Classification of Marketing Environment|Micro Environrncnt (Internal Components of environment)|Macro Environrncnt (External Components of environment)

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Classification of Marketing Environment|Micro Environrncnt (Internal Components of environment)|Macro Environrncnt (External Components of  environment)

Classification of Marketing Environment: Micro and Macro

The business’s success entirely depends on the marketing environment. If there are more opportunities in the environment then there is a higher probability of getting a good return. On the other hand, if the environment consists of more threats to the marketing then such a marketing environment is very detrimental to the firm. Therefore, in order to compete in the market, a marketer must be very careful while taking the decision. The accuracy of the decision largely depends on how well a manager will estimate the marketing environment. The proper analysis is only possible when he had good knowledge regarding the environment and its impact. In order to face such challenges, an organization has to understand and analyze these environmental forces. This will ensure to sustain and compete in the market, Based on the access and their nature the marketing environment can be classified into internal and external environments. Those environmental forces which directly affect the organization’s activities and policies are called the internal environment. Since these forces have to be analyzed deeply therefore they are also called microenvironments. Since such factors are almost in the control of an organization, they are also called the controllable environmental force. The factors which indirectly affect the organization activities and policies arc called the external environment Such forces being the general forces and organization have to go accordingly, therefore. they are also called macro environment Since such factors are not in the control of the marketer, they are also called the uncontrollable environmental forces.

Therefore, we can broadly classify the marketing environment into two groups microenvironment and macro environment. The microenvironment consists of forces that are very close to the company. They affect the company’s ability to serve its customers. The company, supplier, marketing intermediaries. customers, competition and public, etc. are constituents of the microenvironment of marketing. The macro-environment consists of the larger forces that affect the elements of the microenvironment. Demographic, economic natural. technological, political, and cultural forces are the major forces to be included in the macro-environment.

The marketing environment can be of two types:

I. Micro Environrncnt (Internal environment)
2 Macro Environment (External environment)

Micro Environment (Internal Component of Marketing Environment)

There are certain elements of the marketing environment, which need to study in-depth. These factors are very essential for understanding the marketing environment. Marketers combine suppliers, marketing intermediaries. customers, competitors, the public, and different departments to make up the company’s value and delivery system for the satisfaction of customers. Marketing managers try to build relationships with customers by satisfying them. However, marketing managers cannot do this alone. For this. they have to take the help of other factors of the microenvironment.

The elements of microenvironments have to be analyzed in detail since they directly affect the organizational policies and strategies. These are the internal factors, which are controllable by the organization.

Micro Environment (Internal Component of Marketing Environment)

Company internal environment

The environmental forces that are found inside the organization and the company have access and controls on them are called the company internal environment. These internal components of the company are the organizational objectives. organizational resources and the organizational structure.

Organizational objectives: 

Organizational objectives help to determine the action and activities, which are carried by the management. The objectives may be profit-oriented or nonprofit-oriented. Some of the organizations may have social welfare objectives. These objectives can be ‘determined and set by the organization according to their requirement. Thus, the organizational objectives are the controllable factors.

Organizational resources: 

Organizational resources are the capital resources, the human resources, the machines, and the technology, which are used by the organization to carry out their day-to-day operations. These resources are handled and manipulated according to the requirement and needs of the organization. Thus, the organizational resources are the controllable factors that exist inside the organization.

Organizational structure: 

The status, role, and relationship of the employees working in the organization reflect the organizational structure, Thus, the responsibility and authority of an employee are mentioned according to the level and position in the department. In order to get effective results, there should be good coordination between the other department and the marketing department. The organization structure may be simple, autocratic, or democratic. The organizational structure depends on the nature and the environment of the organization. Therefore, the role, status, and relationship of the employee with other departments also influence the marketing activity.

finance department provides funds to carry out marketing activities. The research and development department makes safe and attractive product designs. Purchasing department tries to get the raw materials and convert them into finished products. The accounting department keeps the record of revenues, costs, and helps the marketing managers to find out the results of doing marketing activities. In this way, marketing managers are required to remain in close contact with other functional managers for carrying out marketing activities smoothly.

