25 Important Marketing Environment Questions and Answers [Notes with PDF]

The second chapter of our marketing learning course is “Marketing Environment”. In this article, we’ll learn the 25 most important marketing environment questions and their answers.

If you read every question and its answers carefully, you will be able to prepare for the marketing course in a very good way.

You can read the first chapter of our free “Marketing learning course” here if you missed it.

By reading this post, you may quickly prepare for any competitive tests such as school and college exams, vivas, job interviews, and so on.

So let’s get started…

Marketing Environment Questions and Answers:

The following are the 25 important marketing environment questions and answers:

Question 01: What is the environment?

Answer: The surrounding conditions, elements, or forces of a place or region in which people live and an organization is engaged in achieving its objectives are referred to as the environment.

On the one hand, there are natural elements such as topography, climate, rivers, hills, mountains, and forests, among others.

On the other hand, unnatural elements such as education-culture, science-technology, law, economy, religious beliefs, politics, and so on exist.

In a nutshell, the environment refers to all of the natural, social, and economic elements that surround man and are necessary for his survival.

Question 02: What is the concept of a “marketing environment”?

Answer: External and potential forces and entities that influence the marketing of products, services, or ideas are referred to as marketing environments.

The marketing environment includes factors such as buyers, sellers, suppliers, people, the country’s social, cultural, and political conditions, and so on that influence marketing activities.

That is, the marketing environment is comprised of a variety of external factors and forces that affect marketing management’s ability to build and maintain successful relationships with the intended consumers.

Question 03: What is the relationship between the environment and the marketing environment?

Answer: The environment encompasses the soil, air, plants, animals, rivers, moon, sun, human behavior, race, religion, education, language, culture, government, a system of governance, and so on that surround us.

In contrast, the marketing environment is regarded as a component of the overall environment.

An organization’s marketing environment consists of the elements that influence product marketing.

On the other hand, the natural environment, such as soil, air, rivers, and so on, affects the marketing environment; on the other hand, the unnatural environment, such as buyers, sellers, the country’s social, cultural, and political conditions, technology, and so on, affects the marketing environment.

Because the marketing environment is a component of the overall environment, it is greatly influenced by it and has a close relationship with it.

Question 04: Why is it important to study the marketing environment?

Answer: The following are the benefits of studying marketing:

  1. Recognizing and anticipating business trends
  2. Recognizing threats and opportunities
  3. Long-term planning
  4. Keeping up with the competition
  5. Recognizing Changes
  6. Situational adaptation
  7. Gathering information
  8. Immediate assessment of the situation
  9. Recognizing one’s own strengths and weaknesses
  10. Establishing guidelines
  11. Foreseeing problems
  12. Marketing and Society

Question 05: What are the types of marketing environments?

Answer: The types of marketing environment are as follows:

  1. Micro Environment
  • Company
  • Suppliers
  • Intermediaries
  • Customers
  • Competitors
  • Public

2. Macro Environment

  • Demographic
  • Natural
  • Economic
  • Technological
  • Political
  • Cultural

Question 06: What is the micro-environment?

Answer: The micro-environment consists of the controllable aspects, strengths, and elements of the marketing environment.

The controllable parties, energy, and material that directly affect the marketing activities are called micro-environments.

Such aspects of the environment, energy, and surrounding elements directly influence marketing operations. In this case, the behavior of the smallest elements of the marketing environment and their functions are discussed separately.

That is, the micro-environment includes all of the forces that are closely associated with the company and have an impact on its customer services capacity, such as suppliers, marketing intermediaries, buyer markets, competitors, and the population.

Question 07: Why is the micro-marketing environment controllable?

Answer: The micro marketing environment refers to the controllable parties, energy, and materials that have a direct impact on marketing activities.

Companies, suppliers, intermediaries, buyers, competitors, populations, and so on are all components of a micro-marketing environment.

These environmental elements are under the marketer’s direct or indirect control. For example, the company has direct control over all departments and surfaces.

Furthermore, direct control can be imposed on any of the other elements, as well as indirect control on any of them. As a result, the micro-marketing environment can be said to be under the control of direct or indirect marketers.

Question 08: What is the macro-environment?

Answer: All elements of the macro marketing environment are driven by external and uncontrollable forces. The overall environment can create both risks and opportunities for the company.

Therefore, the macro environment is the combined effect of uncontrollable energy that indirectly affects marketing activities.

That is, the macro environment is made up of the forces that influence the micro-environment from the largest society, the population, economic, natural, technological, political, and cultural forces.

Question 09: What are the elements of the micro-environment?

Answer: The elements of the micro-environment are as follows:

  • Company
  • Suppliers
  • Intermediaries
  • Customers
  • Competitors
  • Public

Question 10: What are the elements of the macro-environment?

