The Marketing Environment of Business Companies - Essay Example

Marketing Issues Portfolio Marketing environment is the forces and factors that affect a firm’s capa to build and maintain lasting and relationships with the customers. These forces also affect the loyalty of the customers and what they preach to other people when they leave the company. A marketing environment can either be a micro-environment (internal) or a macro-environment (external) environment. When a marketer in an company are considering the marketing strategies to take, it is always important to consider the environment that they are operating in as it directly affects the activities that the company will need to undertake so as to achieve their goals (Oldroyd, 2004). A micro-environment is the internal environment in which the company operates in. This environment is directly related to a given company and it affects a particular company at a given time because it is internal. These factors can be controlled or managed by the management of the company if the right measures are taken at the right time. These factors include; the company itself whereby it is found that different companies have different policies, management style and culture that regulate how business is conducted. As such each company in the economy has different objectives that they aim to achieve where some are growth oriented while others want to make profit as they reach their corporate responsibility goal. The company environment is important as it determines how marketing is done and activities controlled in the company. Suppliers are another micro-environment that affects how the customers receive the intended goods at the required time so as to increase their satisfaction. When selecting the suppliers, careful consideration has to be put into consideration to avoid any inconveniences that may affect the customers in a negative way, for example, the technology available to the supplier, their efficiency in delivering goods as well as the cost of their goods as this will affect the prices that are charged to the customers (Palmer & Worthington, 1992, p. 112). The third aspect of a micro-environment is the intermediaries or those parties that help link the company and its final customers. These parties ensure that the goods reach the customers at the convenience place and time and they play an important role in developing the customer loyalty, for example, the retailers. The customers to the company create another aspect of a micro marketing environment. They are important as they are the immediate users of goods and services provided by the company and they are the major determinants of the company success in the sense that they will be able to know when they are treated well and when not and react accordingly. The fourth factor of micro-environment is the competitors who are those companies who produce substitute goods to the goods produced by the company and the customers can easily shift to them. The company needs to understand the competitors’ strengths, weaknesses, opportunities and threats and maximize on their own strengths so as to try and bridge the gap between them or even become better than the competitors themselves and make sure that they gain a competitive edge against them. Macro-environment on the other hand is the external factors that affect the company in its quest to create and maintain customer loyalty. These factors are beyond the company’s control and the company can only develop ways and means to cope with them as they affect all the company in a given economy (Mercer, 1998, p. 47). These factors could be economical whereby different customers have different purchasing ability and they can purchase a given good at a particular time. This is due to wealth distribution among the people and the social class in which people operate. Another macro-environment aspect of marketing is the political setting of the country in which the company operates. This is affected by the laws and regulations that are set by the government concerning the business conducted by the companies, the taxation system and other by-laws that regulate the business in the country. These affect how a company conducts its business and how well they can relate with the customers in healthy way to meet their demands. The third aspect of this marketing environment is the demographic environment which is generally concerned with the social setting and the population make up of the target customers. This includes age of the population, size, gender, occupation and religion among others. This factor affects what is sold to a given people at a given time. This calls for the company to segment the market so as to meet different needs effectively (Golledge, 1997). Culture is an aspect of marketing that refers to strongly held beliefs by people and they affect what they do and buy. These factors affect how the company conducts the marketing activities without tampering with these cultures. Another aspect of macro-environment is technology whereby there are so much technological advancements and the company has to keep up with it so as to compete effectively in the market, for example, online marketing. When dealing with marketing, consumer behavior is an important aspect that cannot be ignored as it determines how the customers behave towards given situations that the company portrays and the goods that are produced and sold by the company. Consumer behavior is affected by various reasons and factors such as social relations with other members in an affiliate group as well as family, economic factors, psychological factors and physiological factors of the customers themselves. Buyer or consumer behavior is determined by the marketing environment that the company operates in, for example, the economic environment determines what the consumers can afford and what they cannot afford and they therefore take it as a luxury. This as well is taken in political, cultural, technological and demographic environment. So what really makes consumers to exhibit a given character towards a given company’s products? First, the demographics of the people affect their behavior to a big extent, for example, a population that consists of many children, the consumers are likely