Hence, it has to be remembered that while formulating marketing plans a marketing manager must consult top management departments like finance, research and development, purchasing, operations, and accounting departments. Marketing managers need to make marketing plans within the framework of the company’s mission, objectives, strategies, and policies made by top management.


Suppliers are the components of the microenvironment, which lie outside the organization. Although this factor is found outside an organization, however, an organization can have indirect control over them. The supplier plays a vital role in carrying marketing activities of an organization. Suppliers supply various inputs like raw materials. labor, energy, capital, and technology to the organization and enable them to produce and sell goods and services. Shortage of such inputs create hurdle in the activities of marketers, Marketers are also required to constantly monitor the price or the raw motetia18, Otherwise, it may make the fini•JEd products unnecessarily expensive, Successful marketers these days treat the suppliers as their partner, Therefore, [he marketer select those suppliers who are reliable and can maintain regular supply so that the production operation can be continued and timely delivery of the goods and services can be carried to the customers.

Marketing intermediaries

Goods or products have to be delivered to the ultimate customer. There are many personnel or institutions that act as the mediator to transform these goods from the production site to the consumption point. These mediators are called marketing intermediaries. Marketing intermediaries bring the goods from the place of production to the place of consumption, They remain in between manufacturers and consumers and bridge the gap between them. Marketing intermediaries include resellers, physical distribution firms, marketing services agencies, and financial intermediaries. Distributors, wholesalers, and retailers are resellers. They buy goods for the purpose of selling. In physical distribution, firms make a physical movement of goods. Warehousing and transportation companies come under physical distribution firms. Marketing services agencies help to promote and position the products in the market. Marketing service firms include marketing research firms, advertising, agencies, media firms, and marketing consulting firms. financial intermediaries include banks, insurance companies, finance companies, and other firms that provide financial support to the marketers. Marketers need to take the help of all these intermediaries to perform marketing activities.


The competitor is also one of the main microenvironment factors, which directly affects the organization. The success or failure of an organization largely depends on the competitors also. Competitors are those institutions or companies that serve similar products or services to the customer to fulfill similar needs in the market. Competitors are major variables in marketing. To be successful, a company must provide greater customer value and satisfaction than its competitors. Marketers must position their products in the mind of the consumers in a better way than competitors. It means marketers must do a number of things to outperform their competitors, In recent days due to globalization and liberalization company had to face the competition at both levels i.e. domestic and international levels. In such a situation, the company can apply the brand competition. generic competition and product competition. When the organization competes to satisfy the general needs of the customer, such competition is called the generic competition. For example the soft drink, cigarettes, computers, mobile, cosmetics, laptops, internet services, etc. all b-y to satisfy the needs of the customer. Therefore, these companies have generic types of competition. Brand competition is the competition where several brands compete with each other to fulfill the similar needs of the customers. Like Coke Vs Pepsi, TATA Vs TOYOTA, Samsung Galaxy Vs Apple iPhone, NTC Vs NCell services, etc.


The customer determines the actual market. The sales and revenues collection all entirely depends on the number of the customer who makes the purchase in the market. Therefore, the customers are the final person who determined the success or failure of an organization. The different characteristics of the customer like living standards, income, the standard of life educational background, attitudes and values, perceptions, choice, and preferences all have an impact on the organization’s products and services. Marketers supply their goods and services to the customers. Each and every marketing activity is directed towards the satisfaction of customer’s needs & wants. The firm delivers desired goods and services via supplier and marketing intermediates. The marketers should have well knowledge of the market & customers thereon. The marketers should have well information about customers ‘ purchasing power & buyer’s behavior to exist successfully in the market. There are different types of customer markets. They are consumer market, business market, reseller market, government market, and international market. The consumer market includes individuals and household goods who buy goods and services for personal consumption. The business market buys the goods and services to resell them for profit. The government market buys goods and services to produce public services. The international market buys goods for the fulfillment of international consumers, producers, and sellers. Marketers are required to maintain a close relationship with all of these customers.