Answer: The elements of the macro-environment are as follows:

  • Demographic environment
  • Economic environment
  • Natural environment
  • Technological environment
  • Political and social environment
  • Cultural environment

Question 11: Why are the elements of the macro environment uncontrollable?

Answer: The term “macro environment” refers to the uncontrollable energy that has an indirect impact on marketing activities.

Demography, the economy, nature, technology, politics, society, culture, and so on are examples of macro-environmental elements. Some of these elements are God-given, while others are man-made.

The marketer cannot, under any circumstances, control the ingredients alone. Although some aspects of the macro environment may be affected collectively, it is not possible for the marketer to do so alone.

As a result, the macro environment of marketing is uncontrollable.

Question 12: How does the environment affect marketing?

Answer: The environment has an impact on marketing functions both directly and indirectly. The surrounding conditions, elements, or forces of a place or region in which people live and an organization is engaged in achieving its objectives are referred to as the environment.

Market research, purchasing, selling, transportation, warehousing, advertising, and other marketing activities are examples of marketing activities.

The environment has a significant impact on each of these jobs.

As an illustration. Marketing activities in the hilly, desert, and plain areas will never be the same. Again, the marketing functions of the economically developed world and the economically underdeveloped world must be distinct.

That is to say, the environment has an impact on every marketing act.

Question 13: What impact do competitors have on product marketing?

Answer: Competitors are those who have an impact on an organization’s marketing activities by offering similar products or services.

Marketing is heavily influenced by competitive products. The competitor attempts to create a positive attitude toward their products among buyers through various activities such as quality, price, advertisement, sales promotion, and so on.

Buyers are drawn to competitive products as a result of this. Adopt marketing strategies that take into account your competitors’ current and potential strengths, abilities, and weaknesses.

Question 14: How does the company influence marketing?

Answer: A company is a legal entity made up of a few people. A company has various departments. Purchase departments, sales departments, manufacturing departments, finance departments, R&D departments, accounting departments, marketing departments, and so on.

The work efficiency of these interdependent departments is critical to the company’s efficiency and reputation.

The activities of all these departments are controlled by the top management. Top management determines the company’s goal-objective strategy and policy.

According to the decision of the top management, the marketing department prepares the plan and arranges it for its implementation.

Marketing is one of the most important parts of the company. The functions of the marketing department are conducted with the help of other departments.

This department tries to increase the sales of the product and gives necessary advice to the production department to improve the quality of the product.

The job of the research and development department is to improve the quality of existing products and create new products.

This work is done through effective communication with the production department.

The purchasing department arranges for the supply of the necessary materials to the company.

The finance department arranges the necessary funds. The job of the accounting department is to calculate the cost and profit loss.

 In this way, all the departments of a company help in implementing the plans and activities of the marketing department

The company’s microenvironment is formed by the dedication and work coordination of the employees in the relevant department.

Question 15: How does the supplier influence marketing?

Answer: Various materials are required for the company’s smooth operation. Suppliers are individuals or organizations who provide all of the materials for the company.

Failure to deliver required materials on time disrupts operations and tarnishes the company’s reputation.

This is why marketing skills depend on the activities of suppliers. The company can determine the supplier as required.

Marketers can exert control over the environment by working with a variety of suppliers.

Question 16: How do the intermediaries influence marketing?

Answer: Intermediaries are individuals or organizations that deliver the company’s products to the final consumer or users.

For example, wholesalers, retailers, distributors, representatives, etc.

The smooth operation of intermediaries is important to the sale of goods. Intermediaries must be recruited and motivated in order to significantly expand the product market.

Product marketing is carried out by various types of intermediaries.

The company’s marketing skills depend on their cooperation. Therefore, in determining the middlemen, it is necessary to consider their efficiency, cost, quality of services provided, etc.

This is because their activities greatly influence the structure of the company’s work environment.

Question 17: How do the competitors influence marketing?

Answer: Competitors are business rivals who usually offer similar products or services.

That is to say, the marketing activities of an organization that are influenced by other similar products or service offers are called competitors.

Competing companies try to sell products to similar buyers. The company has to deal with different types of competitors.

The marketers must contend with competitors.

To survive in the competition, the marketer must identify the competitors, understand their strategies, and tailor his own strategy accordingly.

Because the organization’s success is dependent on using a marketing strategy that is consistent with the competitors.

The marketing activities of the company depend on the number, type, and activities of the competitors.

Question 18: How do People influence Marketing?

Answer: People are individuals who have a direct impact on the operations of the company.

For example, the financial population, media population, government population, civic activities population, local population, general population, and internal population.

Certain populations can help a company achieve its objectives faster. If the people do not assist, the company’s operations are adversely affected.

