Analysing the Market Environment – CBSE Notes for Class 11 Entrepreneurship
Facts That Matter
1. Excellent companies take an outside-inside view of the market and its forces.
2. A market is an arrangement of establishing effective relationship between buyers and sellers of the commodities.
3. Consumer is the King.
4. The market environment refers to factors and forces that affect a firm’s ability to build and maintain successful relationship with customers.
5. The various factors and forces governing the market can be categorized into:
(i) Micro Environment – Primary Forces, and
(ii) Macro Environment – Secondary Forces
6. Micro Environment refers to the forces operating in the market that are close or within the organisation, comprising of:
(v) Marketing intermediaries
7. Macro Environment refers to all forces that are part of the larger society and are the “uncontrollables”to which companies adopt through setting the “controllable”factors.
8. Macro environment comprises of:
(i) Demographic forces
(ii) Economic forces
(iii) Technological forces
(iv) Political forces
(v) Natural forces
(vi) Cultural forces.
Words That Matter
1. Consumer: A consumer is a person or organization that uses economic services or commodities.
2. Market Environment: The market environment is a marketing term and refers to factors and forces that affect a firm’s ability to build and maintain successful relationships with customers.
3. Macro-Environment: The macro-environment refers to all forces that are part of the larger society and affect the micro-environment. It includes concepts such as demography, economy, natural forces, technology, politics, and culture.
4. Natural Environment: The natural environment is another important factor of the macro ¬environment. This includes the natural resources that a company uses as inputs that affect their marketing activities.