Environment: The area in which something exist or live, the totality of a surrounding.
Types:
- Microenvironment
- Microenvironment
Microenvironment:
It is the internal environment of a company. The main three elements includes
- Suppliers
- Customers
- Competitors
Suppliers: Suppliers are the people which provide the raw materials and resources needed for the company. The marketers should have good relations with more than one suppliers.so that if one suppliers is refusing to supply the raw materials then the second option is also availiable.so that they can generate as much revenue as they can.
Customers: The key to build a profitable business is to access the needs and interests of your customer as much as you can.Then marketers will produce the products according to the needs and interests of the customers.
Accessing the right kind of customer is the second most important thing, unless you are not aware of your target market you can generate profits. Because the customers are the actual buyer of our products.
Competitors: The most important goal of a company is to take an edge over their competitors. For this purpose the marketers do SWOT analysis. It helps the marketers to develop new strategies for the future. The marketers also watch the strategies develop by their competitors and develop different and innovative strategies.
Macro environment:
It is the environment that is outside the company. The external environment is not in the control of the company. The external factors include the external forces. Individuals, agencies, conditions, economy, technology.
Basic Elements include:
Demography
Politics
Economy
Technology
Marketers keep in mind each one of these to excel in the market.
Demography: The demography includes the basic factors of the society i-e age,culture,population.ethenicty,etc.Marketers study the demographic changes very deeply to access the actual market of their product. Then they target the specific demographic area. If marketers develops a good analysis then they will be successful in creating revenue.
Politics: Politics plays an essential part in markets situation. Marketers have to keep in mind the political situation of the country. The rules and policies which are being followed in the country, then they decide to launch their product in the market. If marketers does not follow the rules and polices then their product could not be success full in the market.
Economy: Economic situation of country is very important in marketer’s point of view. Price strategies are decided by the current rate of the currency, marketers check out the local currency rate as well as foreign currency and also estimate the future currency rate.