Microenvironmental Factors

Marketing requires building relationships with:

• Companies
• Suppliers
• Marketing intermediaries
• Competitors
• Publics
• Customers

All of these factors are close to the company and affects how it serves consumers (Kotler and Armstrong).

The Company 

When making a marketing plan a company needs to consider internal factors within another company. Factors to evaluate are:

• Finances
• Purchases
• Management

All aspects of a company must be aware of customers needs and how they can meet them. (Kotler and Armstrong)

Suppliers 

Suppliers provide a company with needed resources to produce their goods and services. (Kotler and Armstrong). It is important that marketers work closely with their suppliers because they can ultimately determine the price of a product. If theres is a shortage it can cause a delay or increase the price of a company’s offerings, which can lead to dissatisfied customers. I work closely with suppliers regularly at work. We work with various suppliers who provide us with new merchandise or materials needed for repairs. If resources are low we have to wait for them to become available, which prevents us from repairing customers jewelry. Also if there is a high demand in certain pieces prices might increase due to the high demand which will result in unsatisfied customers that can possibly go to a competing jewelry store to fulfill their wants.

Marketing Intermediaries 

Companies that assist businesses in promoting, selling, and distributing goods to buyers consist of:

• Resellers
• Physical distribution firms
• Marketing services agencies
• Financial intermediaries

Resellers are companies such as Costco, Sam’s Club, Walmart, or anyone who resells products. When I go into Walmart I am not purchasing products they make. Walmart purchases from a supplier to fulfill my needs and wants. Physical distribution firms move products to needed locations. It is important to get a product to retailers quickly after being produced so it is available for consumers to purchase and in order to do this a business needs an efficient distribution process. Marketing service agencies target and promote products to appropriate markets (Kotler and Armstrong). If a product is advertised to consumers who are not interested or have no need for the product it will be unsuccessful. Financial intermediaries are other businesses who deal with transactions between buyers and sellers.

Competitors

When creating a product you will be competing with other companies offering the same or similar items. It is important to differentiate your product and promote the value it brings to consumers. Snickers and Twix are competing candy bars. Both Snickers and Twix have commercials on TV. Snickers is famous for their saying “Snickers Satisfies”. On their commercials they show someone angry and hungry, after they eat a Snickers they’re back to normal.  Twix commericals show two factories fighting over which one makes the better side of a Twix bar, the right or left. Both candy bars are located in candy aisles or check out lines at grocery stores, but what makes customers buy a Snickers instead of a Twix? A customer remembers both companies advertisements and know that Snickers will bring them more value and satisfaction.

Publics

A public is any group that has an actual or potential interest in or impact on an organizations ability to achieve its objectives. There are seven publics:

• Financial
• Media
• Government
• Citizen-action
• Local
• General
• Internal

(Kotler and Armstrong)

Each public consists of different groups that affect a company. Companies market to certain publics to narrow their target group and lead them to purchase their products.

Customers

Customers have the biggest influence and impact in a microenvironment. They are the ones who purchase products or services. Customers can be consumers, businesses, retailers, government, or international markets (Kotler and Armstrong). No matter what type of customer it is important to build strong relationships.