COLLEGE OF BUSINESS & ECONOMICS

DEPARTMENT OF MANAGEMENT
SECTION 3
PRICIPLE OF MARKETING
GROUP ASSIGNMENT
NAME ID
1. Misha Shiferaw----------------------UGR/0112/14
2. Misaye Gedil-------------------------UGR/3562/14
3. Halid Rahmetu-----------------------UGR/2076/14
4. Filphos Abebaw----------------------UGR/0039/14
5. Getachew Dires----------------------UGR/9229/14
6. Ibrahim Nibras-----------------------UGR/6210/14
7. Getu Hola-----------------------------UGR/6666/14
 Submitted to; Mr. Fuad

Submission date; June, 2023

1. The Marketing Environment

The marketing environment is made up of a variety of internal and external environmental

variables and elements that have an impact on how well a corporation can service its clients.
Every component that might have an impact on a business' capacity to engage with its clients is
included in the marketing environment. Understanding internal and external environmental
influences is crucial.

The climate for marketing presents both opportunities and threats. In order to retain success and
address any threats or opportunities that may affect their work, marketing managers must be
aware of the marketing environment. The ability of a company to manage its marketing
initiatives within its environment is crucial for successful marketing. A marketing environment is
wide and diversified, including aspects that can be controlled and those that cannot be controlled.

A marketing environment is 

Dynamic: This means that the elements that influence it vary over time.
Uncertain: Market factors can be unpredictable. You might experience unforeseen risks or
possibilities in your marketing endeavors.
Relative: Marketing environments are specific to each organization.

An organization functions in an external environment that it typically has no control over.

External factors come in two tiers: External Micro- environment
External Macro- environment

1.1. The External Macro- environment

A marketing environment's macro components are all outside pressures and variables that affect
the entire sector as a whole rather than just one business. An organization cannot control all of

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the variables that make up a macro marketing environment. Any one of them has the potential to
alter one or more of the others. As a result, they are connected. A marketing company operates
in a bigger macro-environment that is shaped by forces that present opportunities and dangers to
the organization's performance. The macro environment is made up of the six items listed below.
Let's examine each of them individually.

1.1.1. Technological environment

Due to its constant change, technology is one of the factors that have a tremendous potential to
affect an organization's business. Technology presents a number of opportunities and risks to the
business environment. Access to information is almost limitless for both consumers and
businesses, enabling consumers to make more educated purchasing decisions and posing a
challenge for businesses to find ways to analyze the vast volumes of data they produce. The
design, manufacture, distribution, and advertising of products have a lot of promise because to
advancements like the microchip, robots, and satellite communications. Technological
innovations have the power to launch whole new sectors, drastically change or even wipe out
already existing ones, and stimulate markets and industries unrelated to the new technology.

1.1.2. Demographic environment

The demographic environment component of the macro marketing environment is made up of

people who make up a market. The demographic environment's population can be classified
depending on criteria such as age, gender, density, size, location, race, and occupation, among
others. All of these aspects create market problems and opportunities. Firms can focus products
to specific market segments by researching the requirements and preferences of demographic
groupings. The demographic environment is an important component for business since the
company designs and manufactures its products based on its observations of the demographic
environment.

1.1.3. Social-cultural environment

The social-cultural component of a macro-environment is created by the values, lifestyle, culture,

beliefs, and prejudices of a business's target audience. The social-cultural context differs from
region to region. Culture, in particular, is a social force that includes the collection of values,

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ideas, and attitudes shared by a homogeneous group of people and passed down from generation
to generation. Because culture contains both material and abstract parts, tracking cultural
developments is challenging but necessary for marketing. Values and interests differ from
country to country, offering fresh market potential as well as communication obstacles for
organizations attempting to enter unknown new markets. Social and cultural variables can have a
significant impact on marketing strategy.

1.1.4. Economic environment

The economic environment component is a sort of component that has an impact on all
industries. Buyers' purchasing power and spending habits are influenced by the economic
climate. Markets require both buyers and their purchasing power. Current income, prices,
savings, and credit all influence total purchasing power. Marketing organizations should be
aware of important income developments as well as shifting customer buying patterns. Firms
use economic data to determine whether to enter or quit geographic markets, invest in expansion,
and hire or lay off personnel. Because any event can be a threat to one organization and an
opportunity for another, economic forces should not be presumed to be inherently good or bad.

1.1.5. Political-legal environment

A country's political-legal environment comprises of its laws and policies. Political-legal

developments, such as taxation, tariffs, trade agreements, labor rules, and environmental
regulations, have a significant impact on marketing decisions. Regulatory factors constrain,
guide, and affect marketing and larger business decisions for any corporation. Although
corporations do not make direct government policy decisions, many industries and firms
participate in lobbying activities to influence government policy formulation in order to generate
opportunities or eliminate dangers. Regulations exist to safeguard both marketing corporations
and consumers.

