Menu Close

Micro Environment | Micro Environment Factors

Share this post:

Micro Environment:

Micro environment refers to the environment that is directly in the business organization and can directly influence the regular business activities. It is connected to a small area in which the firm works.

The micro environment is a collection of all the forces that are close to the firm. These forces are very special for the said business only. They can affect the performance of the company and the operation of the day, but only for the short term. Its elements of micro environment include suppliers, competitors, marketing intermediaries, customers and the firm itself.

The 6 Factors associated with the Micro Environment – Customers, Employees, Competitors, Media, Shareholders, and Suppliers.

Micro Environment Factors:


The goal of business enterprises is to make a profit by meeting the customer’s demand. Now it thinks more in terms of profitable sales rather than more sales volume for its sale. Today, a firm’s marketing starts and ends with customers.
To be successful, a business firm must search for customers for their products. This is the reason why the customers thus form the most important element in the microscopic environment of the business. Sales of the product mainly depend on the degree of consumer satisfaction.

In fact, this is a reason that gives more satisfaction to customer satisfaction. Now every business firm set-up system looks at customer’s attitudes and customer satisfaction on a regular basis because today it is widely acknowledged that customer satisfaction is the basis of the company’s success. Generally, customers are not in the same group, they are individuals, business ventures, institutions, and governments.


Employees must be appointed with relevant skills and experience. This process starts in the recruitment phase and continues throughout the employment of an employee through ongoing training and promotions opportunities. Training and development of an employee play an important role in achieving a competitive edge; Especially in the service sector marketing If a business employs employees without motivation, skill or experience, then it will affect customer service and ultimately sales.


Suppliers are either individuals or business houses. They combined together; Providing necessary resources by the company Now the company must go to develop specifications, discover potential suppliers, identify and analyze suppliers, and then select those suppliers, which are quality, distribution reliability, credit, warranty and clearly Provide the best mix of low cost.

Suppliers provide businesses with the materials they need to do their business activities. The supplier’s behavior will directly influence the business that he supplies. For example, if a supplier provides poor service, then it can increase the scale of the time or the quality of the product. An increase in the prices of raw materials will affect the marketing mix strategy of an organization and even force value addition. Close supplier relationship is an effective way to stay competitive and secure quality products.


As organizations need investment to grow, they can decide to raise money by floating on the stock market, which means that they can be transferred from private to public ownership. The introduction of public shareholders brings new pressures because the public shareholders want a return from the money invested in the company. To increase profit, shareholder pressure will affect organizational tactics. It is necessary to manage relationships with shareholders carefully because increasing profits in the short term can have an impact on the long-term success of the business.


The attention of positive media can create an organization (or its products) and the attention of negative media can “break” an organization. Organizations need to manage the media so that the media can help in promoting positive things about the organization’s products and services and reduce the impact of negative events on their reputation. Some organizations will also appoint PR advisors to help in the management of a particular event.

Consumer television programs with a broader and more direct audience can also have a powerful impact on the success of an organization. Some businesses recognize this and when consumers are mentioning that they are going to contact the newspapers about the consumer television program or business, their reaction will change.


In a competitive environment, there are some basic things that every firm has to pay attention to. Any company, no matter how big, is monopolized. In the world of basic business, a company faces different forms of competition. The most common competition that a company faces is that it deals with differentiated products from other companies.

Competitive analysis and monitoring are critical to maintain or improve its position within an organization’s market. If a business is unaware of the activities of its opponent, it would be very difficult to “beat” their rivals. For example, the market can move very fast, through changes in business conditions, consumer behavior or technological advances. It is important to check the reactions of competitors for these changes as a business so that you can maximize the impact of your reaction.

According to Philip Kotler, the best way to understand the full range of your competition for a company is by a buyer’s perspective. What does a buyer think about what ultimately leads to buying something? So, determining the consumer’s set of brains will help maintain market share for all the companies.

Also read: Types of Environment , Macro Environment , Concept of Management , Nature of Management , Managerial Skills , Coordination as Essence in management , Socio-Cultural Environment

Share this post:


  1. Lindsay Burns

    Very informative and extremely organized article. I appreciate that all my questions were answered & I’d like to thank you for that.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts