ACTIVITY # 2

BSBA – 1E

Marketing Environments: Microenvironment, and

Macroenvironment

What is the Marketing Environment?

Marketing Environment - Encompasses all the internal and external factors that drive
and influence an organization's marketing activities.
A marketing environment is vast and diverse, consisting of controllable and
uncontrollable factors. A good grasp of your marketing environment helps to:

 Identify opportunities: Understanding your marketing environment helps you

notice and take advantage of market opportunities before losing your edge. For
example, say your marketing team sees an uptick in digital buying over in-shop
sales. You may decide to allocate more resources to your online marketing
funnel to drive more sales.

 Identify threats: Studying your marketing environment alerts you to potential

threats which may affect your marketing activities. For example, a market leader
could diversify their product portfolio to compete with your organization.
Foreknowledge of this can help you restrategize your marketing efforts to maintain
and grow your market share.

 Manage changes: Paying attention to the marketing environment also helps

manage changes and maintain growth in a dynamic economy. Marketing managers
can forecast and determine timely marketing campaign strategies by monitoring
their marketing environment.

Source:

Wrike.com
https://www.wrike.com/blog/what-is-marketing-environment/#:~:text=A
%20marketing%20environment%20encompasses%20all,that%20may%20affect
%20their%20work .
WHAT IS MICROENVIRONMENT AND MACROENVIRONMENT?

Microenvironment - refers to the environment which is in direct contact with the

business organization and can affect the routine activities of business straight away. It is
associated with a small area in which the firm functions.

The microenvironment is a collection of all the forces that are close to the firm. These
forces are very particular for the said business only. They can influence the
performance and day to day operations of the company, but for the short term only. Its
elements include suppliers, competitors, marketing intermediaries, customers and the
firm itself.

To understand Micro Environment more

 Suppliers are the ones who provide inputs to the business like raw material,
equipment and so on.
 Competitors are the rivals, which compete with the firm in the market and
resources as well.
 Marketing intermediaries may include wholesalers, distributors, and retailers that
make a link between the firm and the customers.
 Customers / Consumers are the ones who purchase the goods for their own
consumption. They are considered as the king of business.
 The firm itself is an aggregate of a number of elements like owners like
shareholders or investors, employees and the board of directors.
Macroenvironment -The general environment within the economy that influences the
working, performance, decision making and strategy of all business groups at the
same time is known as Macro Environment. It is dynamic in nature. Therefore it keeps on
changing.

It constitutes those outside forces that are not under the control of the firm but have a
powerful impact on the firm’s functioning. It consists of individuals, groups,
organizations, agencies and others with which the firm deals during the course of its
business.

To understand Macro Environment more

The study of Macro Environment is known as PESTLE Analysis. PESTLE stands for the
variables that exist in the environment, i.e. Political, Economic, Socio-cultural,
Technological, Legal and Environmental. These variables, consider both economic and
non-economic factors like social concerns, government policies, family structure,
population size, inflation, GDP aspects, income distribution, ethnic mix, political stability,
taxes, and duties, etc.
WHAT ARE THE DIFFERENCES BETWEEN MICROENVIRONMENT AND
MACROENVIRONMENT?

The following are the major difference between micro and macro environment:

1. The microenvironment is the environment which is in immediate contact with the

firm. The environment which is not specific to a particular firm but can influence
the working of all the business groups is known as Macro Environment.
2. The factors of the microenvironment affect the particular business only, but the
macro-environmental factors affect all the business entities.
3. The microenvironmental factors are controllable by the business but to some
extent only. However, the macroeconomic variables are uncontrollable.
4. The elements of the microenvironment affect directly and regularly to the firm
which is just opposite in the case of the macro environment.
5. The study of the microenvironment is described as COSMIC analysis.
Conversely, PESTLE Analysis is a study of the macro environment.

SOURCE:

Keydiffernces.com

https://keydifferences.com/difference-between-micro-internal-and-macro-external-
environment.html