1.1.6. Natural environment

The natural environment has always been an important aspect of human commercial activity
since it provides natural resources for manufacturing and energy generation. Every day, the
natural environment has a greater impact on businesses as resources grow scarcer and more

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expensive. The natural environment includes land, water, air, minerals, forests, animals, and
other basic materials, among other things. The natural environment primarily consists of natural
resources that are required as inputs by marketing organizations or are influenced by marketing
operations.

1.2. The External Micro- environment

The external microenvironment of marketing consists of influences close to but not part of the
firm that affect its ability to service its clients. The microenvironment of a business is made up of
all the variables and forces that are directly related to the company. The following are the various
components of the external micro environment.

1.2.1. The market

A market is the demand for an item or service expressed by a specific set of potential buyers.
There are three things to consider when determining market demand for any particular
commodity or service: People or groups having desires, purchasing power, and purchase
behavior. Customers constitute the true market for goods and services. Their personal traits,
including their purchasing habits, spending patterns, standard of living, education, cultural and
religious values, attitude, and so on, influence all of a company's marketing and business
operations.

1.2.2. Suppliers

Suppliers are a vital component of any business. A corporation can only be successful if its
suppliers provide high-quality materials on time. Suppliers who supply specialist items or
manage scarce resources may have an advantage in a relationship. A corporation that requires
commodities resources such as oil, wheat, or aluminum in its operations, on the other hand, will
have numerous suppliers to select from and may easily swap providers if the price or quality is
better from another partner. Marketing businesses cannot sell a product unless they first
manufacture or purchase it.

1.2.3. Market intermediaries

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Market intermediaries are third parties who assist businesses in promoting, selling, and
distributing their products in the market. Wholesalers, retailers, and distributors are all examples
of market intermediates. When marketing companies are unable to reach the target market
directly, the function of these intermediates becomes crucial and can influence
management decisions. Market intermediates play an important role in the industry.

1.2.4. Competitors

Competitors are other firms that sell similar items to yours or are members of the same industry
strategy group. To be successful, a company must be able to outperform its competitors in terms
of consumer value. The type, amount, and extent of competition frequently influence a
firm's Competitors are one of the most powerful influences in the organization's
microenvironment.

1.3. The Organization’s Internal Environment

The internal environment of a business is made up of factors within the organization, such as
present personnel, policies, production activities, management, and, most importantly, corporate
culture which defines employee behavior. The marketer has authority over an organization's
internal environment, which he can adjust or adapt depending on market demand and business
requirements. The internal environment influences not just employees' actions and choices, but
also their conduct within the organization. The internal environment variables shift in response to
changes in the external marketing components.

2. The Marketing Information

The marketing information system encompasses all of the facts and information utilized in
making marketing decisions and that will affect the enterprise's marketing activity. Marketing
managers require information at nearly every stage of marketing analysis, strategy,
implementation, and management. They require information on customers, competitors, dealers,
and other market forces. However, the marketing department's information needs differ from
those of other departments. This is because marketing information is more concerned with
external activities that are dynamic and diversified. Important information is either delivered too
late to be useful, or timely information is inaccurate.

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A marketing information system is a set of procedures for gathering and analyzing data for the
goal of making marketing choices. These marketing decisions have far-reaching consequences
for the organization's marketing activity. Marketing departments are likewise very sensitive to
market fluctuations. For the sake of existence, they must constantly adapt to changes in their
environment. This is possible if they have information on the changes that are going place.

2.1. The Marketing Information System

A marketing information system (MIS) is a combination of different technologies and resources

used by marketers to retrieve data and generate information for decision-making. These systems
combine many data sources and analysis methodologies to provide a full view of a product
market's internal and external aspects. A marketing information system is made up of people,
equipment, and procedures that are used to collect, sort, analyze, evaluate, and deliver needed,
timely, and correct information to marketing decision makers. Marketing managers are at the
heart of the marketing information system. The marketing information system provides managers
with information in the correct format and at the right time to assist them with marketing
analysis, planning, implementation, and management.

2.2. Assessing Information needs

A successful marketing information system balances the information that managers want with
what they actually need and what is practicable to deliver. A needs assessment might be
conducted by conducting individual interviews, holding a focus group discussion, or asking
potential users to complete a questionnaire. It is critical to collect only necessary information.
Excessive information might be perplexing. Finally, the corporation must determine whether the
advantages of having a piece of information outweigh the costs of supplying it.

2.3. Developing information

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Marketing managers can receive the information they require from internal corporate data and
marketing research. This information is then processed by the information analysis system to
make it more valuable to management.