A public is any group that has an interest. on an organization’s ability to achieve its objectives. Public lie outside the organization but they directly influence the organization and their Jf the public favor can be gained then the organizational objectives will be easy to achieve. In order to get support from these groups, the firms have to try to establish a good relationship with them. There are different types of publics like media publics, financial publics, government publics, citizen-action publics, and so on. The activities of marketers are influenced by various publics. So, marketers need to keep in touch with these publics while performing their marketing activities.

Media public: 

Media includes the -television, radio, newspaper, etc. They publish news, articles, story, and journals through these media. Such public groups can influence the organization’s social and economic status. Therefore, the organization should try to build good relationship with them.

Financial public: 

Those institutions like the banks, financial companies, insurance companies, etc. that are involved in the financial transition are termed as the financial public. They are also called the facilitating institutions as they directly or indirectly affect the market. Organizations should focus and give their-concern to make them favorable.

Local public: 

They consist of the local community organization like the village development committee, municipality’s cooperation. These local communities also affect the activities of the marketing. Therefore, a good relationship has to be established in order to get their support.

General public: 

Those groups of public, which consist of present and potential customers, are known as the general public. They purchase and use the company products and services. The choice, interest, and attitude of the general public actually determine the success or failure of the particular company. Thus an organization should emplfäsize to satisfy these groups of people.

Macro Environment (External Components of Marketing)

Marketing activities are not only affected by the internal environment but are also affected by the other powerful components of the environment. This environment is the external environment. They have a strong effect on the marketing activities, organization’s decision-making, and strategies. The external and uncontrollable factors that exist outside of a company’s control that significantly affect their performance and ability to compete in the marketplace is the macro environment. Successful marketing depends largely on a company’s ability to manage its marketing programs within its environment. To do this, a firm’s marketing executives must determine what makes up the firm’s environment and then monitor it in a systematic and ongoing fashion. The factors of the external environment keep on changing. So, marketers must keep various environmental elements in their minds while making marketing programs and implementing them. Macro environment elements mainly consist of political, economic, socio-cultural, technological, demographic, and natural forces. These major factors of the external environment are shown in the figure.

Macro Environment (External Components of Marketing)

Political legal environment

The political-legal system is a broad term, which governs the nation. It formulates all systems for a nation. The political environment of a country has an important impact on marketing activities. Politicians enact laws and political systems that shape the economic activities in a country. While developing the political system politicians are also influenced by the situation of the country.

Political factors include tax policies, fiscal policy, trade tariffs, etc, that a government may levy around the fiscal year and it may affect the business environment to a great extent. A well-conceived regulation can encourage competition, ensure fair market, fair trade, environment protection, product supply, truth in the advertisement, consumer privacy packaging, etc. The political environment includes laws, government policies, pressure groups, political climate, and government permanency. There are some elements of the political-legal environment that influence the activities of marketing firms. They are as follows.


Law determines the job, duties & authorities of every sector of the country. A legal provision regarding product standards, movement of goods, import and export restriction, patent and copyright, foreign regulation affects marketing activities. Government promulgates a number of laws and acts to regulate the activities of business organizations. Most of the laws and acts are conducted for the operation of business activities. But some of the acts may create unnecessary hurdles. Import and export Act, company Act, income tax Act, value-added tax Act, foreign investment Act, technology transfer Act, custom Act, tourism Act, design and copyright Acts, private firm registration Acts, etc. are some Acts that influence the activities of business organizations. There are certain laws that affect the business environment in a country while there are certain policies that companies maintain for themselves, for example, consumer laws, safety standards, labor laws, etc, Legal factors include discrimination law, consumer law, antitrust law, employment law. and health and safety law. These factors can affect how a company operates, its COStN, and the demand for its products. Therefore, a marketer must have proper knowledge of such Acts and their impacts on business. It is because marketers cannot go against government Acts rather they need to strictly follow such Acts in course of doing their activities.

