Micro Environment is the internal and controllable forces or factors within the organization(intra-Organization) which has the potential to affect organization’s marketing performance.
- Besides being closer to the management, these are the factors with which the management has to deal frequently.
- It creates either strengths or weakness. Strength means competitive advantage and Weakness means competitive disadvantages.
Components of Micro Environment:
- Customers
- Competitors
- Suppliers
- Marketing Intermediaries
- Publics
1.) Customers:
Customers are the most crucial part of the micro environment because businesses exist to meet their needs and wants. Companies must analyze customer preferences, buying behavior, and market trends to develop effective marketing strategies.
2.) Competitors:
Businesses operate in a competitive environment where multiple firms sell similar products or services. Understanding competitors’ pricing, marketing strategies, strengths, and weaknesses helps a company differentiate itself.
3.) Suppliers:
Suppliers provide raw materials, equipment, and services necessary for production. A company must maintain good relationships with suppliers to ensure quality, timely delivery, and cost-effectiveness.
4.) Marketing Intermediaries:
These are firms or individuals that help businesses promote, distribute, and sell their products to customers. They include:
- Wholesalers (buy in bulk and resell to retailers)
- Retailers (sell directly to consumers)
- Distributors (manage logistics and supply chains)
- Advertising agencies (promote products through marketing campaigns)
5.) Publics:
Publics refer to any group that has an actual or potential interest in a company’s success. They include:
- Media (news channels, social media influencers, blogs)
- Government (regulatory bodies, tax authorities)
- Financial institutions (banks, investors, shareholders)
- Local communities (people living near business operations)
