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Marketing Environment: Macro and Micro Marketing Environment

macro environment consists of

Therefore, although both countries had the same mean income, opportunities to market products to the middle class would be greater in the United States. Two countries with the same mean (per capita) income levels may have dramatically different distributions of income. The majority of persons in the United States are considered middle income, with only a relatively small number of persons having exceptionally high or low incomes.

macro environment consists of

Therefore, strategic innovation and tinkering with the ‘strategic plan’ have to be a cornerstone strategy for an organization to survive the turbulent business climate. The social-cultural aspect of the macro-environment is made up of the lifestyle, values, culture, prejudice and beliefs of the people. The technological environment constitutes innovation, research and development in technology, technological alternatives, innovation inducements, also technological barriers to smooth operation.

Biodiversity and Natural Systems

In the macro environment we’re currently living in, couples are far more likely to raise a pet than a child, and globally, consumers are far more likely to be old than young. This has caused a boom in high-priced pet products and a decline in investment into products that relate to early childhood. This is an important macro-environmental factor to consider when deciding on a new demographic to focus your marketing on.

What is micro environment components?

The six components of the microenvironment are: businesses, suppliers, marketing intermediaries, competitors, the general public and customers.

Workers are less accepting of undesirable working conditions than were workers a generation ago. Better working conditions, stable employment, and opportunities for training and development are a few of the demands businesses confront more frequently as the result of a more educated workforce. Every business organization is a part of the business environment, within which it operates.

Macro Environment

When employees have a positive attitude toward their organisation, it spreads to their external audiences. Whether or not a business has a favorable financial system, it must be aware of how financial institutions affect marketing. For this reason, the organization must build good partnerships with major financial institutions. Finally, buyers from other nations, such as consumers, producers, resellers, and governments, make up international markets. In contrast to reseller markets, which acquire products and services to resale for a profit. Micro Environment consists of all those factors that influences marketing activities directly.

  • But any loan funds involve paying a loan with interest, which is not an option for everyone.
  • It’s also important to keep abreast of new legislation in the works or tabled for passage.
  • It means making people (both the employees as well as the general public) aware about the causes and consequences of environmental pollution.
  • If you’re marketing a product that only appeals to traditional nuclear families, or if your marketing strategy only features traditional families, you may be leaving out a large portion of the consumer base.
  • It includes concepts such as demography, economy, natural forces, technology, politics, and culture.

A company can create marketing strategy for both these publics and its consumer markets. Assume the corporation desires a specific response from a specific public, such as goodwill, favorable word of mouth, or monetary or time donations. The company would have to create a public offer that is appealing enough to elicit the required response. The responsibility of marketing management is to develop attractive offers for target markets. However, marketing managers cannot limit their attention to the needs of the target market.

Components of a Company’s Macro Environment

A very brief listing of significant laws that affect business would include legislation in the areas of consumerism, employee relations, the environment, and competitive practices. The political-legal dimension of the general environment macro environment consists of also affects business activity. The philosophy of the political parties in power influences business practices. The legal environment serves to define what organizations can and cannot do at a particular point in time.

Economic environment of business has reference to the broad characteristics of the economic system in which the business firm operates. The present day economic environment of business is a mixture of national and international environments. The existing economic environment of business is highly complex and it is not easy to comprehend it. It is the reason the firms operating in the same economic environment often take different decisions. The economic environment of the country includes economic system, macroeconomic parameters, and stages of business cycle, financial system and economic policies of the government. Marketing environment refers to external factors and forces that effect the company’s ability to develop and maintain successful transactions and relationships with companies target customers.

Technological Environment

Demography is the study of human populations in terms of size, destiny, location, age, gender, race, occupation, and other statistics. This is very important because these factors directly influence consumer decision-making. So marketers should be aware of several trends in the natural environment. The macro-environment influences the decision, profitability, and functioning of companies. And, they do not have absolute control to direct the impact to their advantage. Cultures often develop a group mentality, which passes along core values and general beliefs.

No firm is immune to economic forces although some are less vulnerable than others. Anticipation of future economic conditions will enable the firm to devise appropriate strategies. The low income may be the reason for very low demand for a product in a country. The sale of a product for which the demand is income elastic naturally increases with an increase in income. But the firm is unable to increase the purchasing power of the people to generate a higher demand for its product. One of the biggest and most dynamic sources of dangers and opportunity for the organization is technology.

Targeting Strategies in Marketing – How to do…

Business now has to calculate the social net profitability (social benefit-social cost) of its ventures. From the above discussion on environmental pollution, one thing can clearly be identified, that it is business that mainly contributes to all sorts of pollution i.e., air, water, land and noise. In rural areas, the occupational groups consist of farmers, artisans and traditional craft workers. There is little scope of mobility among the social classes in such a society. The urban areas are comprises of doctors, engineers, lawyers, software professionals, industrial workers, government servants as well as business people. With the introduction of economic reforms and the policy of liberalisation in our country, our exports have increased considerably and many foreign companies started to trade with our country.

What are the 6 variables of macro environment?

DEPEST refers to the six broad factors affecting the macroeconomy – Demographic, Ecological, Political, Economic, Socio-cultural, and Technological.

What are the 7 macro environment?

The macro environment comprises a range of external factors—demographic, physical, natural, economic, technological, political, legal, and socio-cultural conditions.

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