1.

The Companys Microenvironment

As discussed earlier the companys microenvironment consists of six forces that affect its ability to serve its customers. Lets discuss these forces in detail:

a. The Company
The first force is the company itself and the role it plays in the microenvironment. This could be deemed the internal environment. All departments must think consumer if the firm is to be successful. The goal is to provide superior customer value and satisfaction.

b. Suppliers
Suppliers are firms and individuals that provide the resources needed by the company and its competitors to produce goods and services. They are an important link in the companys overall customer value delivery system. 1). One consideration is to watch supply availability (such as supply shortages). 2). Another point of concern is the monitoring of price trends of key inputs. Rising supply costs must be carefully monitored.

c. Marketing Intermediaries
Marketing intermediaries are firms that help the company to promote, sell, and distribute its goods to final buyers.

d. Customers
The company must study its customer markets closely since each market has its own special characteristics. These markets normally include: 1). Consumer markets (individuals and households that buy goods and services for personal consumption). 2). Business markets (buy goods and services for further processing or for use in their production process). 3). Reseller markets (buy goods and services in order to resell them at a profit). 4). Government markets (agencies that buy goods and services in order to produce public services or transfer them to those that need them). 5). International markets (buyers of all types in foreign countries).

e. Competitors
Every company faces a wide range of competitors. A company must secure a strategic advantage over competitors by positioning their offerings to be successful in the marketplace. No single competitive strategy is best for all companies.

f. Publics
A public is any group that has an actual or potential interest in or impact on an organizations ability to achieve its objectives. A company should prepare a marketing plan for all of their major publics as well as their customer markets.

The Companys Macro environment

The company and all of the other actors operate in a larger macro environment of forces that shape opportunities and pose threats to the company. It can be seen on the figure as well.

a. Demographic Environment
Demography is the study of human populations in terms of size, density, location, age, sex, race, occupation, and other statistics. It is of major interest to marketers because it involves people. Demographic trends are constantly changing.

b. Economic Environment
The economic environment includes those factors that affect consumer purchasing power and spending patterns. Major economic trends in the United States include:

c. Natural Environment
The natural environment involves natural resources that are needed as inputs by marketers or that are affected by marketing activities. During the past two decades environmental concerns have steadily grown. Some trend analysts labeled the specific areas of concern were:

1). Shortages of raw materials.

Staples such as air, water, and wood products have been seriously damaged and non-renewable such as oil, coal, and various minerals have been seriously depleted during industrial expansion.

2). Increased pollution

is a worldwide problem. Industrial damage to the environment is very serious.

3). Government intervention

in natural resource management has caused environmental concerns to be more practical and necessary in business and industry.

4). Environmentally sustainable strategies.

The so-called green movement has encouraged or even demanded that firms produce strategies that are not only environmentally friendly but are also environmentally proactive. Firms are beginning to recognize the link between a healthy economy and a healthy environment.

d. Technological Environment
The technological environment includes forces that create new technologies, creating new product and market opportunities.

e. Political Environment
The political environment includes laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society. Various forms of

legislation regulate business.

f. Cultural Environment
The cultural environment is made up of institutions and other forces that affect societys basic values, perceptions, preferences, and behaviors. Certain cultural characteristics can affect marketing decision-making.