The Company’s Microenvironment

By -

The Company’s Microenvironment

Marketing management’s job is to build relationships with customers by creating customer value and satisfaction. However, marketing managers cannot do this alone. Marketing success will require building relationships with other company departments, suppliers, marketing, intermediaries, customers, competitors, and various publics, which combine to make up the company’s value delivery network.

Marketing
The Company
Suppliers
Marketing intermediaries
Competitors
Publics

 
The Company

In designing marketing plans, marketing management takes other company groups into account-groups such as top management, finance, research and development (R&D), purchasing, operations, and accounting. All these interrelated groups form the internal environment. Top management sets the company’s mission, objectives, broad strategies, and policies. Marketing managers make decisions within the strategies and plans made by top management. Marketing managers must work closely with other company departments. Other departments have an impact on the marketing department’s plans and actions. And under the marketing concept, all of these functions must “think consumer.” They should work in harmony to provide superior customer value and satisfaction.

Suppliers

Suppliers form an important link in the company’s overall customer alue delivery system. They provide the resources needed by the company to product its goods and services. Supplier problems can seriously affect marketing. Marketing managers must watch supply availability supply shortages or delays, labor strikes, and other events can cost sales in the short run and damage customer satisfaction in the long run. Marketing managers also monitor the price trends of their key inputs. Rising supply costs may force price increases that can harm the company’s sales volume.

Most marketers today treat their suppliers as partners in creating and delivering customer value.

Marketing Intermediaries

Firms that help the company to promote, sell, and distribute its goods to final buyers; they include resellers, physical distribution firms, marketing service agencies, and financial intermediaries.

Customers

The company needs to study five types of customer markets closely. Consumer markets consist of individuals and households that buy goods and services for personal consumption. Business markets buy goods and services for further processing or for use in their production process, whereas reseller markets buy goods and services to resell at a profit. Government markets are made up of government agencies that buy goods and services to produce that need them finally, international markets consist of these buyers in other countries, including consumers, producers, resellers and governments. Each market type has special characteristics that call for careful study by the seller.

Competitors

The marketing concept states that to be successful, a company must provide greater customer value and satisfaction than its competitors do. Thus marketers must do more than simply adapt to the needs of target consumers. They also must gain strategic advantage by positioning their offerings strongly against competitors offering in the minds of consumers.

No single competitive marketing strategy is best for all companies. Each firm should consider its own size and industry position compared to those of its competitors. Large firms with dominant positions in an industry can use certain strategies that smaller firms cannot afford. But being large is not enough. There are winning strategies for large firms, but there are also losing ones. And small firms can develop strategies that give them better rates of return that large firms enjoy.

Public

Any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives

Popular posts from this blog

Model of Consumer Behavior

By -
Model of Consumer Behavior Consumers make many buying decisions every day. Most large companies research consumer buying decisions in great detail to answer questions about what consumers buy, where the buy, how and how much they buy, when they buy, and why they buy. Marketers can study actual consumer purchases to find out what they buy, where, and how much. But learning about the whys of consumer buying behavior is not so easy- the answers are often locked deep within the consumer’s mind. “For companies with billions of dollars on the line, the buying decision is the most crucial part of their enterprise,” states one consumer behavior analyst. “yet no one really knows how the human brain makes that choice.” Often, consumers themselves don’t know exactly what influences their purchases. “Buying decisions are made at an unconscious level.” Says the analyst, “and … consumers don’t generally give very reliable answers if you simply ask them, ‘Why did you buy this?”
Read more

BUSINESS USE OF THE INTERNET

By -
BUSINESS USE OF THE INTERNET This should give you a good idea of how versatile the internet is as an information technology platform on which to base a variety of business strategies. You could group the ways that companies are using the internet for business into a few major application categories. 1. Interactive marketing Because of the internet, marketing a company and its products and services has become an interactive process. The internet and the web enable companies to create a dialog with customers through online discussion groups, bulletin board, electronic questionnaires, and mailing lists and E-mail exchanges. Thus customers can be interactively involved in the development marketing, sales and support of products and services, along with a company’s market researchers, product designers, marketing and sales staff, and support specialists. 2. E-Commerce The internet, the World Wide Web, and internet-based technologies such
Read more

what is Islamic Tijarah? Its Importance, Appreciation, and Exhortation to business.

By -
Image
Islamic Tijarah “Transaction of goods and services according to the Shariah” A good, successful and flourishing business depends very much on the sincere efforts and persistent hard work of the businessman. Therefore, any discussion of the Quranic attitude to Tijarah (business) ought to be preceded by explication of its attitude to Amal in general. Business is also a necessary and beneficial activity; therefore, its importance in the eyes of the Quran is understandable. Our aim is to explore what the Quran has to say about business activity in particular. Importance of Tijarah The importance of business is evident not only from the express statements but also from the attitude and the special consideration accorded to it by the Quran as we shall see below. 1. Frequent Use of Business Terminology The Quran has made and extensive use of business terminology. Commercial terms, belonging to twenty different stems, occur in the Quran about 370 times. C.C. Torrey
Read more