an organization ability to satisfy the customers need and wants. There are three types of environments.
1. Internal Environment.
2. Micro Environment.
3. Macro Environment.
Internal Environment
An organization’s marketing system is also shaped by internal forces that are controllable by management.
When competing with other firms, the strategy needs to be in place which essentially deals with the internal environment. The estimation for the right amount of internal resources in the internal environment is needed to go ahead and take up a project or else the project may result in undesired consequences.
Eg: Employees.
Company policies.
Capital assets.
The firm's structure and materials.
Most Sri Lankan students are trying their level best to study and to get a good job. A lot of young generation attract with the marketing environment because they know they can get a better income with commissions. So companies also try to give good oppournities to the employees to grow their business spread all over the Sri Lanka. Those companies arrange motivation projects to grow up the employees marketing skills.
Eg : MAS Holdings providing expenses to study and to improve the skills.
Micro Environment
The micro environment is made up of factors that are close to the firm and affect it on a day to day basis; usually these factors interact with the firm or are involved in the same industry.
Eg: Customers.
Banks.
Trade unions.
Distributors.
Suppliers.
Competitors are also part of the micro environment because they are selling competing products & services; their activity could have a direct impact on the firm's daily business. Some of the factors within the micro environment can be controlled whilst but others cannot.
To attract customers most of the Sri Lanka companies started to do marketing campaigns to rural areas as well.
(Eg: Signal – Sinabo Wewa)
Suppliers providing credit facilities according to the bank guarantee
Macro Environment
The macro environment is made up of factors that affect the firm on a long term basis. In general macro environment factors are not close to the firm. Micro environment factors could be national or global measures and affect many industries and groups.
Eg: Legislation,
The economy (e.g. recession, inflation, VAT changes),
Technological change such as the internet.
And this refers to a series of external factors over which has about no control or it has very little control. The PESTEL frame work can be used to understand this environment.
01. Political - these factors include political relations between governments and other governments, terrorist problems and government policies.
In Sri Lanka after 2009 war ended most of the terrorist problems solved and that effect to the country economy. More foreign investments coming in to the country, government try to reduces the taxation policies to attract more and more foreign investors to come to Sri Lanka, and Sri Lankan government highly concern about the tourism industry growth for that they are developing a good marketing environment in Sri Lanka.
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02. Economic factors – this refers consumer spending power, current situation of the economic cycle, exchange rate factors.
Sri Lanka’s economy growing up after 2009 war ended, but the exchange rates are not stable as yet, but for the exporters in Sri Lanka have better business opportunities with this economy situation.
03. Social factors - changes is population, age group, taste of consumer will have the impact an organization.
In Sri Lanka before starts a marketing campaign has to check twice, whether it’s damaged Sri Lanka’s culture and religious activities because all the Sri Lankans concentrate about that stuff.
(Eg : “Bodu bala Sena” organisation & etc are now attached with Buddhist and forcing to private sector not to damage the religions.)
04. Technological factors- these factors include looking at growth of internet usage growth of mobile communication, popularity of social networks & etc.
In Sri Lankan there is well growth marketing environment for internet and mobile communication, most of the companies launched their websites, Facebook fan pages to attract more customers. Most of the companies starting there company websites when the time of registering in company in Sri Lanka. In that way there is good technical effect created in Sri Lanka.
05. Ecological - these factors included environment concern such as global warming, rainforest conservation, preventing environment pollution & etc.
In Sri Lanka lot of companies trying not pollute the country. As an example Brandix started eco factory. Sri Lankan government also put a lot of regulations to keep the country eco friendly.
- A one off media story about the firm may affect daily operations and will therefore be part of the firm's micro environment;
- Whilst a general desire to avoid a negative media story may influence a firm's long term business operations and therefore make up the firm's macro environment.
- Firms should not concern themselves too much about which of the three categories a factor fits into. Instead firms should ensure that they have correctly identified all of the factors which make up their marketing environment and plan how to manage them for the firm's benefit.
(Eg : Today Sri Lankan Media has improved their technical skills, it’s very important to do the marketing to create a better business environment.
A lot of advertising companies situated in Sri Lanka to create good marketing environment in Sri Lanka.
Thank you for joining with me, meet with you a new post.
OSHADA JAYATHILAKE
OSHADA JAYATHILAKE