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What is Microenvironment?
Elements close to a company that impact the company's ability to serve its customers. There are six components of the microenvironment:
a) the company's internal environment, composed of the management personnel and including the finance, purchasing, manufacturing, research and development, and marketing departments;
b) the company's suppliers, who provide the goods and services necessary for the production of the company's products;
c) the marketing intermediaries, composed of all the individuals or companies who help in the promotion, selling, and distribution of the company's products;
d) the customers, consisting of the five types of markets in which the company may sell its products (consumer, industrial, reseller, government, and international markets);
e) the company's competitors; and
f) the company's various publics, which can be any individual or group that can affect the company's ability to achieve its objectives, such as citizen action groups, the media, or the government.
Micro Environmental Factors
These are internal factors close to the company that have a direct impact on the organizations strategy. These factors include:
1) Customers
Organizations survive on the basis of meeting the needs, wants and providing benefits for their customers. Failure to do so will result in a failed business strategy.
2) Employees
Employing the correct staff and keeping these staff motivated is an essential part of the strategic planning process of an organization. Training and development plays an essential role particular in service sector marketing in-order t ...