MicroEnvironment:

The microenvironment consists of the actors in the company’s immediate environment that affects the performance of the company. These include the suppliers, marketing intermediaries, competitors, customers’ etc.

Suppliers: Supplier supply the inputs like raw materials and components to the company. For the smooth functioning of business, it is important to have a reliable source of supply of raw material and components.

Marketing intermediaries: Marketing intermediaries are the firms that aid the company in promoting, selling and distributing its goods to final buyers.

Marketing intermediaries include middlemen such as agents and merchants like: help the company find customers or close sales with them “, physical distribution firms which assist the company in stocking and moving goods from their origin to their destination such as advertising agencies marketing research firms etc and financial intermediaries which finance marketing activities and insure business risk.

Competitors: The firm’s competitors include not only the other firms which market the same or similar products but also all those compete for the discretionary income of the consumers. An implication of these different demands is that a marketer should strive to create primary and selective demand for his products.

Customers: The major task of a business is to create and sustain customers. A business exists only because of its customers monitoring the customer sensitivities, therefore, prerequisite for the business success. A company may have different categories of customers like individuals, households, industries and other commercial establishments, and government and other institutions.

With the growing globalization, the customer environment is increasingly becoming global. Not only the markets of other countries are becoming more open the Indian market is becoming more exposed to the global competition and the Indian customer is becoming more “global” in his shopping.