The Marketing Environment: Success and Failures

Hiya guys! and welcome to a new blog post. Today we will be discussing how the marketing environment is important to digital marketing success and failure. But first we need to know what the definition of marketing environment is.

According to Philip Kotler (Marketing Environment: Definition, Micro & Macro, and Environmental Scanning, n.d.-a),

“A company’s marketing environment consists of the internal factors & forces, which affect the company’s ability to develop & maintain successful transactions & relationships with the company’s target customers.”

In other words, the company’s success depends on how the company develops and maintains a long-lasting and lucrative relationship with consumers, which is influenced by variables within the marketing environment (Luenendonk, 2019). These variables also fluctuate occasionally, making it a must for marketing professionals to continuously adapt marketing strategies (Luenendonk, 2019). Overall, the marketing environment is comprised of two key factors: Macro and Micro environment.

This figure outlines the marketing environment: Macro-environment and Micro-environment.

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A Micro Environment is known as the operating environment which focuses on players that shape how an organisation responds in its marketplace (Chaffey, Ellis-Chadwick, 2019; Pahwa, 2019). The micro environment consists of a relationship between the organisation and suppliers, company, intermediaries, customers, and competitors. The micro environment has a direct impact on business routines and can impact on the company’s productivity (M, 2020; Difference Between Micro and Macro Environment, n.d.).

A Macro Environment are aspects of uncontrollable environment comprised of external forces which can significantly affect the organisational services (Chaffey, Ellis-Chadwick, 2019; Pahwa, 2019). The impacts include the working style, decision-making process, strategy, and performance of the business (Pahwa, 2019). These are external factors that an organisation cannot control. The factors include demographic, cultural, legal, economic, technological, and political (Difference Between Micro and Macro Environment, n.d.).

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Every business operates in the marketing environment and it is one of the most dynamic aspects of the business (Pahwa, 2019).

Digital Marketing Success

1. Understanding the marketing environment (micro and macro) is essential for planning. The company needs to be aware of the current environment and future predications of the environment to ensure that plans succeed (Pahwa, 2019).

2. Through the marketing environment, a company can analyse and research customer behaviours and white noise to improve marketing strategies (Pahwa, 2019).This gives the business better understanding and opportunity to better connect with customers.

3. Businesses need to understand the marketing environment to break into trends. Marketers need to research every aspect of the environment surrounding the trend to be able to implement and participate in the trend successfully (Pahwa, 2019).

4. Understanding the marketing environment gives businesses the opportunity to detect threats and opportunities coming their way (Pahwa, 2019). This can protect and help businesses thrive.

5. Knowing the environment means knowing and understanding more about competitors (Pahwa, 2019). How are competitors cornering the market, what are their advantages and disadvantages. Can my business take advantage of the competitors disadvantages etc.

6. Breaking into international markets. An Australian marketing environment is very different to say Malaysia’s marketing environment. Researching the macro and micro environment of new markets, like countries, closely ensures better assimilation and acculturation into the new market.

Digital Marketing Failures

1. Failures occur when the marketing environment was not properly researched or due to a marketer’s lack of understanding of the market. This can allow for acculturation into new countries to fail due to not properly appealing to the consumers correctly, competitors can overtake and corner the market, opportunities can slip by, and failing to connect with customers.

2. Social marketing campaigns that discourage the use of the goods the business is selling. For example campaigns focusing on discouraging the use of cigarettes in Australia can result in market failures for tobacco companies.

3. Social barriers in certain demographics may also contribute to digital marketing failures. Barriers can include low income households, rural areas, older generations who have no digital literacy, and illiterate people who cannot afford the internet or have a lack of access to the internet.

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2b: Post a short video on YouTube

This video is about the trip I took to Europe in 2018.

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References

Chaffey, D., Ellis-Chadwick, (2019). Digital Marketing: strategy, implementation and practice. Pearson Education.

Difference Between Micro and Macro Environment. (n.d.). StudiousGuy. Retrieved 21 August 2020, from https://studiousguy.com/difference-between-micro-and-macro-environment/

Luenendonk, M. (2019, September 25). Marketing Environment: Explanation, Components, and Importance. Cleverism. https://www.cleverism.com/marketing-environment-explanation-components-and-importance/

M, P. (2020, May 7). What is Marketing Environment? Definition, internal environment, micro environment and macro environment. The Investors Book. https://theinvestorsbook.com/marketing-environment.html

Marketing Environment: Definition, Micro & Macro, and Environmental Scanning. (n.d.-a). StudiousGuy. Retrieved 21 August 2020, from https://studiousguy.com/marketing-environment/

Pahwa, A. (2019, August 17). Marketing Environment: Explanation, Components, & Importance. Feedough. https://www.feedough.com/marketing-environment/