to buy so much of baby clothes and they will prefer the warm ones that have baby friendly fabrics. Psychological factors also affect the consumer behavior, for example, the level of motivation that the consumers have and also the attitude of these consumers. It is important to consider the attitude of these consumers before marketing activities can be started by the company (Oldroyd, 2004, p.152)). Another aspect that influences the consumer behavior is the personal factors such as level of disposable income, social class and personality. Different age groups will react differently towards given goods and services that are provided by a given company. The other factor that is likely to affect the consumer behavior is the past experience that the consumer has with a given product. This is especially when the product did not meet his expectation or it went far ahead to satisfy his need more that he thought. Either way, the customer will behave differently depending on how the product affected him or it will determine whether he will quit or stay with the usage of that good, for example, in cosmetics products (Kotler, 2012). Consumer behavior determines whether he will purchase a product or not. The purchase decision occurs in a sequential manner in all rational consumers. First, the consumers identify the need that they want to satisfy after which they search for the required information that will lead them to achieving their target need. This information, which could be from primary sources, for example, past experiences or secondary sources, for example, books and magazines, is later evaluated and the best course of action selected and a deliberate decision is made as to whether to purchase the product or not. This is followed by the actual purchase of the product which if it is found good, the consumer is likely to repurchase the product again (Baker & Wilkie 1992). Culture and sub-culture also affects the consumer behavior in a very significant way. Culture and cultural beliefs determines what is right and what is wrong according to a given society and people abide by these cultures without much questioning. According to (Hingorani, 1999) and (Solomon, 1996), culture determines what people consumes or how they dress although this trend is changing due to interaction between different cultures and the influence of technology on the people. These culture are so deeply held, for example, the Muslims and their pork eating denial, such that people believe that they are either wrong and they respond to it naturally. Where the consumers believe that something is right, they will behave differently as compared to when they believe it is wrong. The lifestyle that the people have will also affect their behavior as consumers and buyers. Those people who have a high profile lifestyle will behave differently, for example, to price changes as compared to low income earners in the society. It is not easy to predict the consumer behavior as their reactions towards different goods will vary from one time to another. It is important that the company conducts relationship marketing whereby they build a rapport with the consumers to determine what they really need and what they feel about the goods and services that are provided by the company (Haugtvedt, 2005, p. 117). When this is possible and done in the best way, it will ensure that the company creates a competitive edge from its customers by making goods that are tailor made to meet a given individual or group need. In conclusion, it is important for the company to understand the environment that they are operating in. this environment can either be internal or external and they both affect how the company creates and maintain lasting relationships with the customers so as to get full benefit from it. Internal environment are the factors that are within the control of the management of the company and they should be well managed to ensure that the company reaches its full potential (Dillon, 1990). This environment affects how the given employees to the company are motivated and the chance they are given so as to exhibit creative and innovative behaviors. This environment can be influenced in one way or another so as to suit the company. External environment on the other hand is difficult to change as it is from the forces outside the company’s control. It affects all the companies in a given economy and sometimes it is so adverse that the company may lose big if they are not well managed (Dillon, 1990, p.56). The company should do good market research to ensure that they are well protected just in case something bad happened to the company. It is important to note that consumer behavior is affected to a big extent by the environment that the company operates in. These behaviors and characteristics can either be internally instigated or externally instigated. The behaviors are also determined by the personal characteristics of the consumers whereby different consumers have different needs and personal traits that will determine how they respond to different situations (Hoyer, 2001). This calls for the company to evaluate their abilities and maximize on them so as to create a competitive edge from its competitors. This can be done by liaising with the appropriate institutions and parties that are directly affiliated to the company to know what they should actually do so as to be at a better position in the market place. The company needs to understand their weaknesses as well and find ways of overcoming them and making a difference in whatever they do. This will make sure that the company operates effectively and as efficiently as need be. Market segmentation will help in addressing the needs of consumers in a specialized way. Bibliography Dillon, W. R., Madden, T. J., & Firtle, N. H. (1990). Marketing research in a marketing environment (2nd ed.). Homewood, IL: Irwin. Hoyer, W. D., & MacInnis, D. J. (2001). Consumer behavior. Boston: Houghton Mifflin. Kotler, P., & Armstrong, G. (2012). Principles of marketing (14th ed.). Boston: Pearson Prentice Hall. Oldroyd, M. (2004). Marketing environment. Oxford: Elsevier. Palmer, A., & Worthington, I. (1992). The business and marketing environment. 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