Marketing Environment Forces When it comes down to a company who is selling a product to a customer it upends on the relationships that the company has made and maintain to be able to present a valuable product that the consumer will take home with them. Not only does a company have to look at the consumer and what the consumer is looking to buy and the price that purchase will happen at, they also have to find the right intermediaries that will produce, transport and sell that product for them.
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This paper will discuss the outside forces that marketers must take into consideration when presenting a product. There are two marketing environments that marketers must deal with when trying to each a customer. Those environments are micromanagement and micromanagement. Micromanagement is everyone and everything that surrounds the company and either helps or hinders the company’s ability to serve its intended customer (Armstrong ; Kettle, 2009, Peg. 65).
This environment is made up of suppliers that provide the materials to make the bulletproof vests all the way to the competitors and the prod cuts that they are selling. The next environment is the micromanagement which includes the demographics of an area; age, ethnicity, population, financial classes be it per, middle or lower, all the way to the economic standing of the customer’s community; is it in a recession or not? Marketers need to determine which forces, out of all the ones present in the two environments, will impact the product they are trying to sell.
The first force will be suppliers. Suppliers are important because they provide the materials needed to produce the bullet proof vest (Armstrong & Kettle, 2009, Peg. 66). If for any reason the supplier were to run short on supplies, have problems with their means of getting resources, or even have problems within their work Orca, this could cause major problems down the line which will affect revenue as well as customer’s confidence in the company’s ability to present a product.
The second environmental force is the customers. The company will have to look at the five different customer markets and become familiar with their characteristics in order to be able to successful sell their products. The five markets that make up the customer force are consumer market, business market, reseller markets, government markets, and international markets (Armstrong & Kettle, 2009, Peg. 67). The consumer market is made up of customers that buy products for their personal use.
The business markets buy goods to be able to use in their own production processes where reseller markets purchase goods and then sell those items forward to consumers at a higher price in order to make a profit. An example of a reseller is Wall-Mart stores. The government market will purchase goods that they will use in the line of their work. For example police departments will purchase the bullet proof vests made by American Body Armor to use while carrying out their duties. The last market is international.
When looking at international marketers must take into consideration differing laws, cultures and economies when trying to sell a product as well as the environmental forces present their as well (Armstrong & Kettle, 2009, Peg. 67). The third and final force that marketers must look at is the economic environment. The reason why this force is important is because this force determines the kind of spending that consumers do and what determines these patterns. The biggest factor that can alter a consumers spending pattern is the amount of none they make or a change in the amount of money they were making.
If a person used to make $1 00, 000 a year and then their job makes cuts in their payroll decreasing that consumer’s salary to $80, 000 a year that potential customer will make changes in their spending habits to adjust in the lesser income and vice versa. Marketers must also determine if the economy of their intended market is a subsistence economy mean ins “ they depend major on the industrial and agricultural output of their own country’ (Armstrong & Kettle, 2009, Peg. 8), or an industrial economy which opens the market up for different opportunities and sales of goods.
Looking at the three different forces there will always be the potential for things to go wrong but if marketers plan ahead and keep these potential upsets in mind they will be better prepared to deal and adjust as necessary. One way to handle any problems with a supplier is to have a network of suppliers that can be called to handle the task at any time. By creating working relationships with more than one supplier marketers and the company they represent will e able to sidestep any pauses in resources reaching their destination for long periods of time.
With the different markets presented in the customer force marketers need to study each group well and determine how to approach each one so that they are successful in entering the market with their product or bypassing some altogether. The last force of economic environment is a little harder to predict and plan for but not impossible. By looking at spending trends Of consumers over different time frames Of economic stability and instability marketers can adjust their approach by adding value to their product over the product of their competitors to be able to gain the consumer’s purchase.