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Internal Marketing Environment

Last updated on April 10, 2023

The marketing environment is the internal and external forces influencing the efficiency of a company to drive actual sales from the target consumers. The internal marketing environment are those factors within the control of an organization. For example, customers, suppliers, and employees, among others.

The degree to which a marketing environment favors a company’s marketing campaign dictates the potential profitability. For instance, a high population implies higher demand and, thus, an organization’s good external marketing department.

Internal Marketing Environment

They are also called micro forces influencing an organization’s marketing campaigns. They are forces that dictate the ability of markets to compute every customer’s group’s exact need and tailor-make each marketing campaign before it is delivered. Each of these forces affects the success of marketing camping as follows:

1. Suppliers

The availability of raw materials dictates smooth processes or delays attributed to the unavailability or insufficiency of raw materials. Marketers must understand how their marketing campaign drives the demand for the marketed products or services. They must make sure that there is consistent production for the finished goods and services being advertised.

There must be enough suppliers for consistent production to ensure the constant inflow of raw materials for consistency of output. These marketers must also understand the pricing and quality of material from different suppliers to avoid a scenario where customer value for money is unmet.

2. Employees

Marketers need to understand employees’ satisfaction with their remunerations and workplace conditions. A marketer should advocate for a conducive workplace for all staff. This ensures the quality and consistency of their work in producing the finished product to be marketed.

A marketer should keep a close eye on how staff expresses their emotions about the employer’s satisfaction. This understanding helps a marketer work near HR to address such issues and maintain employee satisfaction.

3. Competitors

Rivals in the market dictate the market share claimed by a marketer. A marketer must have a clear understanding of the approach taken by other marketers in serving customers’ needs. Marketers should add value to what their rivals offer, increasing the value for money for the target market. Marketers should strive to develop a competitive advantage over other rivals for more customer satisfaction.

4. Company management

The interdependencies and the proximity at which the marketing department works with other departments dictate the marketing department’s success. Marketers must gain insights from other departments to adapt to customers’ changing dynamics.

Research and development would provide insight into projected customer needs, market demand, and supply changes, among other insights. This would help the marketing department tailor campaigns to meet these forecasted market dynamics.

Working near the purchasing and supplies department would imply understanding the availability of inputs. With insights from the purchasing and supplies department, marketers would understand the priority to market products based on their expected production consistency.

5. Intermediaries

A marketer needs to understand the support companies in their industry of operation. This is for strategic alliances and partnerships to create more customer value and value for money. A competitor knowledgeable about support companies can bargain better for support services and work with the best support company. Such marketers will meet the customers’ needs and create more value for their money.

Internal Marketing Environment Example

Company Z is considering intensifying its marketing campaigns. Company Z deals with kitchen appliances and targets baby boomers. The marketing department acknowledges that its suppliers will play a vital role in the marketing campaign. Company Z is seeking a supplier with high-quality materials and sustainable pricing models.

Supplier is a factor within the control of Company Z. The company operates in an environment where the political environment has been poorly performing. The marketing manager advises Company Z that it is important to wait for the political climate to stabilize. This is because the political environment is beyond the control of Company Z.

Suppliers fall under the internal marketing environment, while the political climate falls under the external one. The internal and external market environments are thus the two major categories of the marketing environment.

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