What is the internal environment?

Published on August 31, 2023   9 min
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Hello and welcome to this session on the Internal Environment. My name is Annmarie Hanlon hand I teach marketing at Cranfield University's School of Management in the UK. Some of these themes are taken from my book "Digital Marketing". Let's get started.
In this session we consider the components of the internal environment and then we delve into the Boston Box as a portfolio model to assess market share. Finally, the Boston Box is applied to an example to show the portfolio model in action.
The internal marketing environment is part of the wider marketing environment. Other elements include the external environment and the performance environment.
The internal marketing environment considers the elements controlled by the organisation. These are typically the goals or objectives. This is what the organisation wishes to achieve. The market share, that's the relative share of the market compared to the main competitors. The strategy, that's the overall focus of the organisation. The growth plans for the organisation. The quality of the goods and services compared to the main competitors and the positioning which is the way the products are differentiated from competitors. For example, Amazon's movie channel offers a total package as part of the Amazon Prime offer whereas Netflix is considered to provide higher quality movies. These are similar offers with different positioning. The resources available which includes finances and people and the extended marketing mix. That's the products, pricing, place to access the products, the promotional methods used, the people involved, the processes and the physical evidence. Using this framework, an organisation first analyses its own situation and then analyses its main competitors. This enables a comparative analysis to be developed, identifying the relative strengths and weaknesses of an organisation. This demonstrates where more work is required or where advantages can be highlighted.