MARKETING MICRO-ENVIRONMENT Microenvironment refers to the forces closely influencing the company and the organization's relationship. It includes forces that internal to the company or those that are relevant to its operation. It is composed of the company itself, its suppliers, market intermediaries, customers, competition and its various publics. 1. The company - the top management defines the company's, mission, objectives, strategies and policies. 2. Suppliers - they provide raw materials, utilities, labor, capital and equipment. Effective partnership or relationship management with suppliers is essential. The performance of suppliers can directly impact a company's ability to continuously satisfy its customers. 3. Market intermediaries - are channels that link the organization to its customers. Most products are delivered and distributed to customers through intermediaries. The likes of online resellers- they hold and sell their company's products4. Customers - they create the demand for the products and services. They can either be customers of end users, businesses or organization. 5. Competition - the demand for a company's products and services dis affected by the nature and intensity of competition. Knowing competition is critical to the success of the firm. 6. Publics - may include any individual or entity with an actual or potential interest in the company and its products or services. MARKETING MACRO-ENVIRONMENT The micro-environment consists of external factor that have a significant influence on marketing strategy. The external forces cannot be controlled; hence companies should learn to adopt to these forces. The elements of macro-environment are as follows: 1. Political forces - refers to government actions that influence the economy at large, such as policies and laws on taxation, trade and labor. The stability of the government has an impact on the business environment. 2. Economic forces - are the determinants of an economy and its conditions like inflation rate, interest rates, monetary policies and foreign exchange rate. 3. Social forces - includes aspects of culture and society, demographics, lifestyles, values, social trends and other similar changes. Trends in particular are a significant social factor which must be considered by a highly competitive company, Trends refer to a particular behavior of a certain group which lasts for certain period. 4. Technological forces - advancement in technology have a great impact on business and companies must keep up with the changes. This prompts companies to develop technology and determine how these can be used for their benefit and satisfaction. 5. Legal and regulatory board - legal forces refers to laws, regulations and government policies that impact the business organization and its operations. These include health and safety standards. These forcesregulate the activities of the business organizations and marketers need to be aware of rules and guidelines 6. Environmental factors - environmental concerns such as ecology, climate, weather and climate change have an impact on businesses, particularly with regard to resources such as land and raw materials