Government policies: 

Government policies define the methods or plans of governing the nation. The government makes different policies like monetary policy, fiscal policy, industrial policy, and other trade-related policies that affect marketing activities. Business organizations need stable government policies for their growth and development. Unstable, government policies interrupt the development of a business organization. Government policy is the principled guide to action taken by the administrative, executive branches of the country with regard to a class of issues in a manner consistent with law and institutional customs. Further, it includes fiscal, monetary, and industrial, and trade-related issues which affect the marketing activities. The government provides policy statements in the form of national plan documents, annual budgets, and government decisions. In Nepal, the government changes frequently and new policies are enacted after the change in government. This causes various problems for the business organization.

Pressure groups: 

Marketing activities are also influenced. by many pressure groups (consumerists, environmentalists, feminists, etc.). These pressure groups want to optimize their own interests. Pressure groups also pressurize the government for the enactment of strict Jaws to control the activities of marketing firms. Environmentalists call for marketers to undertake green marketing. They say that marketers do not have. any right to harm the environment in course of carrying out marketing They pressurize the marketing firms to perform their activities in an environment-friendly manner. These groups use varied methods to achieve their aims including lobbying, media campaigns, publicity stunts, polls, research, and policy briefings. These groups put pressure on the organization to consider their interest in the performance of marketing activities. They also pressurize the government to enact laws to protect their interest. Consumerists blame the marketers for the unequal distribution of goods in different markets. According to them, marketers have oversupplied goods in poor countries. Feminists blame the marketers for the excessive use of female models in advertising campaigns. So, the marketers are required to address the pressure .while carrying out their activities.

Political climate: 

The political environment is more concerned with the political attitudes of government, an opposition party, the business community, people, etc. If the attitudes are negative, there will be a creation of uncertainty. The positive attitude of the Congress government towards the capital market has helped to increase the NEPSE Index by more than 1000 in 2071. The recent agreement between the government of Nepal and GMR Company India for Upper Karnali Hydro Electricity is the result of a positive political climate. Thus, a favorable political climate is a must for the development of the market.

Government permanency: 

Government permanency gives certainty o government policies. If there is no permanency, the government policies will change frequently. Due to the changing policies and strategies of government, no plan will be complete or successful. In such a condition, the market will adversely be affected by the frequently changing government. In other words, it will cause disturbances in the business performances.

Economic Environment

Economic environment refers to economic forces that are available in the surrounding market or affect marketing. This environment influences resource allocation cost, profit & consumer spending significantly. For example, a rise in the inflation rate of any economy would affect the way companies price their products and services. It would affect the purchasing power of a consumer and change demand/supply models for that economy. The economic environment consists of some significant focus that affects the marketing activities. A marketing program is affected by such economic factors as the current and anticipated stage of the business cycle, inflation, and interest rates.

Economic system: 

The success or failure of marketing highly depends on the marketing system. Generally, there are three types of economic system namely: free market, centrally planned & mixed economy. In a free-market economy, the private sector exercises or participates in the market freely. In a centrally planned economy, freedom for the private sector is rare. Public enterprises play a dominant role in the centrally planned economy. In a mixed economy, both public and private sectors have equal opportunities.

Stages of the business cycle: 

The business cycle goes through four stages namely prosperity, recession, depression, and recovery. Marketing executives need to know the various. stages of the business cycle. It is because marketers need to change their marketing programs knowing the impact of different stages of the business cycle. Prosperity period of economic growth. During this stage, organizations tend to expand their marketing programs. They add new products and enter new markets. A recession is the period of retrenchment for consumers and businesses. People become discouraged, scared, and angry. Naturally, these feelings affect their buying behavior. So, business firms face serious marketing challenges, and some may incur an economic loss.

During the depression, many people become unemployed and their income level declines sharply. Buying capacity of the consumers becomes very weak. They do not buy luxury and durable items. So, marketers limit their activities in producing some basic items. Recovery is the period when the economy is moving from depression to prosperity. The marketers’ challenge is to determine how quickly prosperity will return and to what level. During this stage, the level of unemployment declines, and disposable income increases. So, business companies expand their marketing efforts to improve sales and profits.

