How marketing environmental analysis offers competitive advantage


Running a business is not easy. The are a lot of factors around us that influence a business which determines its success or its unfortunate failure. As a result, the business owner needs to be aware of the marketing environment, and understand these environmental factors and patterns and their effect on the business. This is where ‘Marketing Environment Analysis’ comes into action.

What is ‘Marketing Environment Analysis’?

It is an analytical methodology that helps to recognize and understand the internal and external environmental factors that directly and indirectly affect a company’s work. It enables the organization or the business to handle its threats and problems and derives appropriate solutions.

What are the Environmental Factors that Affect Marketing?

The environmental factors that affect marketing can be internal or external. The MICRO and MACRO environmental factors may, directly and indirectly, affect the company’s working.

● Microenvironmental factors:

These factors directly influence the working of a business and can be controlled by the organization. Its elements include:


The employees you hire are one of the most vital parts, the backbone of a company. If the employees are unsatisfied with their work, demotivated, or inefficient, it can directly affect the operations of the company which will, in turn, affect sales.


The suppliers and the resource from which the company gets raw material can affect the company. The suppliers may increase the cost of raw materials or may decrease the number of raw materials to be supplied which can directly affect the production and manufacturing of the products.


If you have watched any episode of ‘Shark Tank’, you would understand how important it is for a company to get funds and investments in order to hit higher targets. Many companies, especially start-ups, often have to convince investors to invest in their products. At the end of the day, you do get some one-on-one advice and support from your investors, but it does come with a price- you have to pay back to the investors with interest!


Social media and television can make or break your company. You may have seen many episodes of “Shark Tank” where the investors refused to invest, but upon airing the episode, the company attracts attention of many other investors who are ready to risk it all! Being consistent on social media, having good social connections, and presenting your company appropriately may help you gather a lot of traffic.


Customer is the King. Without consumers, a company would have no one to buy its goods and services. One of the main goals of any company is to satisfy the needs and wants of the customer and look forward to positive feedback. Consumer dissatisfaction may lead to negative feedback which in turn, may affect the sales of the company.


A company should know its position in the market and should make use of beneficial marketing strategies to stand out and generate traffic, especially in a homogenous market.

● Macro environmental factors:

These factors cannot be controlled and may indirectly affect the operations of a company. PESTLE is one of the significant analysis tools used to analyze macro-environmental factors. It stands for:

P- Political Factors

E- Economic Factors

S- Sociological and Demographic factors

T- Technological Factors

L- Legal factors

E- Ethical factors

Another common tool used is the SWOT (Strengths Weaknesses, Opportunities, Threats) analysis.


An awareness and understanding of ‘Marketing environmental analysis’ helps a business grow and gain maximum profit. It also helps a business draw attention and generate more traffic, giving it a competitive advantage as it stands out and flourishes.

How Valasys Media can help:

With the main objective of “Empowering Marketers with Powerful Insights”, Valasys Media is a prominent B2B Media Publisher focusing on B2B marketing and sales. Our team of experienced professionals, marketing and data analysts, marketers, etc., have worked with distinguished and eminent individuals and firms, assisting them to flourish and reach their full potential. For more information, feel free to get in touch with us.

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