Market environment - Wikipedia
TOPIC – Interrelationship of micro, market and macro environments. The relationship between micro, market and macro environments. The relationship between. Enter Now and Discover the Difference Between Micro Marketing VS By definition, micro and macro are economic environments within which a small segment of consumers with specific needs for products in the market. The business environment is a marketing term and refers to factors and forces that affect a firm's ability to build and maintain successful customer relationships. The three levels of the environment are: Micro (internal) environment – small forces within the company that affect its The analysis of the macro marketing environment is to better understand the.
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. And finally those who are employed within the company and deal with the organization and construction of the company's product.
The Impact Of Micro and Macro Environment Factors on Marketing
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.
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.
Marketing Environment: Explanation, Components, & Importance | Feedough
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.
Difference Between Micro and Macro Environment
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. Physical Environment The physical environment includes the natural environment in which the business operates.
This includes the climatic conditions, environmental change, accessibility to water and raw materials, natural disasters, pollution etc. Technological Environment The technological environment constitutes innovation, research and development in technology, technological alternatives, innovation inducements also technological barriers to smooth operation.
Macro and Micro Environment of Marketing (With Diagram)
Technology is one of the biggest sources of threats and opportunities for the organisation and it is very dynamic. Social-Cultural Environment The social-cultural aspect of the macro environment is made up of the lifestyle, values, culture, prejudice and beliefs of the people. This differs in different regions. Importance of Marketing Environment Every business, no matter how big or small, operates within the marketing environment. The business environment is one of the most dynamic aspects of the business.
In order to operate and stay in the market for long, one has to understand and analyze the marketing environment and its components properly.
Essential for planning An understanding of the external and internal environment is essential for planning for the future. Macro Environment Factors Demographic forces: The skills and knowledge applied to the production, and the technology and materials needed for production of products and services can also impact the smooth running of the business and must be considered.
Political and legal forces: Social and cultural forces: The impact the products and services your organisations brings to market have on society must be considered. A recent example of this is the environment and how many sectors are being forced to review their products and services in order to become more environmentally friendly. Micro and macro environments have a significant impact on the success of marketing campaigns, and therefore the factors of these environments should be considered in-depth during the decision making process of a strategic marketer.