Market Environment refers to factors which affect the firm’s ability to build/maintain successful relationship with the customers.
There are 3 levels of environment present within the company namely:
Micro Environment: These are small forces within the company that affect the ability to serve its customers. It refers to the challenges that come from inside the business itself. It is also referred as the internal environment. This includes all departments such a management, finance, marketing, operations, audit etc.
Meso Environment: It is the industry market in which the company operates.
Macro Environment: It is the outer societal forces which affect the micro environment. It includes concepts such as demography, natural forces, economy, technology, politics and culture.
The entire environment consists of intermediaries which help to sell/ promote/ distribute goods. The intermediaries are as below:
• Physical Distribution Firms
• Marketing services agencies
• Financial Intermediaries
Other groups must also be considered:
• Citizen Action Groups
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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