Market EnvironmentThe *market environment* is a marketing term and refers to all forces external to marketing that influence marketing management's ability to build and maintain successful relationships with target customers. The market environment consists of both the macroenvironment and the microenvironment.• The microenvironment refers to the forces that are close to the company and influence its ability to serve its customers. It includes the company 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 company. 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 contributes to the features a product can offer, 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 even the slightest delay in receiving supplies may lead to customer dissatisfaction. Marketing managers must monitor supply availability and other trends in supplier relationships to ensure that the product is delivered to customers on time 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 product. They correspond to distribution to customers and include places like Wal-Mart, Target, and Best Buy. Physical distribution companies are places like warehouses that store and transport the company's product from its origin to its destination. Service agencies marketing are companies that offer services such as market research, advertising and consultancy. Financial intermediaries are institutions such as banks, credit companies and insurance companies.o Another aspect of the microenvironment is customers. There are several types of customer markets, including consumer markets, business markets, government markets, international markets, and retailer markets. The consumer market consists of individuals who purchase goods and services for personal or household use. Business markets include those who purchase goods and services for use in producing their own products for sale. This is different from the reseller market which includes companies that purchase goods to resell as is for profit. These are the same companies cited as market intermediaries.