Internal External
• Company • Political
• Customers • Economic P.E.S.T.
• Suppliers • Technological
• Middlemen
• Society • Enviromental
• Distribution • Legal
The term Micro Environment denotes those elements over when the
marketing firm has control or which it can use in order to gain information
that will help in its marketing operations. It is important to re-emphasise that
the objective of marketing philosophy is to make profits trough satisfying
customers. This is accomplished through the manipulation of the micro
environment variables over which the company has control in such a way
as to optimise the objective.
• Customers
• Competitors
• Suppliers
• Publics
• Distribution
Customers
Distribution (Place)
Manufacturer Middle People Consumers
A. Financial Publics
Influence the company’s ability to obtain funds
B. Media Publics
Media Publics are those that carry news, features and editorial
opinions.
Ex: News papers, magazines, radios and TV stations.
C. Government Publics
Management must take government developments into account.
Marketers often consult to company’s lawyers on issues on products
safety, truth in advantages and other matters. Government is
generally concerned about companies because of tax collections.
D. Citizen Action Publics
A company’s marketing decision may be questions by consumer
organizations, environmental groups, minority groups and others. A
company’s public relations market can help to stay in touch with
consumer citizen groups.
E. Local Publics
Every company has local publics such as neighbourhood residents
and community organizations. Large companies should ideally deal
with the community, attend meetings, answer any queries and
contribute to worthwhile causes.
1. Federation of Industry
2. Chamber of Commerce
3. GRTU (General Retailers and Traders Union)
Such organisations discuss new policies with the government and work for
an agreement in the interest of the sector
Economical Environment
Inflation – When the product is a luxury product the likely hood of demand
will decrease, but when it is a necessity product the demand will be
constant as long as no cheaper replacements exists.
This is perhaps the most difficult element out of the pest analysis,
manifesting its self in changing tastes, purchasing behaviour and changing
patterns. The type of goods and services demanded by consumers is a
function of their social conditioning and their consequent attitudes and
believes
Core based values are those firmly established within a society and as
therefore difficult to changes they are transmitted trough family, church and
the institutions of society which acts as relatively fixed parameters within
which marketing firms are forced to operate. Secondary cultural values
however tend to be less strong and therefore more likely to undergo
change.
• Religious groups
• Cultural/Racial Groups
IKEA was not shy to support the gay community. In 1994 they were running
an advertisement in the US using 2 Gay man shopping for a dining room
table together.
Technological Environment