Income distribution: 

The income distribution of people highly influences the market environment. On the basis of income distribution per capita income in different countries of the world is different. In developed countries, per capita income is high; in under-developed & developing countries, it is low. People having per capita income is highly involved in marketing activity.

purchasing power: 

The purchasing power of buyers directly affects marketing activities. It is the result of income, economic system, inflation, and level of employment. Purchasing power is an uncontrollable environmental factor.


A general rise in the prices of goods and services is called inflation. When the price rise at a faster rate than personal incomes and consumer-buying power declines. Inflation rates affect government policies, consumer psychology, and also marketing activities. During inflation, money loses its worth. Goods become unnecessarily expensive. So, consumers do not buy durable items and have to reduce their consumption level.

Level of employment: 

Employment is the major source of income in any country. Higher the level of employment, higher the level of people’s income. An increase in income will increase purchasing power. Thus, as a result, they increase their buying & consuming activities. It will have a positive effect on a consumption pattern.

Interest rates: 

Interest rates is another external economic factor that influences marketing programs. When interest rates are high, people postpone their buying of expensive and durable items like houses, motor vehicles, jewelers, etc. Rather they like to save money for the purpose of earning interest.

Availability of credit: 

Availability of credit increases buying capacity of consumers. In Nepal, banks and finance companies have introduced hire purchase schemes. They offer expensive and durable items or goods on an installment basis. This has expanded the market for consumer durable items like motorcycles, motor cars, television, refrigerator, etc.

Socio and cultural environment

Human is the social animal and likes to live in the society. They perform various activities while they are in society. These social activities that people perform in society are called culture. In other words socio-culture, the environment is the aggregate of sæial and cultural forces.

The cultural environment indicates and affects how and why people live and behave. no cultural environment affects customer-buying behavior. Some examples are the language people speak, the type of education they have, their religious beliefs, type of food they eat, the style of clothing and housing they have, how they view, work, marriage and lives in the family.

There are many sub-cultural groups in society that exhibit different buying behavior. The way of dressing, choice of color. food, house, etc. of people are different due to differences in their culture. People following different cultures may hold different attitudes. values and benefits. This also affects the activities of marketers. Culture is very much dynamic. In past, most of the Nepalese people liked to live in joint families. But now they prefer small farmly. The people living in rural areas are found following traditional culture. But city dwellers have blindly adopted Western culture. So, culture is greatly influenced by another culture. These cultural shifts bring both opportunities and challenges to marketers. In this way, the decisions of marketing managers are influenced by the cultural environment.

The socio-culture environment is made of institutions and other forces that affect society’s basic values. perception. preference and behavior. These socio-cultural forces are changing in nature. Various factors of socio-culture environment are customs, tradition, language, religion, attitude, beliefs, value housing, work of art, etc. All these factors highly influence the marketing activities due to differences in consumption behavior, likes and dislikes of the customers, and their choice. The marketer must meet these changing forces. The components of a socio-cultural environment are:


The lifestyle of people changes with the change in society. The lifestyle of people is expressed through the way they act, behave & speak. The change in the ways of living also affects marketing. The luxurious lifestyle or fashionable lifestyle would increase demand and wants in the market.

Family & social classes: 

A family is a very important part of society. It is the predominant component of the socio-cultural environment. The needs want, and demand of the family changes with time and affects marketing activities. Society is classified into high, middle & low class. People behave according to their class and have a greater impact on marketing activities.


The attitude of the people differs from person to person. It is the outcome of education, belief &values. An attitude of the people affects the behavior of a person, activities, and belief. Attitude thus has a greater impact on marketing.


People’s activities are largely directed by their religious beliefs. People’s needs want and interest varies from religion to religion. Religion has a greater impact on marketing activities. So, to succeed in the market a marketer should well address the religious faith of people. For example in the Hindu religion, customers may purchase the products on a special occasion like festivals whereas a Christian will purchase high during Christmas.


