All companies / organizations function in a market environment. Market environments include both the macro and micro environments. While the macro environment refers to all the forces or, factors that are external to the company, micro environment refers to those factors that are internal to the firm. These factors can be controlled and used by the firm to obtain information and use the same for enhancing its marketing operations. One can say that manipulation of the micro economic factors can help the company to ultimately achieve the desired target of greater customer satisfaction. Although, one should remember that misinterpretations can cause disasters for the company.
Another way of introducing micro environment is to introduce it as factors or, forces that are close to the company. These close factors play a role in the ability of the company to serve its customers. Those forces that are close to the company refers to the concerned company itself, the suppliers, market intermediaries etc. From the companies’ internal micro environment point of view, it refers to the concerned departments of the company like the finance department, research and development, purchasing and operation, accounting and budgeting so on and so forth. All these interconnected departments play their roles in determining the future of the product and customer satisfaction in the near future.
Suppliers form the next vital factor in a company’s micro environment aspect. Suppliers are responsible for making timely and quality supply to the company. If the supplier provide base quality substances or, make a delay in providing the essential material, then the company as such will face an overall delay in reaching the end product to the consumers. This will certainly result in customer dissatisfaction which in turn will affect the interest of the company. It is upon the marketing executives and the managers to keep a close watch on the supply trend that may have an impact on the company in general.
One of the most important aspects of the micro environment of businesses is the consumers / customers. There are numerous customer markets in any given area. Each individual person residing within the society where the business operates may or, may not be a client. The business must identify potential clients who would be interested in buying the products or, the services sold / promoted by the company. Along with the consumers, the competitors also have to be considered as vital micro environment factors of the company. Competitors are those that sell similar products and services and there is a possibility that any slack in the part of the concerned company will cause the customers to sway towards the competitors. Delay in receiving goods can cause such sways.
The last factor affecting the micro environment of a business is the publics, which refers to any group or, for that matter, anyone, who can have an impact on the company’s path of achieving desired targets. Some common examples of this factor are finance publics, media publics, government public etc. The macro environment factors have a major impact on the micro environment of an organization.
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