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Impact of micro environment on marketing decisions for Marketing Management MCOM sem 2 Delhi University

Impact of micro environment on marketing decisions for Marketing Management MCOM sem 2 Delhi University

Impact of micro environment on marketing decisions for Marketing Management MCOM sem 2 Delhi University

Marketing management is the organizational discipline which focuses on the practical application of marketingorientation, techniques and methods inside enterprises and organizations and on the management of a firm’s marketing resources and activities.


Marketing management employs tools from economics and competitive strategy to analyze the industry context in which the firm operates. These include Porter’s five forces, analysis of strategic groups of competitors, value chain analysis and others.Depending on the industry, the regulatory context may also be important to examine in detail.

In competitor analysis, marketers build detailed profiles of each competitor in the market, focusing on their relative competitive strengths and weaknesses using SWOT analysis. Marketing managers will examine each competitor’s cost structure, sources of profits, resources and competencies, competitive positioning and product differentiation, degree of vertical integration, historical responses to industry developments, and other factors.

Marketing management often conduct market research and marketing research to perform marketing analysis. Marketers employ a variety of techniques to conduct market research, but some of the more common include:

  • Qualitative marketing research, such as focus groups and various types of interviews
  • Quantitative marketing research, such as statistical surveys
  • Experimental techniques such as test markets

Observational techniques such as ethnographic (on-site) observation

Impact of micro environment on marketing decisions for Marketing Management MCOM sem 2 Delhi University

Marketing managers may also design and oversee various environmental scanning and competitive intelligence processes to help identify trends and inform the company’s marketing analysis.

  • Microenvironment (business), nearby factors that affect a company’s ability to serve its customers, such as the company itself, suppliers, marketing intermediaries, customer markets and the public

Market environment

The business environment is a marketing term and refers to factors and forces that affect a firm’s ability to build and maintain successful customer relationships. The three levels of the environment are:

  • Micro (internal) environment – small forces within the company that affect its ability to serve its customers.
  • Meso environment – the industry in which a company operates and the industry’s market(s).
  • Macro (national) environment – larger societal forces that affect the microenvironment.

Impact of micro environment on marketing decisions for Marketing Management MCOM sem 2 Delhi University

The Impact Of Micro and Macro Environment Factors on Marketing

There are two kinds of external marketing environments; micro and macro. These environments’ factors are beyond the control of marketers but they still influence the decisions made when creating a strategic marketing strategy.

Micro Environment Factors

  • The competition: Those who sell same or similar products and services as your organisation are your market competition, and they way they sell needs to be taken into account. How does their price and product differentiation impact you? How can you leverage this to reap better results and get ahead of them?
  • The suppliers: Suppliers can control the success of the business when they hold the power. The supplier holds the power when they are the only or the largest supplier of their goods; the buyer is not vital to the supplier’s business; the supplier’s product is a core part of the buyer’s finished product and/or business.
  • The resellers: If the product the organisation produces is taken to market by 3rdparty resellers or market intermediaries such as retailers, wholesalers, etc. then the marketing success is impacted by those 3rd party resellers. For example, if a retail seller is a reputable name then this reputation can be leveraged in the marketing of the product.
  • The general public: Your organisation has a duty to satisfy the public. Any actions of your company must be considered from the angle of the general public and how they are affected. The public have the power to help you reach your goals; just as they can also prevent you from achieving them.
  • The customers: Who the customers are (B2B or B2C, local or international, etc.) and their reasons for buying the product will play a large role in how you approach the marketing of your products and services to them.

Impact of micro environment on marketing decisions for Marketing Management MCOM sem 2 Delhi University

Macro Environment Factors

  • Social and cultural forces: The impact the products and services your organisations brings to market have on society must be considered. Any elements of the production process or any products/services that are harmful to society should be eliminated to show your organisation is taking social responsibility. A recent example of this is the environment and how many sectors are being forced to review their products and services in order to become more environmentally friendly.
  • Demographic forces: Different market segments are typically impacted by common demographic forces, including country/region; age; ethnicity; education level; household lifestyle; cultural characteristics and movements.
  • Natural/physical forces: The Earth’s renewal of its natural resources such as forests, agricultural products, marine products, etc must be taken into account. There are also the natural non-renewable resources such as oil, coal, minerals, etc that may also impact the organisation’s production.

Impact of micro environment on marketing decisions for Marketing Management MCOM sem 2 Delhi University syllabus:

Objective: To familiarize the students with the basic concepts and principles of marketing and to develop their conceptual and analytical skills to be able to manage marketing operations of a business firm.


Unit I-Introduction: Nature and Scope of Marketing; Core Marketing Concepts; Evolution of modern marketing concept; Modern marketing concepts; Marketing Mix; Marketing management process-a strategic perspective; Customer quality, value and satisfaction; Planning and control. Marketing Environment: Significance of scanning marketing environment; Analyzing macro environment of marketing-economic, demographic, socio-cultural, technological, political and legal segments; Impact of micro and macro environment on marketing decisions. Buyer behaviour: Need for studying buyer behaviour; Consumer vs. business buying behaviour; Consumer buying decision process and influences; Industrial buying process. Market Segmentation, Targeting and Positioning: Bases for segmenting a consumer market; Levels of market segmentation; Factors influencing selection of market segments; Criteria for effective market segmentation; Target market selection and strategies; Positioning – concept, bases and process.

Unit II-Product and Pricing Decisions: Product – concept and classification; Major product decisions; New product development; Packaging and labelling; Product support services; Branding decisions; Product life cycle – concept and appropriate strategies adopted at different stages. Pricing- Objectives, Factors affecting price of a product, Pricing policies and strategies. Ethical issues in product and pricing decisions.

Unit III-Distribution Decisions: Channels of distribution – concept and importance; Different types of distribution middlemen and their functions; Channel management, selection, motivation and performance appraisal of distribution middlemen; Distribution logistics – concept, importance and major logistics decisions; Channel integration and systems. Ethical issues in distribution decisions. Retailing and Wholesaling: Types of retail formats; Retail theories; Retailing strategies; Non-Store retailing; Wholesaling-nature and importance, types of wholesalers; Developments in retailing and wholesaling in Indian perspective.

Unit IV-Promotion Decisions: Role of promotion in marketing; Promotion methods; Integrated Marketing Communication – Concept; Communication process and promotion; Determining promotion mix; Factors influencing promotion mix; Developing advertising campaigns. Ethical issues in promotion decisions.

Unit V- Marketing Planning, Organising and Control: Marketing planning process; Different ways of organising marketing department; Sales, cost and profit analysis.

Unit VI-Trends in Marketing: Service Marketing, Social Media Marketing, Green Marketing, Customer Relationship Management, Rural marketing, other emerging trends.

Impact of micro environment on marketing decisions for Marketing Management MCOM sem 2 Delhi University

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