Market EnvironmentThe *market environment* is a marketing term and refers to all forces outside of marketing that affect the ability of marketing management to establish and maintain successful relationships with customers. target customers. The market environment includes both the macroenvironment and the microenvironment.• The microenvironment refers to the forces that are close to the business and affect its ability to serve its customers. It includes the business itself, its suppliers, marketing intermediaries, customer markets, competitors and the public.o The business aspect of the microenvironment refers to the internal environment of the business. This includes all departments, such as management, finance, research and development, purchasing, operations and accounting. Each of these departments has an impact on marketing decisions. For example, research and development has a say in what features a product can achieve and accounting approves the financial side of marketing plans and budgets. o A company's suppliers are also an important aspect. of the microenvironment because the slightest delay in receiving supplies can lead to customer dissatisfaction. Marketers must monitor supply availability and other supplier trends to ensure that the product will be delivered to customers within the required time frame to maintain a strong customer relationship. o Marketing intermediaries refer to resellers, physical distribution companies, marketing services agencies, and financial intermediaries. These are the people who help the company promote, sell and distribute its products to the end buyers. Resellers are those who hold and sell the company's products. They tailor distribution to customers and include locations such as Wal-Mart, Target, and Best Buy. Physical distribution companies are locations such as warehouses that store and transport the company's product from its origin to its destination . Marketing services agencies are companies that offer services such as carrying out market research, advertising and consulting. Financial intermediaries are institutions such as banks, credit unions and credit companies. 'assurance.o Another aspect of the microenvironment concerns customers. There are different types of customer markets, including consumer markets, business markets, government markets, international markets, and reseller markets. The consumer market is made up of individuals who purchase goods and services. services for their personal or household use. Commercial markets include those who purchase goods and services for use in the production of their own products for sale. This is different from the reseller market which includes businesses that purchase goods to resell them as is for a profit. These are the same companies cited as market intermediaries.