The marketing environment refers to factors and forces that affect a firm's ability to build and maintain customer relationships. It has two components: the internal environment of forces inside the firm and the external environment outside of the firm's control. The external environment includes the micro environment of stakeholders that directly influence the firm like customers, competitors and suppliers, and the macro environment of uncontrollable forces like demographic, economic, natural, technological, political and cultural factors that indirectly affect the firm. Understanding how these internal and external factors interact is important for developing marketing strategies.

2. What is Marketing
Environment
Marketing term refers to factors and forces that affect a firm’s ability to
build and maintain successful relationships with customers.
Components of Marketing Environment:
Internal Environment:
Forces and actions inside the firm that affect the marketing operating
activates composed of internal stake holders and the other functional
areas within the business organization.
External Environment:
1. Micro Environment
2. Macro Environment

3. 1- Micro Environment
• It have emotional impact the entity directly
• Not under the full control of business
• The business is influence by this environment.
Components:
1. Company
2. Supplier
3. Intermediaries
4. Competitors
5. Customers
6. Public

4. 1- Company
This Include:
1. Contain Board of Directors and functional managers.
2. Finance R&D, purchasing, operation and accounting
3. Company Mission, objectives, Strategies and polices
4. Resources, Organizational Structure.

5. 2- Suppliers
This Include:
1. Suppliers form an important link in the company overall
customer value delivery system.
2. They provide the resources needed by the company to
produces goods and services.
3. Suppliers problem can seriously affect marketing
4. Most marketers treat suppliers like partners.
5. Marketers must watch supply availability and pricing
Right Product = Quality+ Price + Timely

6. 3- Intermediaries
This Include:
1. They are either business houses or individuals
2. They help the company in promoting, Selling and
distributing the goods to customers
3. They are middlemen, distributing agencies, market
service agencies and financial institution.

7. 4- Competitors
• No Company stands alone in serving and satisfying
the needs of a customer market. It faces competition.
• This helps the company in facing a host of
competitors with confidence.
• It represent company reputation.
• It is also based on SWOT

8. 4- Customer
Basically five types of target market
Consumer market: Individual and Householders.
Industrial Market: Company Buying for producing other
and services.
Government and other non profit market.
International market: Individual and Company of
nation other then home land who buy for either
consumption or industrial use.

9. 5- Public
Any group that has an actual or potential interest in or
impact on an organization ability to achieve its
objectives.
A Company should prepare a marketing plan for all of
their major public.

10. Macro Environment
External and uncontrollable factors that influences an
organization decisions making and affect its
performance and strategies.
Components of Macro Environment:
1- Demographic
Study of human population in terms of size, age,
location, gender, occupation and other statistics.
2- Economic
Factors affecting consumers purchasing power and
spending patterns both across and with their market.

11. 3- Natural
Involvers the natural resources that are needed as inputs
by marketers or that are affected by marketing activates.
4- Technological
Forces that create new technologies, create new product
and market opportunities
5- Political
Consist of laws, government agencies', and pressure
groups that influence and limit various organization and
individuals in the given society.

12. 6- Cultural
Environment is made up of institutions and other forces
that affects a society basic values, perceptions,
preferences and behaviors.
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