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Micro-environment
Micro-environment consists of the factors or elements in an organisation's immediate area of operations that affect its performance and decision making freedom. These factors affect its ability to serve its customers, company, suppliers, marketing intermediaries, customer markets, competitors and publics. Competitors form a part of the organisation’s micro-environment by having a direct effect on its market position. The following key groups can be identified:
Customers: Customers are an essential part of an organisation's micro-environment. In a commercial environment, there is no business without customers. An organisation should use an appropriate information gathering system to implement the altering requirements of its customers. An organisation should know its customers so well that it is able to anticipate their requirement beforehand.
Intermediaries: Intermediaries are referred to as channels of distribution comprising people and organisations involved in the process Sikkim Manipal University | Page No.: 24 |
Retail Marketing | Unit 2 | | | of transporting the product from the producer to the consumer. Intermediaries form a valuable link between an organisation and its customers. Large-scale manufacturing firms sell their products through intermediaries as it is difficult to deal with each one of their final customers individually. Access to effective intermediaries is important for marketing success in some business sectors. For example, food manufacturers may find it difficult to achieve large volume sales if they do not get shelf space in the major supermarkets.
Competition: Competitor moves are to be very closely watched as any move which provides the competitor an advantage may prove detrimental to one’s own interest. Any price cuts, expansions into other locations as well as formats, change in merchandise and brands, etc. need to be countered. However, all this is possible only on the basis of economies of scale and
Micro-environment consists of the factors or elements in an organisation's immediate area of operations that affect its performance and decision making freedom. These factors affect its ability to serve its customers, company, suppliers, marketing intermediaries, customer markets, competitors and publics. Competitors form a part of the organisation’s micro-environment by having a direct effect on its market position. The following key groups can be identified:
Customers: Customers are an essential part of an organisation's micro-environment. In a commercial environment, there is no business without customers. An organisation should use an appropriate information gathering system to implement the altering requirements of its customers. An organisation should know its customers so well that it is able to anticipate their requirement beforehand.
Intermediaries: Intermediaries are referred to as channels of distribution comprising people and organisations involved in the process Sikkim Manipal University | Page No.: 24 |
Retail Marketing | Unit 2 | | | of transporting the product from the producer to the consumer. Intermediaries form a valuable link between an organisation and its customers. Large-scale manufacturing firms sell their products through intermediaries as it is difficult to deal with each one of their final customers individually. Access to effective intermediaries is important for marketing success in some business sectors. For example, food manufacturers may find it difficult to achieve large volume sales if they do not get shelf space in the major supermarkets.
Competition: Competitor moves are to be very closely watched as any move which provides the competitor an advantage may prove detrimental to one’s own interest. Any price cuts, expansions into other locations as well as formats, change in merchandise and brands, etc. need to be countered. However, all this is possible only on the basis of economies of scale and