Organizational Environment

This environment of marketing is located within the organization. The organizational environmental factors are not easily controllable by the marketing manager. However, these forces can be the marketing manager in the long-run. The organizational environment consists of organization’s objectives, resources and structure.

Organizational Objectives

The organization’s objectives provide a frame work within which the marketing activities are conducted. For example, an organization with profit maximization objective does not allow freedom to the marketing manager to introduce an after sales program at the cost of profitability.

Resources

Resources available to the organization set a limit as how far the marketing program can go. Financial resource constrains the marketing budget, particularly for promotion. Human resources in term of skilled personnel often limit production and marketing of new product. Production capacity and raw material reserve affect the expansion of output.

Organization structure

The organization structure defines the status and determines the role and relationships of each individual working in the organization. The marketing department has to function within the set organization structure. The marketing activity is influenced by the current role and responsibility structure. The role assigned to other department such as finance, research and design, personnel, purchasing and production also affects marketing activity.

The marketing manager needs to persuade the top management to change the organizational goals and policy, increase the resources, and modify the organization structure according to the need of the market.