Micro Enviornment

Marketing assignment no.2

a) What are the main components of a company’s micro-enviornment ?

b) Explain how the factors and forces within the micro enviornment may effect a company’s ability to build and maintain successful relationships with customers.

The micro environment is a set of factors or elements in an organization's immediate area of operations that affect its performance and decision-making freedom. These factors include competitors, customers, distribution channels, suppliers, and the general public. Micro environment factors are factors close to a business that have a direct impact on its business operations and success. Before deciding corporate strategy businesses should carry out a full analysis of their micro environment.

The micro enviornment consists of five factors that effect it, which are competitors, intermediaries, publics, customers and suppliers. More specifically we are going to consider our customers, our stakeholders, our suppliers, our distributors, and our employees, all of whom make up our microenvironment. All organistaions require resources. Suppliers provide these supplies. They form an important link in the company’s overall customer value. Few companies deal with the final customer, rather they make use of marketing intermediaries. Publics is any group that has a direct impact on an organisation ability to achieve its objectives.

The market environment is a marketing term and refers to factors and forces that affect a firm’s ability to build and maintain successful relationships with customers. Successful relationships with customers are based on a lot of different aspects. When taking in consideration the micro environment, the factors within the company may affect this relationship alot.

When considering suppliers, they form an important link int he company’s overall customer value delivery system. They can have a serious affect on marketing since the suppliers’ products can have a significant impact on quality,...