The attitude of the people and the buyers have to be taken into consideration while formulating the marketing plan of the company.

Companies can expect feedback from specific populations.

The company must establish and maintain positive relationships with these communities in order to create a favorable environment.

Question 19: How does the customer influence marketing?

Answer: A customer is a person or organization that buys goods or services from a store or business organization. So the marketing organization has to know the details about the customers.

There are different types of customers in the market and their buying behavior is different.

As a result, the marketer has to adapt the marketing activities according to the characteristics of the buyer’s market.

For example, consumers purchase goods or services for personal or family consumption, and business buyers purchase goods or services for reprocessing or use in the manufacturing process.

Reseller market buyers purchase goods or services for profit through resale, government market buyers purchase goods or services for the purpose of maintaining public service activities or transferring them to others.

On the other hand, buyers in the international market are foreign consumers, producers, resellers, or the government.

 Each of the mentioned markets has specific characteristics through which marketing activities are affected. These are marketing responsibilities that need to be carefully considered.

Question 20: How does the demographic environment influence marketing?

Answer: Demographic environment is the most important consideration for a marketer, as the marketer conducts all activities by involving the people.

Moreover, people are the main component of the market for goods or services. As one of the elements of the environment, population influences marketing.

Population size, density, age, religion, caste, occupation, etc. are the elements of this environment.

The elements of the demographic environment that influence the marketing of goods and services are:

  • Changes in the age structure of the population
  • Family lifestyle changes
  • Changes in the geographical location of the population.
  • Impact of education and profession
  • Increase diversity

Question 21: How does the economic environment influence marketing?

Answer: The economic environment is the sum of the external factors that affect the purchasing power of consumers and the type of expenditure on a country’s economy.

The elements of the economic environment have an impact on the purchasing power of the consumer and the type of expenditure.

So the marketer has to keep an eye on the consumption trend of consumers in his country and world market and the type of expenditure.

The two things that marketers need to keep an eye on are:

  • Changes in consumer income and
  • Changes in the type of consumer spending

Lately, there has been a change in the economic components. For example, economic factors have greatly changed people’s income, living expenses, interest rates, types of savings and loans, marketplace, and so on. Companies focus on these elements for economic forecasting.

Question 22: How does the natural environment influence marketing?

Answer: The natural environment is the environment that is formed by various natural elements such as rivers, canals, seas, mountains, climate, topography, etc.

Consumer awareness of the natural environment has greatly increased. Water pollution levels in many cities around the world have reached alarming proportions.

Countries around the world have become aware of global warming and environmentalists are also vocal about its dire consequences.

This is why marketers need to know about the three types of trends in the natural environment. These are:

  • Shortage of raw materials,
  • Levels of environmental pollution and
  • Government intervention

Question 23: How does the technological environment influence marketing?

Answer: The technological environment is the result of combining science and technical education, related research, advanced technology use, technology import opportunities, and so on.

The use of technology affects the marketing environment. The forces of innovation in new technologies, the creation of new products and markets and opportunities, etc. have an impact on the marketing environment.

However, the technological environment is changing rapidly. New technology creates new markets and opportunities.

Every new technology removes the old technology from the market. So the marketer should get used to the technical environment and monitor it closely.

Companies that can’t keep up with the technological environment see their products quickly become obsolete.

Question 24: How does the Political and Social environment influence marketing?

Answer: The political and social environment is made up of the activities of various government agencies and social interest groups that influence marketing activities.

The political environment includes factors such as government stability, political ideology, vision, policies, and programs, transparency, accountability, people’s political thinking, and the country’s law and order situation, among others.

The political situation has a significant impact on marketing activities. Marketers must be aware of the various laws and ordinances that govern their industry, and they must conduct their marketing activities in an ethical and socially responsible manner.

Question 25: What is the difference between Micro-environment and Macro environment?

Answer: The 3 most important differences between Micro-environment and Macro environment are as follows:

  1. The elements of the micro-environment are companies, suppliers, marketing intermediaries, buyers, competitors, and the population. On the other hand, the elements of the macro-environment are economic, natural, technological, political, and cultural.
  2. The elements of the micro-environment directly affect the marketing activities, while the elements of the macro environment indirectly affect the marketing activities.
  3. The scope of the micro-environment is very small, while the scope of the macro-environment is very wide.

I hope that by the end of this post, you have a good understanding of the “Marketing Environment” chapter. If you have any doubts or questions, don’t hesitate to contact us or leave a comment so that we can respond soon.

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3 thoughts on “25 Important Marketing Environment Questions and Answers [Notes with PDF]”

  1. Having read this, I thought it was very informative. I appreciate you spending some time and energy to put this information together. It was still worth it!

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