In marketing, the microenvironment refers to the specific forces that are part of an organizations marketing process but external to the organization. These factors include customers, suppliers, competitors, marketing intermediaries, and the public. The microenvironment is a mix of factors and forces that impact a companys ability to succeed while ensuring customers get high-quality products and services. Understanding the effects of the microenvironment on marketing can help a business thrive and grow.
Microenvironmental factors are local, affecting a company but not necessarily the rest of the world. For example, if a company is dependent on its suppliers and they are not dependent on the company, the suppliers have a lot of influence. If they jack up their prices sharply or delay shipment, the companys marketing has to explain that to customers. Similarly, competitors also affect a companys microenvironment, and a companys strategy has to consider whether it competes on price, customer service, or quality.
To accomplish success, a company needs to build meaningful relationships with other departments within the organization, competitors, and marketing intermediaries. The job of the marketing manager is to build relationships with customers by creating value and satisfaction, and their success means that they need to build strong relationships with other departments, with suppliers, etc.
In summary, the microenvironment in marketing includes customers, suppliers, competitors, marketing intermediaries, and the public. It is a mix of factors and forces that impact a companys ability to succeed while ensuring customers get high-quality products and services. Understanding the effects of the microenvironment on marketing can help a business thrive and grow.
