List and discuss the importance of the elements of the marketing organisation? microenvironment including the marketing organisation, marketing intermediaries, customers, competitors and public.
An organization’s marketing and management decisions are affected by a lot of factors surrounding the organization. Its decisions depend upon how these factors behave. These factors could be inside the organization’s control purview or could fall outside of the same. A study of these factors is a must in order to identify the opportunities and threats which can impact the marketing environment of the company. These factors form the marketing environment of an organization. These factors can be categorized into Internal Environment, Microenvironment and Macro environment (Kotler, 2009, p. 132).
Internal Environment consists of the factors that play within the organization. These include Employees, Policy and Regulations of the company, Assets, hierarchy/structure and the products and services offered by the organization. Internal Environment can be best understood by Five Ms which are Men, Money, Machinery, Materials and Markets.
Micro environment consists of individuals and organizations which have a direct impact on the customers of the organization. They are close to the organization and have a say on a daily basis. These would include the company itself, customers, suppliers, intermediaries, competitors and public which form the microenvironment impacting the stakeholders (Kotler, 2009, 134).
Macro environment is made up of political, economic, social, technological, legal and demographic factors which affect the organization from outside. These factors are pretty much beyond the control of the organization but impact the way organization functions, take decisions.
We can best understand the above factors and their impact on the marketing environment and management decisions of an organization is by studying an organization in this context. Woolworths Limited is a major retailer in Australia with interests in Supermarkets, liquor, hotels, and petrol stations. It has advertised itself through various brands like Woolworths for Supermarkets and Petrol, Dan Murphy’s is a liquor group, BIG W is store of various brands and Masters home Improvement, a large retail furniture store. There are Hotels by the name of ALH group and also has a financial services firm by the name of Woolworths everyday money. (Official Website of Woolworth’s, 2012)
By studying the internal, micro and macro environment in which Woolworths operates, we can understand the marketing and management decisions the company takes.
Woolworth’s Limited – A Snapshot
Woolworth’s strategy and objectives, though differ from each of its brand, but there are a few which are common to the whole business like maximizing shareholder value, building new growth businesses and ushering in a new era of growth.
The kind of business they are in, they know that it is an ever changing business. Customers are spoilt for choices and they seek greater value for the money they spend. Customers are driving the retail business and study of their behavior and other environmental factors have a say in the decisions the organization takes.
Woolworths is a company with strong ethics and belief in hard working culture. The company’s top most executives started this company by being in the thick of the business and in the helm of affairs. Woolworths has 450,000 shareholders and is a very trusted company for investors.
Woolworths is very vigilant about the environment which surrounds its marketing management and they not only concentrate on their customer base and ways to bring them to their supermarkets but also are very keenly involved in the environmental factors so as to be able to prepare themselves for the changing business and strategize accordingly. They need to be acting according to these forces in order to brace themselves against the very increasing competition and increase in the customer’s notion of value and money. (Official Website of Woolworth’s, 2012)