The Marketing Environment
The marketing environment surrounds and impacts upon the organization. There are three key elements to the marketing environment which are the internal environment, the microenvironment and the macroenvironment. Why are they important? Well marketers build both internal and external relationships. Marketers aim to deliver value to satisfied customers, so we need to assess and evaluate our internal business/corporate environment and our external environment which is subdivided into micro and macro.
The macroenvironment is less controllable. The macro environment consists of much larger all-encompassing influences (which impact the microenvironment) from the broader global society. Here we would consider culture, political issues, technology, the natural environment, economic issues and demographic factors amongst others.
Again for Walmart the wider global macro environment will certainly impact its business, and many of these factors are pretty much uncontrollable. Walmart trades mainly in the United States but also in international markets. For example in the United Kingdom Walmart trades as Asda. Walmart would need to take into account local customs and practices in the United Kingdom such as bank holidays and other local festivals. In the United Kingdom 2012 saw the 60th anniversary of Queen Elizabeth II’s reign which was a national celebration.
The United States and Europe experience different economic cycles, so trading in terms of interest rates needs to be considered. Also remember that Walmart can sell firearms in the United States which are illegal under local English law. There are many other macroeconomic influences such as governments and other publics, economic indicators such as inflation and exchange rates, and the level nature of the local technology in different countries. There are powerful influencers such as war (in Afghanistan for example) and natural disasters (such as the Japanese Fukushima Daiichi nuclear disaster) which inevitably would influence the business and would be out of its control.
To summarise, controllable factors tend to be included in your internal environment and your microenvironment. On the other hand less controllable factors tend to be in relation to your macro environment. Why not list your own controllable versus uncontrollable factors for a business of your choice?
The internal environment has already been touched upon by other lessons on marketing teacher. For example, the lessons on internal marketing and also on the functions within an organization give a good starting point to look at our internal environment. A useful tool for quickly auditing your internal environment is known as the Five Ms which are Men, Money, Machinery, Materials and Markets. Here is a really quick example using British Airways. Looking internally at men, British Airways employees pilots, engineers, cabin crew, marketing managers, etc. Money is invested in the business by shareholders and banks for example. Machinery would include its aircraft but also access to air bridges and buses to ferry passengers from the terminal to the aircraft. Materials for a service business like British Airways would be aircraft fuel called kerosene (although if we were making aircraft materials would include aluminium, wiring, glass, fabric, and so on). Finally markets which we know can be both internal and external. Some might include a sixth M, which is minutes, since time is a valuable internal resource.
Let’s look at an example of how the internal environment would impact a company such as Walmart. We are looking at the immediate local influences which might include its marketing plans, how it implements customer relationship management, the influence of other functions such as strategy from its top management, research and development into new logistics solutions, how it makes sure that it purchases high-quality product at the lowest possible price, that accounting is undertaken efficiently and effectively, and of course its local supply chain management and logistics for which Walmart is famous.
The microenvironment is made from individuals and organizations that are close to the company and directly impact the customer experience. Examples would include the company itself, its suppliers, other marketing input from agencies, the markets and segments in which your business trades, your competition and also those around you (which public relations would call publics) who are not paying customers but still have an interest in your business. The Micro environment is relatively controllable since the actions of the business may influence such stakeholders.
Walmart’s Micro environment would be very much focused on immediate local issues. It would consider how to recruit, retain and extend products and services to customers. It would pay close attention to the actions and reactions of direct competitors. Walmart would build and nurture close relationships with key suppliers. The business would need to communicate and liaise with its publics such as neighbours which are close to its stores, or other road users. There will be other intermediaries as well including advertising agencies and trade unions amongst others.
Marketing Teacher designs and delivers online marketing courses, training and resources for marketing learners, teachers and professionals. View all posts by Tim Friesner
Macro environment Essays
1250 WordsMay 17th, 20155 Pages
Macro environment, one of the three key elements of the marketing environment explains the influences of broader societal forces. These major external forces are not controllable, but being aware of the environmental factors and its changes will be of great advantage for growing the business (Angela, 2012).
In the travel business, the operation does not depend only on the internal functioning but is also affected by external factors. Wotif is also affected by these internal and external factors. Macro environmental analysis is needed for Wotif to achieve their goals, increase their profit and improve their current strategies.
Political factors hugely affect the tourism business. It is important to analyse the political…show more content…
Despite the strong dollar, number of visitors from China has increased rapidly. China in Asia contributed to 17.3% of international expenditure in the financial year 2013-2014. Though, Wotif’s performance in the Asian market has been lacklustre.
It posted a lower profit this financial year due its under performing Asian business continuing to drag on earnings (O'Sullivan, 2013)
These economic factors will influence the tourism arena in the new financial year.
Australians are known for their love to travel and exploring new things. Australians are among the biggest-spending travellers in the world, second only to Saudi Arabians. Despite the fall of the dollar, Australians are showing no signs of changing their ''have passport, will travel'’ mentality (Upe, 2013)
St George-Melbourne Institute reported that nearly 60 per cent of Australians nominated holidays and travel as a key motivation for saving money, ahead of a deposit for a house, renovating, retirement, education, repaying debts, buying a new car or an expensive item for the house (Upe, 2013)
During Christmas, Australians are now spending on Christmas holidays instead of buying gifts. Travellers are more inclined to head overseas at Christmas than they were last year (Swallow, 2013)
In 2014-2015, Australia will be seen hosting major events including the