Understanding the digital marketing environment in which your brand will live is very important, but what exactly does it consist of? According to authors Dave Chaffey and Fiona Ellis-Chadwick, “The (digital) marketing environment involves two major elements: 1) micro-environment and 2) macro-environment.”
MICROENVIRONMENT
The micro-environment is the layer closest to the brand. This includes the key “players” and all of the ways in which they interact that could ultimately have an effect on the marketplace.
 |  |  |  |
| Suppliers | Intermediaries | Competitors | Customers |
| Your suppliers play a key role in your immediate environment. Issues with them have a direct and immediate impact. Make sure that you establish quality relationships with reliable suppliers and plan for supply chain issues that may arise. | Intermediaries can serve as connectors between manufacturers and brands. Much like with suppliers, you want to work with reliable intermediaries that have good reputations and whose connections you can leverage. | It is likely that in your micro-environment your brand is not alone. Creating a perceptual map that includes your competitors can give you an idea of where you stand in relation to them. You should be well-versed in what your competition is doing. | You wouldn’t have a business or a marketplace without customers. Your customer may be a business, an intermediary, or even the end consumer. No matter what or who you’re selling to, understand your customer by building an accurate persona. |
MACROENVIRONMENT
All of the peripheral elements outside of the micro-environment are what make up the macro-environment. Though these may seem like distant elements, fluctuations may cause impacts on the micro-environment. In order to assess what elements your brand should be paying attention to, do a PESTEL analysis. Review possible concerns within these 6 buckets:
| P | E | S | T | E | L |
| Political | Economic | Social | Technological | Environmental | Legal |
| Consider governmental policies and regulations, political threats, etc. | Factors such as inflation, changes in consumer incomes and globalization | Demographic factors and purchase patterns need to be checked for new trends | Updates in production tech, distribution, or even reach | Climate change and pollution are threats to the planet and should be considered | Check to ensure there aren’t any discrimination or safety concerns |
Understanding and considering all of the elements that make up the micro and macro environments can help your brand be prepared for any scenario.