These factors include normally two types and they are external macro environment and the other is external micro environment.
They are described details below:
A. External Macro Environment
The external macro environment is effect in marketing activities indirectly. The elements of this environment are discussed below-
1. Demographic Environment
The demographic factors are used to segment the target population of the market for making effective marketing which an organization operates. The demographic environment differs from country to country and it is very important for business though it is an indirect action of marketing.
The elements of demographic environment are age structure, gender, income distribution, family size, education, religion, race and nationality and falling birth rate. These kinds of elements affect the organizational marketing activities indirectly.
2. Economic Environment
Economical environment consists of some elements like total national production, profit, commerce, interest rate etc. These kinds of elements affect consumers buying power and their buying form. The economic environment consists of factors that affect consumer buying power and their spending patterns.
The including elements of economical environment are customer’s revenue, savings, investment, availability of credit, interest rate, monetary contraction, unemployment, customs and taxes, inflation etc. The marketers have to take marketing activities by considering such elements.
3. Natural Environment
Natural environment consists of climate, weather, rivers, mineral resources, forest resources etc. Natural environment affects the marketing activities indirectly. The natural environment involves the natural resources factors that are needed as inputs for factories and natural environment affect by marketing activities.
4. Technological Environment
Technology environment consist of some elements by affecting tech and by this environment there are several new product is discovered. Technology can be defined as the good method for converting inputs to outputs with a specific task. Technology environment is the forces of factors that create new product of technologies and market opportunities. The importance of technology in marketing in business can not be said in one word. Actually, this age is the technological age. The business is growing quickly day by day with the help of technology.
5. Political Environment
Political environment is which that affects the operations of a company or business. These actions may be occurred on local area, regional, national or international level. In business the political environment is very important. If the political environment remains calm that will be the better for running business better. So, political environment affects the marketing activities or business activities indirectly.
Managers have to pay close attention always to the political environment because this actions of government will affect their business or company. So, the political environment consists of laws government and pressure group that influence or limit various organizations in a given society.
6. Cultural Environment
The cultural environment is made up by institutions or other forces that affect the society’s basic values, perceptions and behaviors. Actually, cultural environment in marketing is a set of beliefs, customs, practices and behavior that affect the business or organization for taking decision cope with the customers demand. International companies include an examination of the cultural environment of Particular County before doing their marketing activities and by giving prior to entering their target markets.
We can say in conclusion, for doing a product marketing these elements or forces affects the marketing activities indirectly.
B. External Micro Environment
External micro environment affect the marketing activity directly. The elements of this environment are describing below.
1. Market/Customers
A number of customer who are buy product called marked or customers. A market is the set of all things and potential buyers of a product. In general the terms customer, who is a person or organization that a marketer believes that will benefit from the goods or products that are offered by the marketer’s organization. A customer is not necessarily should be someone who is currently purchasing from the marketer.
Generally, the market or customer is the most important element for external micro environment. The main goal of the marketing organization is to make the full satisfaction of the customers. The company tries to give target on the consumer market, industry market, re-buyer market, international market etc. The marketers have to take decision by proper analyzing in these markets that I mentioned above.
2. Suppliers
A supplier is a party that supplies goods or services to another business. This party or entity is a part of the supply chaining system of a business, which may provide the great value of contained for its products. Sometimes supplier is called the input or output distributor. They are also called vendor.
A suppler is always like a manufacturer. Suppliers buy goods from multiple manufacturers and sell them to its target customers.
3. Marketing Intermediaries
Marketing intermediaries are the part of the supply chain between the manufacturer and consumer. They help a firm to promote of business, increase selling and make available a good or service through purchasing.
Businesses need middlemen to get their products to the specific place. Market intermediaries keep the channels of distribution open and flowing. They create place, time and possession utility for manufactures by ensuring the market condition, reducing market average cost, increasing availability of cash flow through financing and increasing consumer convenience.
4. Competitors
There are few business those have not any competitors. Business exists always in a competitive environment. Businesses compete with competitors in many ways. Normally, we understand the word competitor is a rival of any person against another person. But, in business, a company or company which offers a similar product or service is called competitors with that product. Competitors are businesses offering similar products or goods to the same customers at similar prices.
5. Public
A public is any group or party that has an actual interest in impact or on an organizations ability to achieve its goal or objectives. In public relations and communication is very important for business external micro environment. This helps in micro environment in business for maintain is very important. And this is a different concept to the sociological concept.
From the above discussion we can say that market or customers, suppliers, marketing intermediaries, competitors, public etc are very important for external micro environment.
