Relationship of micro market and macro environmental forces

Micro and Macro Environment Factors | Oxford College of Marketing Blog

relationship of micro market and macro environmental forces

An assortment of environmental forces affects a company's marketing Macro and micro environment comprise the structure of the marketing environment. successful transactions & relationships with the company's target customers.”. particularly identity formation in relation to mobile phone consumption in the context and macro-environmental factors on consumer behaviour and marketing. Home» Marketing Environment – Micro and Macro Environments profitable relationships with the target customers is affected by the factors.

The final aspect of the micro environment is publics, which is any group that has an interest in or effect on the organization's ability to meet its goals. For example, financial publics can hinder a company's ability to obtain funds affecting the level of credit a company has.

Media public include newspapers and magazines that can publish articles of interest regarding the company and editorials that may influence customers' opinions. Government public can affect the company by passing legislation and laws that put restrictions on the company's actions.

Citizen-action publics include environmental groups and minority groups and can question the actions of a company and put them in the public spotlight. Local publics are neighborhood and community organizations and will also question a company's effect on the local area and the level of responsibility of their actions.

The general public can affect the company as any change in their attitude, whether positive or negative, can cause sales to go up or down because the general public is often the company's customer base.

relationship of micro market and macro environmental forces

And finally those who are employed within the company and deal with the organization and construction of the company's product.

Macro-environment[ edit ] The macro-environment refers to all forces that are part of the larger society and affect the micro-environment. It includes concepts such as demography, economy, natural forces, technology, politics, and culture.

Marketing Environment | Micro and Macro Environment

The purpose of analyzing the macro marketing environment is to understand the environment better and to adapt to the social environment and change through the marketing effort of the enterprise to achieve the goal of the enterprise marketing. Demography refers to studying human populations in terms of size, density, location, age, gender, race, and occupation.

An example of demography is classifying groups of people according to the year they were born. These classifications can be referred to as baby boomerswho are born between andgeneration Xwho are born between andand generation Ywho are born between and Each classification has different characteristics and causes they find important.

This can be beneficial to a marketer as they can decide who their product would benefit most and tailor their marketing plan to attract that segment. Demography covers many aspects that are important to marketers including family dynamics, geographic shifts, workforce changes, and levels of diversity in any given area. Another aspect of the macro-environment is the economic environment. This refers to the purchasing power of potential customers and the ways in which people spend their money.

Within this area are two different economies, subsistence and industrialized.

The Impact Of Micro and Macro Environment Factors on Marketing

Subsistence economies are based more in agriculture and consume their own industrial output. Industrial economies have markets that are diverse and carry many different types of goods. Each is important to the marketer because each has a highly different spending pattern as well as different distribution of wealth. The natural environment is another important factor of the macro-environment. This includes the natural resources that a company uses as inputs that affects their marketing activities.

The concern in this area is the increased pollution, shortages of raw materials and increased governmental intervention. As raw materials become increasingly scarcer, the ability to create a company's product gets much harder.

Also, pollution can go as far as negatively affecting a company's reputation if they are known for damaging the environment. The last concern, government intervention can make it increasingly harder for a company to fulfill their goals as requirements get more stringent.

The technological environment is perhaps one of the fastest changing factors in the macro-environment. This includes all developments from antibiotics and surgery to nuclear missiles and chemical weapons to automobiles and credit cards. As these markets develop it can create new markets and new uses for products. It also requires a company to stay ahead of others and update their own technology as it becomes outdated.

They must stay informed of trends so they can be part of the next big thing, rather than becoming outdated and suffering the consequences financially. In order to understand the different spending patterns, marketers need to also take into consideration about the development of digital technology and its effect on market growth and employment.

It is key for a marketer, especially in a digitally-dominated market, to anticipate demand in order to capitalise on potential market growth. Technology has developed to the extent where purchase patterns can be analysed in order to forecast future demand [4]. The political environment includes all lawsgovernment agenciesand groups that influence or limit other organizations and individuals within a society. It is important for marketers to be aware of these restrictions as they can be complex.

Some products are regulated by both state and federal laws. There are even restrictions for some products as to who the target market may be, for example, cigarettes should not be marketed to younger children. There are also many restrictions on subliminal messages and monopolies.

relationship of micro market and macro environmental forces

As laws and regulations change often, this is a very important aspect for a marketer to monitor. As laws and regulations change often, they create barriers that can hugely influence the way in which companies can market their business across the digital community in particular. When conducting business in the United Kingdomthe government is committed to ensuring the best possible platform to start and grow a UK digital business [5]therefore Internet Governance becomes a vital force in the management and control of the growth of the internet and its usage [6] The final aspect of the macro-environment is the social environment, which consists of institutions and basic values and beliefs of a group of people.

The values can also be further categorized into core beliefs, which passed on from generation to generation and very difficult to change, and secondary beliefs, which tend to be easier to influence.

As a marketer, it is important to know the difference between the two and to focus your marketing campaign to reflect the values of a target audience. These values can also be further categorized into core beliefs, which passed on from generation to generation and very difficult to change, and secondary beliefs, which tend to be easier to influence.

With entering into an age where technology has a key role in the forming of social beliefs and values, cultural diversity has developed within the world of digital communities [7]. FacebookTwitterLinkedIn. These digital communities consist of many groups of demographics that involve different levels of Internet usage and versatile behaviour with online purchasing [8].

CAPS BS 10 TERM 1 WEEK 8 Interrelationship of micro, market and macro environments | Leaddership

These forces contribute to building and maintaining relationships with customers. A macro environment consist of forces that affect the economy as a whole not just specific segments of it. Demographics are the study of population, location, density, size, age, gender, race, age and occupation. Demographics are important because people are the market consumers. Knowing what demographic you are selling a product or service to, allows a company to forecast sales, create market demand, make sure enough product is in production and tailor their product to a specific market segment.

While the natural environment is impacted by natural disasters, weather and unexpected natural events. Natural events can greatly impact growth, production, distribution and purchasing of a product or service.

Technological forces come in several different forms. Technology is vital to most of the business world. Technology allows companies to know exactly how much of a product they have in a warehouse, in transit or on the shelves in stores due to bar codes that can be scanned at each point.

Technology is works in many ways such as communication, tracking and marketing to name a few. The political environment influences marketing through government agencies, laws and groups. These beliefs influence our daily lives. Some of these forces are suppliers, the companycompetitors, marketing intermediaries, public and customers. Suppliers are an important force in the value delivery network. Suppliers are responsible for getting the product to the point where it can go to market.

Suppliers deliver or supply raw materials, goods or services.

The Macro environment