Question

Define the marketing environment and then select two components of the internal environment and two components of the external environment and their impact on marketing management

Answer 1

Marketing environment is a combination of the internal and external environment. The environment which can be controlled by the company is internal in nature whereas the problems outside the scope of business are external in nature. Therefore a business operates in the preview of both internal and external environment.

Internal environment is the only thing on which we can execute control examples are:
1. Eliminating wastage that is working on KPIV to improve KPOV, therefore, customer satisfaction.
2. The material, labor and machinery quality used in production for efficiency. This can be managed and a proper cost-benefit analysis along with quality can be maintained.

The two components of the external environment which affect marketing environment are:

1. Political factors: These factors govern as to how much does the government interferes with the economy. These can include govt policies, current stability, taxation policy, foreign policy etc. Companies especially MNCs need to update their marketing strategies as per the current government policies.

2. Environment factors: These factors entail our product's environmental impact. If the product poses the harmful impact on the environment, it will be called off at some time. For example, McDonald's have their beef gardens where they rear animals and use them for beef. The animals excreta creates methane which adds to the greenhouse effect.