7.

0 Roles of marketing in context of the marketing environment

The individuals and forces beyond marketing that have an impact on marketing
management's capacity to develop and sustain productive relationships with target
clients is known as marketing environment (Kotler and Armstrong, 2017). It is helpful
for brands to understand how internal and external factors affect marketing
operations in order to better position emerging products and how to reach a target
market (MasterClass, 2022).

7.1 Internal environment

The phrase ‘internal environment’ is used to describe a company's culture,
technology, operational processes, management, and dynamics. It includes every
aspect that makes up an organisation. Creating a secure internal environment is a
crucial first step towards development and profitability as it can promote positive
employee behaviour. Internal elements of an environment include owners,
managers, and employees. Organisational structure, company values, and company
culture are some factors that influence the internal environment of an organisation
(Indeed, 2022).

Organisational structure Companies require an organisational

structure to provide a certain hierarchy
and management framework that
will enable employees to execute their
work effectively and efficiently (Indeed,
2022).
The organisational structure of Unilever
is based on product divisions. Based on
the emphasis on particular products, the
organisation is split up into different
sections (Young, 2018).

Organisational structure A company's value system can involve

its management framework, culture,
business practises, and any additional
factors that assist it to create a unique
impact on its industry (Indeed, 2022).

Always working with integrity, positive

impact, continuous commitment, setting
out our aspirations, and working with
others are the values of Unilever
(Vomma, no date).
 Company values A company's value system can involve
its management framework, culture,
business practises, and any additional
factors that assist it to create a unique
impact on its industry (Indeed, 2022).

Always working with integrity, positive

impact, continuous commitment, setting
out our aspirations, and working with
others are the values of Unilever
(Vomma, no date).

7.2 External environment

The elements beyond an organisation that may have an impact on its activities,
consumer behaviours, and relationships are referred to as the external environment.
The external environment is of two categories. They are microenvironment and
macroenvironment (MasterClass, 2022).

7.2.1 Microenvironment
The individuals who are close to the organisation and have an influence on its ability
to interact with and provide for its consumers form the microenvironment (Kotler and
Armstrong, 2017). It is comprised of suppliers, customers, marketing intermediaries,
competitors, and the public (Ali and Talwar, 2013).

Suppliers Suppliers are an essential part of the

company's overall network for
generating value to consumers. They
provide the organisation the resources it
requires to produce its goods and
services (Kotler and Armstrong, 2017).
Unilever partners with those who share
their values in order to create long-term,
sustainable growth. Suppliers to
Unilever also contribute to the growth
and value creation of both the company
and its partners (Unilever, 2023).

Customers The aim of the whole delivery system of

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 an organisation is to attract target
customers, who is the main factor in the
microenvironment, and build strong
relations with them (Kotler and
Armstrong, 2017).
Unilever, which was ranked 69 out of
the top 100 global brands in 2022, has
an 82% customer satisfaction score and
an 84% customer loyalty rate. Unilever's
ability to satisfy its consumer base with
their products is likely the cause of
these high figures (Comparably, no
date).

Marketing intermediaries Marketing intermediaries support the

organisation in distributing, selling, and
promoting its products to final
consumers. They consist of
retailers, physical distribution
companies, marketing service
providers, and financial intermediaries
(Kotler and Armstrong, 2017).
Unilever markets its products through a
variety of marketing intermediaries.
Retailers are some of this organisation's
primary marketing intermediaries. Due
to the marketing intermediaries, all
Unilever items can be easily accessed
in several stores across the globe
(Unilever, 2023).

Competitors An organisation must outperform its

competitors in terms of customer value
and satisfaction in order to succeed
(Kotler and Armstrong, 2017).
Unilever distinguishes itself from
competitors by fusing its global strategy
with the local community to draw
customers who are drawn to the items
that are well-known globally while
retaining their local flavour. For
instance, Hindustan Unilever has
evolved into one of the most popular
brands among Indian consumers. Its
link with middle-class values and an
old-fashioned essence is the foundation

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 of this success (Moolchandani, 2021).

The public Any group that may have a genuine or

potential interest on an organisation's
capacity to accomplish its goals
is considered a member of the public
(Kotler and Armstrong, 2017).
One technique Unilever uses to
maintain strong links with the public is
through donations. Following the
announcement that food banks in the
United States were experiencing stock
issues, Unilever contributed $13 million
worth of products in 2022. Unilever
also provided cleaning supplies for
homes and personal care for
communities in need in addition to
contributing food items (Herrera, 2022).

7.2.2 Macroenvironment
According to Kotler and Armstrong (2017), the larger societal forces that have an
impact on the microenvironment form the macroenvironment. These factors are the
primary external and uncontrollable factors that have an effect on an organisation's
decision-making, performance, and strategy (Max, 2022).

7.2.2.1 PESTEL analysis

The PESTEL analysis is a framework or method used by marketers to examine and
observe the macroenvironmental elements that have an impact on an organisation.
This acronym stands for political, economic, social, technological, environmental,
and legal factors (Professional Academy, 2022).

Political factors Political factors refer to the methods

and level of government intervention in
economies and organisations. The
government uses political factors such
as trade barriers, taxes, political
stability, and international relations to
intervene (Indeed, 2022).
The regulatory limitations and standards
established by the European
Commission and the Food and Drug
Administration in the United States of

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 America are applicable to Unilever.
Additionally, the organisation must
follow all national, state, and local laws
in Europe as well as any international
guidelines adopted in any nation where
its goods are sold. Not following these
regulations would lead the organisation
to face both civil and criminal charges
(Frue, 2017).

Economic factors Economic factors can have a direct

impact on the operations and revenue
of organisations (Indeed, 2022).
Due to the situation of the economy,
customers are more likely to purchase
inexpensive goods. If there is
no demand for the products, Unilever's
cash flow and revenues will suffer since
consumers directly influence the supply
of goods. However, as Unilever
operates in several markets, if one
struggles, another one could perform
well (Frue, 2017).

Social factors Social factors, also referred to as socio-

cultural factors, reflect the population's
demographics, beliefs, attitudes, and
customs. These elements assist
organisations in understanding the
characteristics and motives of potential
customers (Indeed, 2022).
Unilever displays a strong desire to
assist people in being themselves and
looking beautiful while also leading the
life they deserve since many of its
products are focused on personal care
and wellbeing (Frue, 2017).

Technological factors The use of technology by businesses

and industries to produce and market
goods and services or manage
operations is represented by
technological factors (Indeed, 2022).
Unilever regularly manufactures new
items and markets them online under
each of its brands. Especially in

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 comparison to its rivals, Unilever has a
higher level of automation (Frue, 2017).

Environmental factors The effects that changes in the natural

environment may have on organisations
are referred to as environmental factors
(Indeed, 2022).
Unilever encourages the use of
renewable and sustainable resources.
They want to be recognised as an
organisation that cares about the
environment, thus their products are
made to be safe for consumers in every
place they are distributed (Frue, 2017).

Legal factors The laws of the country in which an

organisation is located are known
as legal factors. To make sure that local
and national laws are followed,
businesses must keep up with
legislative developments (Indeed,
2022).
Unilever is bound by numerous rules
and legal requirements. Each brand and
retail locations are required to abide by
regulations regarding copyrights,
product safety, employee health and
safety, and taxes (Frue, 2017).

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