 Internal Records

The internal records component of a marketing information system provides information about

your company's marketing and sales departments. The company's accounting division prepares
financial statements and maintains thorough records of sales and orders, expenses, and cash
flows. Production schedules, shipments, and stocks are all covered in manufacturing reports.
Information on reseller reactions and competition activity is reported by the sales team. The
customer service department reports data on client satisfaction or service issues. You may
increase marketing functions and attract more clients by better knowing the internal strengths
and weaknesses of your business. Since your firm already has all the necessary information,
getting and storing internal records for a marketing information system is usually simple.
However, because it was gathered for another reason, it can be inaccurate or in the inappropriate
format for use in marketing decisions.

 Marketing Intelligence

Marketing intelligence is a comprehensive field that emphasizes studying the complete external
market to comprehend how your rivals and clients operate and respond. This component
frequently entails information gathering through conversations with partners and suppliers,
holding product feedback sessions, and reviewing performance reports of competitors, as
opposed to employing automated methods.

The print and electronic media, which frequently provide news items and segments about various
businesses and product marketplaces, is another typical method for gathering market
intelligence. The company's leadership team, engineers and scientists, buying agents, and sales
staff are also excellent sources of information. The business might also observe what its rivals
are doing by purchasing and examining their goods, keeping track of their sales, and looking for
new patents.

 Marketing research

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The marketing research component focuses on identifying new opportunities or resolving
specific issues in your market. Marketing research for issue-solving include establishing a
problem, investigating its specifics in your market, and developing a solution based on your
study. Marketing research defines the data needed to address a marketing issue, plans the
approach for gathering data, and coordinates and puts into practice the data collection process.

The activities of marketing researchers have increased considerably. The most frequently
performed tasks include market potential analysis, market share analysis, market features
analysis, sales analysis, and business trend research, short-term forecasting, etc. You can conduct
market research using both internal and external sources.

2.4. The Marketing Research Process

The successive steps of the marketing research procedure let you concentrate your efforts on
comprehending and resolving client difficulties.

 Defining the Problem and Research Objectives

The marketing manager and the researcher must collaborate closely to carefully describe the
issue and come to an understanding on the study's goals. It's a good idea to start with the end in
mind while carrying out an efficient marketing research procedure. Briefly, what do you hope to
achieve with your research? You'll be able to recognize and frame the particular client problems
you want to research and address if you have a clear knowledge of the objective you're trying to
achieve.

At this stage, more participation from skilled marketing researchers who comprehend the
manager's issues is recommended. The researcher must be able to work with the manager to
clarify the issues and suggest methods that research might aid in decision-making. When you
frame a problem too broadly, it becomes ambiguous. If you focus too much, you could not
comprehend enough.

 Developing the Research Plan

The research design serves as your guide. It specifies the information you will gather, who you
will obtain it from, how and when you will gather it, and how you will analyze it after you have

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it. The strategy specifies secondary data sources and the precise research strategies, contact
methods, sampling schemes, and tools that will be employed to collect primary data.

o Gathering Secondary Information

The internal documents of your business are a source of secondary data. Any data you gather as
part of your efforts to gather marketing intelligence is also valid. Syndicated research is also
available for purchase. Marketing research organizations regularly gather primary data, which
they then sell to other businesses as syndicated research. Government papers, periodicals, and
books, as well as commercial data, are other sources of secondary data. In most cases, secondary
data can be acquired faster and cheaper than primary data. Being a little suspicious of secondary
information is always a good idea because the required data might not exist, and secondary
sources are rarely able to provide researchers with all the information they require.

o Planning Primary Data Collection

When you conduct primary research, you will collect quantitative and qualitative data about your
target audience. Making choices on research methodologies, sampling strategies and research
tools is necessary when creating a plan for primary data collecting.

o Observational Research

Observational research is the collection of primary data by observing relevant individuals,

behaviors, and situations. Observational research is a form of research technique in which the
researcher watches and documents how people or groups behave in their natural surroundings. In
other words, the researcher merely observes and describes what is happening without interfering
or changing any variables. Information that people are unable or unwilling to offer can be
gathered using observational study. In some circumstances, observation could be the only viable
option for gathering the required data.

o Survey Research

As a component of your overall research methods, surveys are important primary research tools
that generate data. Survey research is the greatest method for acquiring descriptive information.
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A business can frequently learn about people's knowledge, attitude, preferences, or purchasing
habits by simply asking them. The obtained data is then statistically examined to find trends and
connections between variables and to make inferences about the population under study. The
flexibility of survey research is its main benefit. In a variety of marketing contexts, it can be
used to gather a wide range of information.

o Experimental Research

In experiments, matched groups of subjects are chosen, various treatments are administered to
them, irrelevant variables are controlled, and individual subject responses are compared. It is
possible to identify correlations between the factors used and their effects on each group by
analyzing the findings of this kind of study. Information gathering techniques for experimental
research may include observation and surveys.

