MARKETING ENVIRONMENT FRAMEWORK

MARKETING ENVIRONMENT FRAMEWORK 

MICRO ENVIRONMENT 

• Micro environment refers to the forces closely influencing the company and directly affect the organization’s relationships. 

The factors that directly affect the functions of the firm 

– Company and its current employees  

– Suppliers 

– raw materials, services 

– Intermediaries- wholesalers, agents, distributors, marketers 

– Competitors 

– Customers 

– Public 

• Financial Public – banks, shareholders, financial institutes 

• Local Public – community relationships 

• Media Public 

• These forces can sometimes be controlled or influenced and are explained in more detail in Porter’s 5 Forces. 

MACRO ENVIRONMENT 

• Macro environmental factors include social, economic, political and legal influences, together with demography and technological forces. These are referred to as the PESTEL factors. 

• The organization cannot control these forces, it can only prepare for changes taking place. 

• The external forces that affect both firm and competitors 

– Political – Policies, rules and regulations 

– Economical – income distribution, inflation, investment policy tax and interest rates 

– Social and cultural – religion and beliefs, ethics, age, social responsibility 

– Technological –CAD/ CAM, Internet, Virtual Shopping, ATM 

– Environmental – Pollution concerns, Health concerns, depletion of Natural resources 

– Legal – intellectual , consumer, environmental protection, mergers Acts 

                  

ENVIRONMENTAL CONTEXT 


• Familiarity with the different types of markets helps marketers to better understand the marketing environment they operate within. 

• The main types of customers are businesses, consumers, government bodies and employees. 

• Several transactions can occur between them, leading to the concept of consumer or B2C markets, Business or B2B markets, export markets, government or G2C markets, with each having their own specific profile. 

KEY CUSTOMER MARKETS 

• Consumer markets (B2C) are represented by individuals who purchase goods, products or services for their own consumption. 

They can be segmented into various groups taking into account factors such as age, education, location, attitudinal values, income, etc., meaning that various marketing strategies can be applied.

 Companies selling mass consumer goods and services (Ex: Food, air travel) 


• Business to business (B2B) marketing represents the sales process between organizations or institutions. 

Transactions in these markets are often more complex, the distribution channels are shorter and more direct with stricter product standards and specifications. 

Sell business goods and services to another business (Ex: Tires, cement)

• G2C markets (government to citizen) develop when governmental institutions become sellers and citizens assume the role of buyers. 

Sell goods/ services to non profit organizations with limited purchasing power like; religious institutes, universities, charitable organizations,  government agencies. Decide price carefully 

• Global Markets (Export markets) Sell products and services to global markets (licenser, joint ventures, franchising) 
• These interactions are becoming increasingly more specialized.  


• B2E (business to employee), a transaction that reflects what businesses do attract and keep their employees in terms of recruitment tactics, benefits and opportunities, plus E2B(employee to business). Others from the 

• digital arena include C2C (consumer-to-consumer) or P2P (peer-topeer), which represent the ability of online users to interact directly with each other, without the need for an intervening organization other than to facilitate the communication. 

• Ex: eBay, ikman.lk, etc..