Language is a medium to convey messages from one person to another. Language differs from country to country. Language thus has a great impact on marketing activities & business organizations directly. Similarly, managing economic and business activities requires talented manpower. They must be rational in decision marketing. Well-educated people perform marketing activities rationally, whereas illiterate people are less rational towards marketing activities.

Technological environment

Technology is another important element of the macro environment. Technology is very powerful since it can create or destroy the entire business industry, Emergence of new technology can be both beneficial and dangerous for an organization. If an organization cannot adapt itself according to the changing technology, it makes them weak to compete. If it adopts the changing technology then, it can remain strong in the market against its competitors.

Apart from these, technology has a tremendous impact on our lifestyles, our consumption patterns, and our economic well-being. Technology has made it possible to develop different types of goods like airplanes, plastics, television, computers vehicles, etc. Technology influences marketing development in the field of communication. Technology has given momentum to business transactions. The Internet has a profound effect on marketing. Technology has mixed blessings in many ways. New technology may improve our living standards in one area while it may create environmental and social problems in other areas. An automobile is a convenient form of personal transportation, but it also creates traffic jams and air pollution. In turn, technology is expected to solve some problems. It is criticized for causing many problems. The technological environment can be understood in the following ways:

Levels of technology: 

The types and levels may be low-level technology, advanced level technology, sophisticated technology, labor-based technology, capital-based technology, and so on. In labor-based technology, most of the works are carried out by the labor whereas in the case of capital-based technology more capital is utilized to get the desired output. In machine-based technology, machine technology is used heavily. Levels of technology differ according to the nature and demand of the market. Marketers depend on technology for performing marketing activities. Nevertheless, they need to develop different types of technologies for different market locations. Villagers do not demand for high-tech goods. So, marketers can use simple technology to produce and launch goods in the rural market. But in contrast, city dwellers prefer to use modern goods produced from advanced technology. People living in the city areas have seen and used imported products, So, marketers need to use advanced technology in the city areas.

Pace of technology: 

As it has already been mentioned that if an organization cannot identify the change of technology then it can eliminate them from the competition in the market. Due to more inventions and discoveries in science and technology new devices and technology are introduced in the market. The change of technology is so fast that sometimes a technology, which we are using, may be outdated tomorrow. As technology changes rapidly, a marketer should carefully watch the pace of technology change to compete with the rivals. A firm cannot control the technology trends but it has to adapt to the change. This will help to reap opportunities by introducing new and innovative technologies.

Transfer of technology: 

Technology transfer implies technology imported from technologically advanced countries. The technology can be transferred by various means. It can be transferred from company to company or nation to nation. The various methods of transferring the technology are globalization, project, trade, technical assistance, training, and publication, etc.

  • Globalization: Global companies are the key sources of technology transfer. The modality can be franchising, technical collaboration, and subsidiary establishment.
  • Projects: Projects subject to global bidding, which serves as a source of technology transfer.
  • Trade: This consists of the sale of equipment or machinery items by the manufacturer.
  • Technical assistance: Donors under technical assistance provide international consultants who bring new technology with them
  • Training and publication: They provide opportunities to learn about new technology. Through different forms of technology, information can be given and are transferred.

Technological research and development: 

The technology once developed becomes obsolete over time. The taste and preference of the consumers change with the passage of time. They do not like to use the same product always. Therefore, consumers always demand new types of products. Manufacturing and delivering new products, using old technology is not possible. So, marketers should conduct research works to find out new and innovative technology. To achieve this, they have to invest a huge sum of money. Large-scale •companies undertake research works and launch new types of products in the market for the satisfaction of consumers. But, marketers must evaluate the cost of using new technology and the benefits to be received by the use of such technology.

Demographic environment

Demography is the statistical study of the human population. It is the study of the human population in terms of population size, population density, location, age, sex, occupation, etc. Marketing is highly influenced by the demographical factors of a certain location. Demography involves people and these people constitute the market, So, demography is of social interest to the marketers. The population of the world is growing rapidly. To fulfill the rising needs and wants of customers is a big challenge to the marketer. A marketer should well-evaluate the demographic factors to get success in the market. There are some demographic variables that have a direct impact on marketing.

