Micro Environment Factors Financiers Suppliers Public Customers Compe tors Micro Environment Marke ng Channel Members This refers to those factors which are in the immediate environment of a business affecting its performance. These include the following: i) Financiers: The financiers of a business which includes the debenture holders and financial institutions play a significant part in the running of a business. Their financial capability, policies strategies, attitude towards risk and ability to give non–financial assistance are all important to a business. ii) Suppliers: In any organisation the suppliers of raw materials and other inputs play a very vital role.
Timely procurement of materials from suppliers enables continuity in production and reduces the cost of maintaining stock/inventory. Organisations generally obtain supplies from a panel of suppliers instead of relying on a single source. Organisations have realised the importance of nurturing and maintaining good relationship with the suppliers. iii) Marketing Channel members: The marketing inter-mediaries serve as a connecting link between the business and its customers .The middlemen like dealers, wholesalers and retailers ensure transfer of product to customers .physical distribution is facilitated by transporters, and warehouses help in storing goods.
Market research agencies help the firm to understand the needs of the customers while advertising agencies help in promoting the products and services. Insurance firm is another marketing intermediary which provides coverage for risk in business. iv) Public: This refers to any group like media group, citizen action group and local public which has an impact on the business. The public group has the ability to make or mar a business.
Many companies had to face closure due to actions by local public. v) Customers: The aim of any business is to satisfy the needs of its customers. The customer is the king and the fulcrum around which the business revolves. Hence it is essential for any business to understand the needs of its varied customers like individuals, retailers, wholesalers, industries and government sector.
Customer relationship management aims at creating and sustaining cordial relations with customers. vi) Competitors: All organisations face competition at all levels local, national and global. Competitors may be for the same product or for similar products. It is important for a business to understand its competitors and modify their business strategies in the face of competition.
12th Commerce Unit - - . . PM For example. the closure of Sterlite Copper factory in Thoothukudi due to protests by environment protection group in .