Any company is created for profit. So that the company does not become unprofitable, there is a marketing management system that allows you to create products that are attractive to consumers. The success of the organization depends on the work of branches, divisions, departments, intermediaries and the actions of competitors. A successful marketer evaluates the firm's microenvironment and macroenvironment.
What is the microenvironment of the company
The surrounding marketing environment - the basic concept of marketing, includes a combination of subjects and factors affecting the competitive ability in the market. A properly organized company environment allows you to maintain good relations with customers.
The main marketing environment consists of a macro environment and a micro environment. The microenvironment of the company - these are entities that are directly related to the company and customers. The macro environment is represented by factors that the organization cannot influence. These are demographic, social, environmental and other indicators.
The main factors of the microenvironment
The marketing microenvironment of the company includes the following entities:
- suppliers;
- marketing intermediaries;
- competitors;
- customers
- contact audiences.
The microenvironment is divided into internal and external. Development of a marketing plan of the internal environment of the organization consists of the interests of all services of the company. The project is compiled annually for each unit of the enterprise structure.
Without the main factors of the microenvironment, the functioning of the company is impossible. Suppliers provide the company with the necessary resources. Marketing and resellers contribute to the promotion of goods to the final consumer. Clientele is a key link in the work of the company. Contact audiences facilitate interaction and product delivery to the customer. Competitors create a healthy environment and provide consumers with choices.
The main factors of the macro environment
Determine the microenvironment of the company factors within which the company sells a product or service. Factors include:
- demographic conditions (population, age, gender, distribution by region);
- Political and legal conditions include the rules followed by the company (regulations, laws, documents);
- natural and climatic conditions (location of the company);
- new inventions and achievements in the field of the enterprise;
- socio-cultural conditions (religion, language, customs, cultural values);
- socio-economic development (economic growth in a country and a region, size and dynamics of population incomes).
All macro environment conditions are important. The company is affected by the development and potential of natural resources, structure, density and population. The financial condition of buyers forms the pricing policy of the enterprise. The stability of market relations depends on the legal protection of the population. The introduction of new technologies contributes to the long-term development of the relationship between the organization and the end user. Traditions and cultural behavior of the population have a huge impact on the market.
Enterprise microenvironment
The internal microenvironment of a company is a combination of all departments and divisions of a company. It includes:
- accounting and financial services;
- production;
- supply;
- sales;
- department of research and development and design solutions.
Achieving marketing goals is possible with the close interaction of all enterprise services. The marketing service can influence all departments. Initially, they investigate the internal environment of the enterprise and identify the company's potential.
The microenvironment of the company is the potential of the company, the totality of opportunities and achievements that provide the company with a competitive advantage in the market. The potential of the company consists of the following parts:
- production or trading facilities;
- quality of goods sold;
- competitiveness;
- market share;
- the number of innovations introduced;
- payback time on investments;
- financial and credit resources;
- labor efficiency;
- the average duration of existence of the manufactured goods.
External microenvironment
The external microenvironment of a company is a set of objects influenced by the marketing department of a company. The objects include: suppliers, intermediaries, clientele, competitors, contact audiences. External microenvironment includes financial, informational and material groups, which are under the influence of the company.
When conducting industry analysis, the main object of study of the external microenvironment is economic activity. It covers the production, distribution and consumption of goods and services.
The attractiveness of the external microenvironment depends on the following components:
- rivalry among competitors;
- the threat of an increase in the number of competitive organizations;
- competition from cheaper products that can replace existing ones;
- the economic condition and trading ability of suppliers;
- solvency of buyers.
The marketing department should conduct research on the external microenvironment of the enterprise and determine the development program. The action plan consists of the steps:
- competitor analysis;
- customer analysis;
- supplier analysis;
- analysis of market barriers.
To determine the prospects of the company should highlight the key success factors on which the future and financial well-being of the organization depends.
Suppliers
Suppliers are a major factor in the microenvironment. The functioning of the company is impossible without providing the material resources that are required for the production of goods or services.
The marketing department must track the prices of the supply. Interruptions in the material, the unreliability of the supplier may adversely affect the reputation of the company or cause lost profits.