o Contact Methods

There are numerous ways to communicate, including in-person encounters, phone conversations,
letters, faxes, and emails.

o Sampling Plan

Typically, marketing experts use a tiny sample of the entire customer community to establish
conclusions about huge groups of consumers. It is rarely possible to gather data from every
member of a group of individuals when conducting research on them. In its place, you pick a
sample. The population that will actually take part in the study is the sample. To accurately
estimate the attitudes and actions of the larger population, You must carefully consider how you
will choose a sample that is representative of the group as a whole if you want to make accurate
conclusions from your data.

o Research Instruments

In collecting primary data, the questionnaire is by far the most common instrument. A
questionnaire is a type of research tool used to collect data from respondents by asking them a
series of questions. One way to think of questionnaires is as a type of written interview. They can
be conducted in-person, over the phone, online, or by mail. A questionnaire is used to collect

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information from respondents about their views, experiences, or opinions. You can gather
quantitative and/or qualitative data with questionnaires. The marketing researcher must choose
the questions to ask, their format, their language, and the order in which they should be asked
when creating a questionnaire. Closed-ended To enable decision-making, questions include all
viable responses. Respondents are free to use their own language when responding to open-
ended questions.

o Presenting the Research Plan

The marketing researcher should now put the plan in writing as a proposal. When conducting a
significant and involved research endeavor, a written proposal is very crucial. A detailed
research plan or proposal ensures that the marketing manager and researchers have taken into
account all the crucial parts of the study and are in agreement regarding the purpose and
methodology. A research implementation plan is a framework outlining the actions that people or
teams must do in order to carry out a strategic action process for various types of corporate
processes, procedures, and operations. It is a way of describing how you (or a group or
organization) will go about achieving particular goals or objectives. 

 Implementing the Research Plan

The researcher then implements the marketing research plan. This includes gathering, handling,
and evaluating the data. The part of marketing research that involves gathering data is typically
the most costly and error-prone. To extract crucial data and findings, the gathered data must be
processed and examined. Data from surveys are coded for computer analysis after being verified
as accurate and comprehensive. The researcher then uses customary computer programs to
tabulate the findings, compute averages, and perform other statistical calculations.
Your research's conclusions should operate as a road map for specific steps your organization
can take to enhance operations or strengthen client connections.

 Interpreting and Reporting the Findings

The goal of developing a market research report is to make informed decisions about business
concepts. Through interviews with prospective customers, market research is done to assess the
viability of a new good or service. Major findings from the study should be presented so that

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management can use them when making important choices. The process of interpretation is
crucial to marketing. When interpreting research findings, managers and researchers must
collaborate closely. Both parties are accountable for the research process and the conclusions that
follow.

o Information Analysis

Managers frequently need more assistance applying data acquired by the company's marketing
intelligence and marketing research platforms to marketing decisions and issues. This assistance
can come in the form of more complex statistical analysis so that you can discover more about
the relationships among a set of data and their statistical dependability.

o Distributing Information

The information obtained through marketing intelligence and marketing research must be given
to the appropriate marketing managers at the appropriate time. For regular planning, execution,
and control decisions, managers require routine reporting. Numerous organizations are
decentralizing their marketing information systems because of recent advancements in
microcomputer technology. Managers now have direct access to data that is kept in the systems.
This enables the managers to quickly and immediately obtain the information they require and
customize it to meet their own needs.

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3. Reference

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Examples. Marketing91. https://www.marketing91.com/marketing-environment/

Udoagwu,, K. (2022, May 25). What Is a Marketing Environment? Wrike.

https://www.wrike.com/blog/what-is-marketing-environment/

(n.d.). A Firm's External Macro Environment: PESTEL. Openstax.

https://openstax.org/books/principles-management/pages/8-3-a-firms-external-macro-
environment-pestel

M (2022, February 5). THE MACRO ENVIRONMENT IN MARKETING – WHY IS IT

IMPORTANT AND HOW TO WORK WITH IT? Marketing-Insider. https://marketing-
insider.eu/macro-environment-in-marketing/

(2023, March 29). What Is Macro Environment? Financestrategists.

https://www.financestrategists.com/wealth-management/macroeconomics/macro-environment/

(n.d.). Assessing information needs. Source. https://asksource.info/support/manual/

(n.d.). Marketing research process guide. Surveymonkey.

https://www.surveymonkey.com/market-research/resources/marketing-research-process-guide/

(n.d.). Types of survey research. Surveymonkey. https://www.surveymonkey.com/mp/3-types-

survey-research/

Bhandari, P. (2015, June 12). Questionnaire Design | Methods,. Scribbr.

https://www.scribbr.com/methodology/questionnaire/

(2020, October 9). What is a Research Instrument? Discoverphds.

https://www.discoverphds.com/blog/research-instrument

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