Market environment Essay
Market environment is a marketing term, which refers to the factors and forces that affect a firm’s ability to build and maintain successful relationships with the customers. In marketing terms there are two main environmental factors (i.e Macro environmental and Micro environmental) Macro environmental is national larger societal forces that affect the micro environment. Micro environment is mostly internal environment, which include small forces within the company that affects its ability to serve its customers. The internal (micro environment ) affects the organization directly. It refers to the environment that is most closely linked to the firm. Micro environmental factors of Coca Cola :Following are the main micro environment factors which are affecting Coca Cola:
1. The company itself (including departments). The first is the organization’s internal environment–its several departments and management levels–as it affects marketing management’s decision making. Chairman of Board & Chief Executive Officer Chief Marketing & Commercial Officer, Marketing Department, Finance Deptt, Packing Deptt, Sales Deptt Research & Develoment Deptt, Administrative Dept. These all top management and departments are involved in operations and decisions of the company.
2. Suppliers Suppliers always play an important role in a company’s operations. Suppliers provide resources and raw material which the company requires to produce the goods and Coke company suppliers in Pakistan vary with respect to the raw material they provide. There are different suppliers of coke in different areas of the country.
3. Marketing channel firms (intermediaries). marketing intermediaries (middlemen, physical distribution firms, marketing-service agencies, financial intermediaries). Marketing Intermediaries help the company to promote, sell and distribute its goods to the end users.
4. Customer. It consists of the five types of markets in which the organization can sell: the consumer, producer reseller, government, and international markets. Recent survey shows that coke is the only product in the world with which more than 85% of the population is well aware of. Value of customers for coke can be understood by these factors that coke spends lot of efforts on customer research. From kids to youngsters, from youngsters to elders and from elders to older, coke has always captured high customer attention from decades. We can divide coke customers in different categories.
5. Competitors. consists of the competitors facing the organization. As we know there are two soft drink giants, Coca Cola and Pepsi .Competition between the two companies’ remains very close. Both the companies continue to make efforts to take lead in terms of price, packing, promotion. These companies try theier best to give more customer value and satisfaction than their competitors. Micro-environment(continued) Competitive rivalry There are currently three(3) major players in the cold drink industry. Coca cola Pepsi cola Cadbury Schweppes Coca cola has got dominant position. There are currently growing markets and niches that can be exploited so competition is not so keen.
6. Publics. The company’s marketing environment also includes various publics such as , Financial publics , Media publics , Government publics , Citizen action publics , Local publics , Internal publics and the general public. Amongst all the publics the most important is the general public , because they are the ones that but the product so the company needs to be concerned about their attitudes toward its products. Every country has different type of public which affect any business in the country most effective public for Coca-Cola is media public.