·        The market environment is the environment immediately outside the business

·        Business/management has NO CONTROL over this environment but it can influence it

We will further discuss the components of the market environment:

COMPONENTS OF THE MARKET ENVIRONMENT

a)     Suppliers

·        Provide the raw materials, transport and other services to the business. 

·        Need to provide business with the right quantity, quality and price.

·        Need to be reliable and offer discounts, bulk discounts and loyalty benefits

b)     Customers

·        These are people or other businesses who buy the products or services of business to satisfy their needs.

·        Businesses need to be aware of consumer behaviour patterns and preference trends

c)      Competitors

·        Other businesses that sell the same or similar products or services.

·        A business should be aware of competition and how its competitors operate.

·        They have to offer better service, prices or quality product to that of their competition, to attract consumers.

·        Can be competitive by better marketing and branding strategies.

d)     Intermediaries

·        Bridge the gap between the manufacturer and the consumer.

·        They link the micro environment to the market environment.

·        They bring the products and services within reach of the consumer, e.g. vegetable market

e)     Regulators

·        Uses laws to control business practice.

·        Laws ensure free and fair trade

f)      Civil society

·        Include community-based organisations, non-governmental organisations and trade unions.

·        These influence the way business conducts itself.

(Read pages 28-32 in the notes attached on the market environment)