Consider Your Firm’s Marketing Environment When Building a Marketing Campaign

Many factors impact the marketing decisions of an organization. The main focus of a marketing strategy is to cater to the consumer’s desires, but other factors need to be considered. A marketing environment is a number of forces that can significantly affect the development of a marketing strategy, both internally and externally. 

The Three Categories of a Marketing Environment

The market environment is usually divided into three categories or types:

  • Internal Market Environment: all the factors within the business involved in creating the marketing strategy. For example, the number of resources that a firm can use to develop a marketing strategy can impact the scale of the final marketing campaign.
  • External Microenvironment: factors that are immediately surrounding (or directly associated with) small business and impact its operation. For example, the suppliers that are available to a business can change its marketing decisions because it is limited to the quality of products delivered by suppliers.  
  • External Macroenvironment: factors that have a substantial effect on an industry as a whole, and thus the marketing decisions of a firm within the industry. For example, the society in which a firm operates dictates much of what marketing is acceptable and what is not. 

The External Marketing Environment

Many factors impact the industry as a whole, and a business has little to no control over them. Especially for small businesses, the external marketing environment (both micro and macro) cannot be changed because a small business owner does not have any leverage or bargaining power. 

What Are the Forces That Make up the External Marketing Environment of a Firm?

There are five factors that are generally considered to be part of the external marketing environment of a business. They are economical, competitive, political, technological, societal (cultural).

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Why Is the External Marketing Environment Important?

Marketing teams should place great importance on their external marketing environment because it can either limit their marketing strategies or even create opportunities for them to expand and improve them. A great example of this is the tobacco industry and bans on advertising (by the government). The industry as a whole is affected by these bans and must choose marketing strategies accordingly. On the other hand, electric vehicle manufacturers know that their product is politically and socially accepted as superior, and thus they can create a market strategy that advertises their favorable traits (and even charge a higher price, Tesla Inc. is a typical example). 

The Internal Marketing Environment

The marketing strategy should be aligned with the business objectives, so the internal marketing environment is an important factor that needs to be considered. Business owners must ask themselves, what are the factors that are unique to a firm that changes its marketing decisions? For example, if their business has the vision of being eco-friendly, it makes sense that promotional activity will place emphasis on that part of the brand’s image.

The Factors That Make up the Internal Marketing Environment

The internal environment of a company is everything within it that can affect marketing decisions. Unlike the external environment, these can be shaped and molded according to the needs of a business. Thus, we will go into more details about them:


These are the values that a company believes in. It strives to have all employees and work culture adhere to these values, so the marketing strategy must also align to these values.


The ultimate vision and mission that a business has for itself. Where does the business plan to be in the next decade? How will its current marketing strategies need to be shaped in order to achieve its mission?


The assets and capabilities of a business can limit a marketing campaign or give it the freedom to expand it as needed. 

Human Resources

Arguably the most important factor of the internal environment is the employees and the skills they possess. Their creativity and innovation will determine the success or failure of any marketing strategy they put forward. 

Organizational Structure

Especially in larger organizations, the organizational hierarchy can have a great impact on the decisions made by a marketing team. Direction from a board of trustees, for example, can determine the way that a marketing strategy develops and the progress of a campaign. 


The culture that is already established within a corporation dictates the way that marketing teams communicate with each other and management and affects their freedom in creating a marketing campaign suitable for the needs of the corporation. 

Both internal and external marketing environments must be taken into consideration in order to create a successful marketing campaign. While the external environment cannot be controlled, it can present opportunities or limit a marketing plan. The internal environment can be changed according to the needs of a business and has a great impact on the marketing decisions and strategies employed to achieve the business’ goals. 

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