Which of the following is a companys most important actor in its microenvironment?

Colleen Doucette, B.A.

Colleen Doucette, B.A.

Published Sep 19, 2017

In previous articles, I wrote about the basic concepts of marketing and the steps in the marketing process for building profitable relationships with targeted consumers. Now, we need to look deeper into the first step of the marketing process - understanding the marketplace and customer needs and wants.

Marketing operates in a complex and changing environment and various actors in this environment - suppliers, customers, competitors, etc. - can either work with a company or against it. Demographics, economics, technology, politics, and culture all shape marketing opportunities, pose threats, and affect your company's ability to build customer relationships. To develop effective marketing strategies, first, you need to understand the environments in which marketing operates. They are: The Microenvironment and the Macroenvironment. Let's talk about the microenvironment.

The Microenvironment

A company's microenvironment consists of those close to the company that affect its ability to serve its customers such as the company itself, suppliers, competitors, the public, marketing intermediaries, and customer markets. The job of the marketing manager is to build relationships with customers by creating value and satisfaction and their success means that they need to build strong relationships with other departments, with suppliers, etc.

The Company

Recall what we learned before, that the marketing department takes other groups into consideration when developing their marketing plans - finance, R&D, purchasing, accounting, etc. These are the "internal environment". The marketing managers must make decisions within the strategies set out by top management of these departments. And everyone shares the responsibility in providing a great customer experience, including people and departments that are not necessarily in the face of customers such as finance, legal, or human resources.

Suppliers

One of the most important links in the company's overall value delivery network are suppliers. They are key in providing the resources needed to produce goods and services. They can also seriously affect marketing. Marketing managers have to have supply availability and costs because shortages or delays, or even labour strikes can cost the company sales and damage customer satisfaction. Even rising supply costs, which would force price increases, can harm your sales volume.

Companies must treat their suppliers as partners. They need to be involved in quality, design, and price to create the kinds of products that keep customers coming back again and again.

Marketing Intermediaries

Firms that help your company promote, sell, and distribute your products are called marketing intermediaries. They would be resellers, distribution companies, marketing services, or financial institutions.

• Resellers - These companies are distributors who help your company find customers. They are wholesalers and retailers who buy and resell your merchandise.
• Distribution companies - These are physical distribution firms who help stock and move your company's goods from their point of origin to their destinations.
• Marketing services agencies - These firms help your company target and promote your products to the right markets. They are marketing research firms, advertising agencies, media firms, or marketing consultants.
• Financial intermediaries - Banks, credit unions, insurance companies, and others help finance transactions or insure against risks associated with buying and selling.

Marketing intermediaries play an extremely important role in overall value delivery. Your company has to do more than just optimize its own performance, you have to partner with marketing intermediaries to optimize the performance of the entire system.

Competitors

Marketers have to do more than adapt to the needs of their target customers, they have to gain the strategic advantage by positioning themselves strongly against their competition.

Consider your size and industry position compared to your competitors. No single competitive marketing strategy is best for everyone. Larger firms with dominant industry positions can use strategies that smaller firms simply can't and vice versa.

Publics

What's a public? It's any group that has an actual or potential interest in or impact on a company's ability to achieve its objectives. There are seven types:

1. Financial publics: Banks, stockholders, and investment analysts influence the company's ability to obtain funds.
2. Media publics: Newspapers, magazines, blogs, television stations, and internet media carry news, features, and editorial opinions.
3. Government publics: Government developments must always be taken into account. Consult your company's lawyers on issues of product safety, truth in advertising, and other matter.
4. Citizen-action publics: Your company's public relations department can help it stay in touch with consumer and citizen groups that could question the company's decisions. They could include environmental groups, minority groups, or consumer organizations.
5. Local publics: Local publics are neighbourhood residents and community organizations. It's a good idea to have departments and programs that deal with local community issues.
6. General public: Your company needs to be concerned with the general public's attitude toward your products and services. Your public image is critical.
7. Internal publics: This group includes workers, managers, volunteers, and the board of directors. When employees feel good about the company they work for, their positive attitude expands to external publics.

Customers

Customers are the most important actors in the microenvironment. The goal is to serve target customers and create strong relationships with them. There are five types of customers in which to target:

1. Consumer markets - Individuals and households that by goods and services for personal consumption.
2. Business markets - Organizations that by goods and services for further processing or use in production services.
3. Reseller markets - Organizations that by goods and services to resell at a profit.
4. Government markets - Government agencies that buy goods and services to product public services or transfer the goods and services to other who need them.
5. International markets - Buyers in other countries, including consumers, producers, resellers, and governments.

You, as a marketer, must be environmental trend-trackers and opportunity seekers. You have to have special aptitudes - market research and market intelligence. Today you've learned about the microenvironment. Hopefully you'll be able to take this information and develop effective marketing strategies! Next up, the Macroenvironment!