What are the factors and forces inside the organization that affects its marketing operation?

Q: What are the forces that constitute marketing environment of the company?

To get a better idea of how they affect a firms marketing activities, lets look at each of the five areas of the external environment..

Inhaltsverzeichnis Show

External: The Economy
Internal: Employees and Managers
External: Competition from other Businesses
Internal: Money and Resources
External: Politics and Government Policy
Internal: Company Culture
External: Customers and Suppliers
What factors affect marketing organization?
What are the most important forces in the marketing environment?
What are the factors affecting marketing environment?
What are the forces that constitute marketing environment of the company?

The role of company leadership is an essential internal factor. Your leadership style and other management style impact organizational culture. Often, firms provide a formal structure with its mission and vision statements. Some cultural implications which result from leadership approaches are value of employees; the positive or negative nature; and effectiveness of communication level of family-friendliness.

In a high performing workplace, the workers not only have talent, but they also work better together. The employees and departments collaborate on ideas and resolutions. The internal factors basically include the inner strengths and weaknesses. Internal factors can affect how a company meets its objectives. Strengths have a favorable impact on a business. Weaknesses have a harmful effect on the firm.

Some examples of areas which are typically considered internal factors are:

Financial resources like funding, investment opportunities and sources of income.
Physical resources like company’s location, equipment, and facilities.
Human resources like employees, target audiences, and volunteers.
Access to natural resources, patents, copyrights, and trademarks.
Current processes like employee programs, software systems, and department hierarchies.

Companies must also consider softer elements like company culture and image, the role of key staff, operational efficiency and potential. The most common internal factors that might affect your business in various ways are:

ORGANIZATIONAL AND OPERATIONAL
These are a part of the operational and administrative procedures. This includes disorganized or inaccurate record keeping. Interruptions to your supply chain and outdated or faulty IT systems are also factors you should evaluate. If you do not overcome these, your customers might see you as unreliable. You can also lose all your data.

STRATEGIC RISKS
These affect your firm’s ability to reach the goals in the business plan. They could be due to the impacts of changes in technological evolutions or customer demand. These factors could pose as threats as they can alter how customers perceive your product. Based on these, customers might think a product is overpriced, dull and outdated.

INNOVATION
Your business needs innovation in order to keep up with competitors. It is essential to get one step ahead. Innovation could come in the form of marketing. It could also be through promotional initiatives in the marketing plan, staff training, and welfare. Embracing new technology is the best way to keep up with technological advancements. A lack of innovation can pose a serious risk to a growing business. No innovation will cause a company to remain boring. The company will become dull, stagnant and irrelevant.

FINANCIAL
The financial risks depend on the financial structure of your business. It is also dependent on your business transactions and the financial systems. For example, changes in interest rates or being overly reliant on one customer could affect business.

EMPLOYEE RISKS
Employees are vital to business success. But, there are risks associated with them. For an industry, strike action could lead to a lot of problems.

A business concept that looks perfect on paper may prove imperfect in the real world. Sometimes failure is due to the internal environment – the company's finances, personnel or equipment. Sometimes it's the environment surrounding the company. Knowing how internal and external environmental factors affect your company can help your business thrive.

External: The Economy

In a bad economy, even a well-run business may not be able to survive. If customers lose their jobs or take jobs that can barely support them, they'll spend less on sports, recreation, gifts, luxury goods and new cars. High interest rates on credit cards can discourage customers from spending. You can't control the economy, but understanding it can help you spot threats and opportunities.

Internal: Employees and Managers

Unless you're a one-person show, your employees are a major part of your company's internal environment. Your employees have to be good at their jobs, whether it's writing code or selling products to strangers. Managers have to be good at handling lower-level employees and overseeing other parts of the internal environment. Even if everyone's capable and talented, internal politics and conflicts can wreck a good company.

External: Competition from other Businesses

Unless your company is unique, you'll have to deal with competition. When you start your company, you fight against established, more experienced businesses in the same industry. After you establish yourself, you'll eventually have to face newer firms that try to slice away your customers. Competition can make or break you – look at how many brick-and-mortar bookstores crashed and burned competing with Amazon.

Internal: Money and Resources

Even in a great economy, lack of money can determine whether your company survives or dies. When your cash resources are too limited, it affects the number of people you can hire, the quality of your equipment, and the amount of advertising you can buy. If you're flush with cash, you have a lot more flexibility to grow and expand your business or endure an economic downturn.

External: Politics and Government Policy

Changes in government policy can have a huge effect on your business. The tobacco industry is a classic example. Since the 1950s, cigarette companies have been required to place warning labels on their products, and they lost the right to advertise on television. Smokers have fewer and fewer places they can smoke legally.

The percentage of Americans who smoke has dropped by more than half, with a corresponding effect on industry revenues.

Internal: Company Culture

Your internal culture consists of the values, attitudes and priorities that your employees live by. A cutthroat culture where every employee competes with one another creates a different environment from a company that emphasizes collaboration and teamwork. Typically, company culture flows from the top down. Your staff will infer your values based on the type of people you hire, fire and promote. Let them see the values you want your culture to embody.

External: Customers and Suppliers

Next to your employees, your customers and suppliers may be the most important people you deal with. Suppliers have a huge impact on your costs. The clout of any given supplier depends on scarcity: If you can't buy anywhere else, your negotiating room is limited. The power of your customers depends on how fierce the competition for their dollars is, how good your products are, and whether your advertising makes customers want to buy from you, among other things.

What factors affect marketing organization?

Six factors that can affect your marketing strategy.

Internal factors. The internal factors are the only aspects of marketing that you can control. ... .

Social factors. ... .

Competition factors. ... .

Economic factors. ... .

Regulatory factors. ... .

Technological factors..

What are the most important forces in the marketing environment?

There are six critical environmental marketing factors. These comprise the socio-cultural, legal, economic, political, and technological factors. The external factors are significant forces affecting an organization, its competitors, and the elements of the internal marketing environment.