The quality of work largely depends on information about the supplier, its potential and ability to work with it. If the company requires a one-time purchase of goods, then reduced requirements are presented to the selection of the supplier.
In the relationship between the company and the supplier, the main condition is the ratio of price and ease of maintenance. Long-term relationships impose obligations on both sides, but a negative assessment of the supplier’s performance by the firm can destroy long-term obligations. There are no clear criteria for determining a good supplier. But some characteristics help to identify the positive aspects of the supplier:
- timely delivery;
- high quality;
- optimal price;
- stability;
- quality service;
- fulfillment of promises;
- technical assistance;
- informational interaction.
For a preliminary assessment of a potential supplier, third parties are involved who collaborated with him. Additional parameters for the formation of a common view are:
- deferment of payment;
- discounts;
- percentage of late deliveries;
- amount of short deliveries.
Marketing intermediaries
Intermediaries - legal entities or individuals that link the producer and consumer. Intermediaries can be divided into marketing and trading.
Marketing intermediaries are elements of the microenvironment of the company, are responsible for the promotion of goods and services. They ensure the movement of goods from the point of production to the point of purchase. These include marketing research agencies, advertising companies, consultation centers.
Resellers assist in finding customers, contribute to the choice of time, the procedure for acquiring goods and reducing costs. It’s more economical to choose an intermediary with a developed network than to create it yourself. It is not easy to choose a reseller; trading giants may not allow a manufacturer to enter the market.
Clientele
The main factor in the microenvironment of the company are customers. The firm should carefully study competitors and their degree of appearance in five types of competitive markets:
- The consumer market consists of individual individuals or families who purchase goods for themselves and do not have income from this.
- Consumer organizations that buy goods for use in the production of other goods or the provision of services.
- Resellers buy goods for resale and profit.
- Government agencies buy goods or services for use in activities or transfers to those in need.
- International buyers purchase goods outside the country of origin. Moreover, they can be both individuals and organizations.
Competitor
The firm’s marketing microenvironment includes competitors that have a significant impact on the actions of the marketer. Competition is divided into the following types:
- desire competitors that the end user wants to receive;
- commodity-generic competitors, thanks to which you can satisfy the desire of the consumer;
- commodity-specific competitors - a type of product that satisfies the consumer;
- competitor brands - different brands of the same product.
It is important for a marketer to study competitors and identify their strengths and weaknesses. Based on these data, a company development strategy is being developed.
A firm’s competitive microenvironment is an environment formed by competitors who produce similar products within the market. At the same time, a similar product that can replace the main view can become competitive.
Contact Audiences
Contact audiences are part of the microenvironment. The influence of microenvironment factors on the firm determines the ability to achieve goals. A contact audience may contribute or interfere with a customer service firm. The following types of audiences exist:
- charity (sponsors);
- required - the company is interested in them, but often to no avail (media, consumers, suppliers);
- an undesirable contact audience is uninteresting for the company, but it has to be reckoned with (competitors, tax authorities).
Microenvironment Controlled Factors
Among the controlled elements of the firm’s microenvironment are those that change under the influence of the organization’s management and are managed by the marketing department.
The decision to change the internal factors of the microenvironment is made by the company's management, but it is important for marketers to know only a part of them:
- The area of ​​activity of the company is what kind of product or service is provided to the end user.
- General goals set by company management.
- The functions of the marketing department within the organization, the impact on the activities of the company.
- The relationship between departments.
- Corporate culture, value system, rules, norms, relationships within the team.
The development goal of the company is determined by the management team, the task of the marketer is to manage the factors controlled by the firm’s microenvironment:
- Define the image of the company in the market, differences from competitors. Select the type of consumer to which the product will be directed.
- Choose a target market.
- Organize marketing by identifying it by type and type.
- Make a plan of marketing activities to achieve goals and satisfy the end user.
Communicative relations of the organization with the market
Uncontrolled factors determine the success of the organization and determine the degree of interaction of the environment in achieving goals.
The task of the company through the analysis to identify strengths and weaknesses and make, if necessary, changes in the marketing plan.
Contact with any other organization promotes the development of communication. The market gives money and information about whether the product is interesting to the end consumer. Communication with the market is organized through marketing research.