Micro Environment is the actors (stakeholders) and their interactions which influence how an organisation responds in its market which involves
Individuals or organisation who provide raw material, work-in-process or finished goods to a firm.
Intermediaries between suppliers and organisation
Accessing to internet would allow suppliers and organisation communicate more easier and real time. Suppliers could inform immediately after the ordered goods are arrived; while, organisation could also set a system to order goods before it run out. The digital platform allows both sides to lower costs and increase speed of logistic.
The most important group of people who generate money to a firm who purchase or consume our product because it satisfy their need.
Intermediaries between customers and organisation
In order to deeply understand what customers need and behaviors. Online channel is one of the most important role to predict and where the largest data is gathered. For example, google search engine, Facebook like or history of online shopping.
Another important organisation which a firm need to be aware of what they have been doing, how much of their sales or any actions.
Internet platform regarding on competitors
Product launch, sales or advertisement of their competitors could be discovered easier than in the past. This allows a firm to analyse their industry faster and simpler. However, what would be shown online for any firm need to think carefully in order to hide the important information from their competitors.
Here is the video of Micro Environment :
Another marketing tool to manage marketing execution and analyse industry :
Someone thinks that all political issues become laws and that this is a duplication of ‘legal’, however, governments can ban or block activities, but this is not always enshrined in law. For example, Facebook has been blocked in Iran, Vietnam and North Korea. Twitter is currently banned in several other countries. This social media map from Mother Jones, shows what’s banned where.
This means if you’re a business using Facebook in these areas, you cannot use these advertising options and it is less likely that your target audience can see your updates. It also means you need to consider local alternatives, for example, Sina Weibo in China and Facenama in Iran and Afghanistan.
The arrival of the Internet created many pricing options that would have previously been impossible to imagine. For example:
- 24 hour sales are easier to accommodate with a code to enter at checkout, “only available until midnight”
- Dynamic pricing based on availability and quantity is now used by most airlines and by many hotel groups and hotel chains
- Auction pricing focused on highest and lowest offers (reverse auctions) is used by eBay, Priceline and many others
- Software being sold as a service, with monthly payments rather than an upfront fee for a box of disks!
- Free, freemium and premium services have evolved with some services such as games, being free, but showing ads and premium options available for ad-free services
Advantages of a digital environment mean that companies can adapt to local economic conditions and offer
- Flash or 24 hour sales to move older stock
- Email customers with advance access to sales
- Stock sales via other outlets, such as Amazon and ebay, perhaps not under the main brand name
Understanding what’s acceptable socially or within a culture as well as greater appreciation of different societies and beliefs is more available online than ever before. This knowledge has created opportunities and has opened new markets.
Other issues on a socio cultural level include
- Access to internet – surprising as it may seem, not everyone has access to the internet. This is especially true of the 80+ demographic, as well as those on lower incomes.
- Acceptance of the technology – as the age profile in Facebook grows with more parents and grandparents adopting the platform, younger users are finding it less socially acceptable and are moving towards What’s App.
This issue is an easier element to understand within the PESTLE mix when it comes to digital marketing. It’s all about the technology being used, whether that’s desktop or mobile, tablets or wearables.
Issues for your business include:
- Screen size and where the internet is accessed
- How you can make your user journeys easier
- Whether new technology makes elements of your marketing mix redundant
Legal issues online are a major consideration. Here are some issues that you may need to consider within your local laws:
- Bloggers being paid, but not disclosing that they are promoting a business (misleading practices)
- Product placement including verbal mentions during ‘editorial content’
- Stealing images from other websites (copyright infringement)
- Using well-known brand names on your own website (passing off – common tort)
- Paying commissions direct to staff (Bribery Act)
- Selling customer data (Data Protection)
Plus, when setting up social media pages, you may need to adapt to meet different laws in different places. For example, if you’re setting up a Facebook page to promote alcoholic drinks, it’s essential to age-gate and country-gate; ensuring your page is only available to those aged over 18 and those in the UK. If you ignore this, you could be breaking laws in other jurisdictions and this could have a negative impact on your business.
Here is the video of Macro Environment :
Both Micro and Macro Environments have a important role on every marketing plan especially on digital platform. In order to be successful in organisation’s marketing execution, these two tools need to be considered during the decision making process.