1.3 Factors Comprising and Affecting the Marketing Env

• The marketing environment is comprised of both the external and internal factors and forces that influence an organization’s decision regarding its marketing activities.
• 2 Components of the Marketing Environment

  1. Internal Environment
  2. External Environment
• 2 Types of Internal Environment

  1. 5M Framework
  2. Organizational Culture
• 2 Types of External Environment

  1. Macroenvironment
  2. Microenvironment
• 5Ms of marketing (sometimes also called the 5M framework) is a marketing/management model that defines the elements of a marketing strategy that must be addressed in order to be successful.
• Minds: This “M” might well be considered the most important factor because it’s people who make sure the rest of the 5Ms are utilized in a productive manner to achieve the goals of the organization.
• Machinery consists of the equipment and/or physical assets used to process materials into finished or semifinished products.
• Materials consist of the inputs needed to produce goods and services.
• Money (Finance): Perhaps second only to staffing, money is a very critical resource because it’s used to acquire and/or hire other resources.
• Organizational culture is comprised of the shared values, attitudes, expectations, norms, and practices that guide the actions of all within the company.
• 5 Components of Microenvironment

  1. Suppliers
  2. Market Intermediaries
  3. Customers
  4. General Public
  5. Competitors
• Suppliers (sometimes also called vendors) are those partners from whom we receive the parts and products necessary for our business.
• Market Intermediaries. Often, products are distributed by third-party sellers such as retailers, wholesalers, and others in the distribution channel.
• Wholesalers purchase large quantities of products from producers and then sell to smaller businesses such as retail stores.
• Macroenvironment factors can be used to understand current external influences so that marketers can more easily identify what might

  change in the future, mitigate the identified risks, and take advantage of competitive opportunities.
• Environmental factors refer to variables affecting the physical environment, like climate change, pollution, the scarcity of raw materials, and the growing concern over companies’ carbon footprints.
• Legal Factors. These factors include changes to legislation impacting employment, industry regulation, licenses and permits, and intellectual property.
• Technological Factors. These factors encompass the innovations and developments in technology that impact an organization’s operations, as well as the rate of technological change.
• Social factors take in a wide swath of elements, such as cultural norms and expectations, health consciousness, population growth/decline, the age distribution of a population, and even career attitudes.
• Economic factors play a huge role in terms of a company’s prospects in a market.