Economic factor & Non -economic factor

1. The entrepreneurship marketing
environment

2. Micro Environmental factors
• Micro environment refers to the environment
which is in direct contact with company and
affects the routine activities of business straight
away. It is a collection of forces or factors that are
close to the organization and can influence the
performance as well as the day to day activities of
the firm. Six components of micro environment
are: Company, Suppliers, Marketing
Intermediaries, Competitors, General Public and
the Customers.

4. The Company
• Various groups in an organization like the top
management, finance, operations, human resourcing,
research and development (R&D), accounting etc
needs to be taken into account by the marketing
management for designing the marketing plans.
• Marketing managers needs to work closely with them
as that will help them to make decisions with broader
strategies and plans. With marketing team taking the
lead, other departments like manufacturing, finance,
legal and human resources teams takes the
responsibility for understanding the customer needs
as well as creating customer value.

5. Suppliers
• The suppliers are an important part of an
organization’s overall customer value delivery
network. They are the ones who provide inputs to
business like raw materials, parts, cutting tools,
equipments etc. The quality and reliability of
vendors are very essential for smooth functioning
of business of any organization. Marketing
managers must have a control on the suppliers
availability and costs. Any shortage or delays of
supplies, in terms of natural disasters or other
events can cause damage to sales in short run and
lead to customer dissatisfaction in the long run.

6. Marketing Intermediaries
• The marketing intermediaries are also an important
component for company’s overall value delivery
network. They include those individuals or firms who
help the company in promotion, sales and
distribution of its goods to the final buyers. Examples
includes middlemen (agents or merchants) who help
the company find customers, physical distribution
firms such as warehouses or transportation firms
that help the company in stocking and moving goods
from their origin to the destination and marketing
service agencies such as market research and
advertising firms.

7. Competitors
• Competitors are rivals who compete with the
organization in market and resources as well.
According to the marketing concept, a company
needs to provide greater customer value and
satisfaction that its competitors, in order to be
successful. The marketers must not only try to
simply adapt to the needs and demands of
target customers, but also try to attain strategic
advantage against the competitors by
positioning their products strongly in the
market.

8. General Public
• The public refers to the group of people who
have an actual or potential interest in
company’s product or who can have an impact
on the organizations ability to achieve its
objective. There are seven types of publics
identified in a company’s marketing
environment which includes financial publics,
media publics, government publics, citizen-
action publics, internal publics, local publics
and general public.

9. Customers
• The most important actors in the company’s
microenvironment are its customers. The whole
of value delivery network aims to engage the
target customers and create strong
relationships with them. There are five types of
customer markets that companies might try to
target. These include consumer markets,
business markets, government markets, reseller
markets, and the international markets.

10. Macro Environmental factors

11. INTRODUCTION
• Macro environment refers to the major external
and uncontrollable factors that influence the
decision making of an organization. A company
does not operate alone in its business
environment, but operates in a larger context. It
comprises of forces that provide opportunities,
but at the same time also pose threats to
company.
• Six components of macro environment
are Demographic, Economic, Natural, Technolog
ical, Political and Cultural environments.

13. 1. Demographic environment
• Demography can be defined as the study of
human population in context of size, density,
age, location, gender, race, occupation and other
statistics. The marketers have special interest in
the demographic environment because it
consists of people and people are the driving
force for development of markets. The large and
diverse demographics offer both opportunities as
well as challenges for businesses.

14. 2] Economic Conditions of the Market
• The economic conditions of the economy and the
performance of a business have a very close
relationship. A business depends on the economy
for all its inputs and factors of production. It also
sells its products and services in the same market.
• A market is never in one stable condition. It is
always in a flux. If there is a boom in the market
then all businesses will benefit from the favorable
conditions. The income will be higher, rate of
interests will be low, new capital will be available
etc. Also, the opposite is also true in case of a bust.

15. 3] Socio-Cultural and Demographic Environment
• The social values and culture of an environment
play a huge role in the functioning of the company.
So when the social environment changes it can
have a direct or indirect effect on the company.
• For example in recent time society has seen a shift,
and people no longer retire at 60. They work five
to ten years more after sixty. So this has had a
huge impact on companies.
• Cultural forces also have a significant impact on
the success of a company in the long run.
Especially in a country like India where the cultural
influences are strong and complicated.

16. 4] Technological Environment
• In the times we live in, technology is constantly
changing it is important that the business can keep
up with the changes. Technology does not only
confine to computers and IT services. It includes
products, manufacturing processes, techniques etc.
• The technological developments can be a huge
advantage for a firm. But at the same time of the
technology used by the firm becomes obsolete due
to such developments, then it can also be a threat
to the firm.

17. 5] Ecology and Physical Environment
• Ecology and physical environment play a huge part in
the performance of any business. This is especially true
for manufacturing/production companies. Let us take
the example for global warming.
• This change in our physical environment has started
affecting the rainfall in certain regions. This in turn may
affect the crops and cause a shortage in raw materials
such as jute, cotton, rubber etc.
• Weather conditions, topographical elements,
geographical location, climate changes and other
ecological factors are a very important element in the
macro environment of a business.

18. 6] Political and Legal Factors
• The political environment of a country is the
combination of three branches of the government –
legislature, executive and the judiciary. The political
environment of a country will mainly depend on the
political beliefs and ideologies of the party in power at
the state and central levels.
• The legal environment refers to the rules, laws,
regulations, and judgments etc. that affect the
functioning of a business. And this will also include the
taxation laws and the Budget for the given year. So
stable legal and political government is really important
if the business and the economy as a whole has to
succeed.

19. Thank you