Size or population: 

People make upmarket for the products. The market segments having a large size of a population are attractive for marketers. International marketing has been attracted towards the markets of India and China due to the large size of the population. Some developed countries especially European countries are worried about the negative growth rate of the population. Many primary schools in Norway have been closed due to a lack of children, In such a situation, a negative growth rate in the population erodes marketing opportunities for child-related products like toys, diapers, etc.

Growth of population: 

The growth of population helps to expand the size of market for a product or goods. But, growth in population in poor countries contracts the market. The existing population needs to share available resources with the increased population. This makes people further poor and reduces their buying capacity. So, growth in population expands the size of market in capital rich countries than in poorer countries,


Migration is a process in which people go from one place to another for this settlement. When people migrate they lake their consumption behavior With them. They want to get the same products that they used to consume before migration. This creates marketing opportunities for a certain type of product. After many people migrated from Hills to Terai, the demand for colorful dresses has been increased considerably in the market of Terai.


Urbanization brings a change in the lifestyle of people. Even the people coming from village to town start buying modern goods to adjust themselves in urban life-style, People living in urban areas are fashion conscious. So, they buy incredible varieties of goods. This leads to an increase in the demand for products and creates opportunities for marketers.


Consumers of different age groups demand different types of products. The demands for products made by young aged people and old aged people do not match. Likewise, youngster and old aged people exhibit different types of buying behavior, Youngsters make emotional buying whereas old aged people make rational buying.

Natural environment

The natural environment involves the natural resources that are used by the marketers as inputs. Natural environment of marketing consists of all geographical and physical forces such as natural resources, location, topography and climate. Marketer extracts resources from nature. But these days marketers are found using natural resources unwisely. Scientists are giving warning that if the current trend of using such resources continued in the next few decades then the resources will be exhausted completely, resulting in the environmental damages. So, marketers are required to do marketing activities considering various aspects of natural environment. The natural environment is very important in a country like Nepal where both opportunities and threats resulting from the country’s topography, climate, and location. Following are the components of the natural environment:

Natural Resources:  

Marketing firms perform production activities getting raw materials from nature. They extract some resources like oil, gas, mineral, and forest from nature. Some countries are richly endowed whereas others are poor in terms of natural resources. Nepal comes after Brazil in terms of potentiality for generating hydro-electricity. Water can also be used in agriculture and industrial activities. Despite. these potentialities, we have fallen backward in generating hydroelectricity and doing farming, Farmers are not enjoying irrigation facility and people are facing the problem of load-shedding. So, only availability of resources does not matter. Marketers must use them wisely to get optimum benefit. Natural resources such as raw material, energy, and water are highly essential for production. The global development history shows that many countries achieved remarkable economic development in a short period of time on the basis of valuable natural resources, such as oil, minerals, forests, etc.


Location is the next factor that influences marketing activities. If a market is located very near to the sea, transportation cost is considerably reduced. Marketing must operate their activities very near to the large market. Nepalese marketing can take advantage due to the location of Nepal between two large developing countries i.e.

India and China.


The topographical position of Nepal is very difficult. It creates problems in the transportation of raw materials and finished products. Topography plays an important role in marketing. particularly in the transportation of raw material and finished products. Distribution of products becomes easier and cheaper in plains than in hills and mountains. Transportation becomes a bit easier in the plain region than in the mountainous region. There are sky-high mountains in the northern part of the country. There is no good facility. This causes problems in the distribution of goods. But difficult topography proves to be beneficial from the viewpoint of developing tourism industries. A large number of tourists visit Nepal each year being attracted by our snowy peaks. This has given rise to our tourism marketing.


The mildness of climate is essential to marketers for doing their activities. The mild and temperate climate is more suitable for marketing than the hot or very cold climate. Marketers need to pack the goods properly to supply them to places having a hot climate. Very cold climate causes the problem in transportation. Hot climate requires special attention in packaging In Nepal, different types of climate can be found in different places. This has given an opportunity to us to produce different types of fruits, vegetables, and flowers that are suited to the different climate.

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