Identify one trend or force in each of the specified microen

Identify one trend or force in each of the specified microenvironments (the company, suppliers, marketing intermediaries, competitors, publics, and customers) and describe how it would affect \'your\' company. Example: Current CEO is retiring and the new CEO that has been selected as the replacement has a different management style; what is the effect on the company?

Solution

The factors of microenvironment:-

1. The competitors- The competitive environment consist of certain basic things which every firm has to take not of. No company howsoever large it may be does not enjoy monopoly. In the original business world a company encounters various forms of competition.

For example, a Phillips TV has a competitors as LG, samsung, videocon, sony etc. And the change in one company\'s policy affects the other in one way or the other.

2. Customers- According to Peter F. drucker, \" there is only one definition of business purpose, that is to create customer\". The busines enterprise aims to earn profit through serving the customer demand. It now thinks more in terms of profitable sale rather than more sales volume for its stake. Today marketing of a fim begins and also ends with the customer.

From the company\'s ponit of view it is always better to have customer from various groups and legions for that easily sustains demand for the company\'s product.

3. Suppliers:- Regarding the suppliers, the organisation can think of availing the required material or labour according to its manufacturing programme. It can adopt such a purchase policy which gives bargaining power to the organisation.

According to Michael Porter, \" the relationship between suppliers and the firms epitomises a power equation between them. This equation is based on the industry conditions and the exent to which each of them is dependent on the other.

Suppliers are either individuals, or business houses. They combined together, provide resources that are needed by the company. Now the company necessarily should go for developing specifications, searching for potential suppliers, identifying and analysing the suppliers and thereafter choose those suppliers who offer best mix of quality, delivery, reliability, credit, warranties and obviously low cost.

4. Public:- Literally word \' public\' refers to people in general. According to philip kotler \" A public is any group that has an actual or potential interest in or impact on a company\'s ability to achieve its objectives.\" The environmentalists, consumer protection groups, media persons and local people are some of the well known examples of publics.

The company has a duty to satisfy the people at large along with competitors and the consumers. It is an exercise which has a larger impact on the well being of the company for tomorrow\'s stay and growth. Create goodwill among people, help to get a favourable response for a company.

5. Marketing intermediaries:- Market intermediaries are either individuals or business houses who come to the aid of the company in promoting, selling and distributing the goods to the ultimate consumers. They are Middlemen (wholesalers, retailers and agents), distributing agencies, market service agencies and financial institutions. Most of the companies find, it is too difficult to reach the customers. In such cases, the agents and distribution firms help to reach the product to the consumer.