Macro

environment
Macroenvironment

The Demographic Environment - population, including the size and growth rate of
population in cities, regions, and nations; age distribution and ethnic mix; educational
levels; household patterns; and regional characteristics and movements.
1. WORLDWIDE POPULATION GROWTH
2. POPULATION AGE MIX
preschool children, school-age children, teens, young adults age 20 to 40, middle-aged adults 40 to 65,
and older adults 65 and older
3. ETHNIC AND OTHER MARKETS
4. EDUCATIONAL GROUPS
illiterates, high school dropouts, high school diplomas, college degrees, and professional degrees.
5. HOUSEHOLD PATTERNS
Macroenvironment

The Economic Environment - The available purchasing power in an economy depends

on current income, prices, savings, debt, and credit availability
1. CONSUMER PSYCHOLOGY
2. INCOME DISTRIBUTION
(1) very low incomes;(2) mostly low incomes;(3) very low,very high incomes; (4)low,medium,high
incomes; and (5) mostly medium incomes
3. INCOME, SAVINGS, DEBT, AND CREDIT
Macroenvironment

The Sociocultural Environment - we absorb, almost unconsciously, a world view that

defines our relationships to ourselves, others, organizations, society, nature, and the
universe.
1. Views of ourselves
2. Views of others
3. Views of organizations
4. Views of society
Preservers, makers, takers, changers, seekers, escapers
1. Views of nature
2. Views of the universe
Macroenvironment

The Sociocultural Environment - we absorb, almost unconsciously, a world view

that defines our relationships to ourselves, others, organizations, society, nature,
and the universe.
1. HIGH PERSISTENCE OF CORE CULTURAL VALUES
1. Core values -passed from parents to children and reinforced by social institutions—
schools, churches, businesses, and governments.
2. Secondary beliefs - more open to change.
2. EXISTENCE OF SUBCULTURES
1. Subcultures-groups with shared values, beliefs, preferences, and behaviors
emerging from their special life experiences or circumstances
Macroenvironment

The Natural Environment - “green”parties have pressed for public action to reduce
industrial pollution. Trends in the natural environment for marketers to be aware of
include the shortage of raw materials,especially water; the increased cost of energy;
increased pollution levels; and the changing role of governments.
– Nearly a quarter of the carbon dioxide that makes up about 80 percent of all greenhouse
gases comes from electrical power plants
– Transportation is second only to electricity generation as a contributor to global warming,
accounting for roughly a fifth of carbon emissions.
– A person cooking over an open wood or kerosene fire inhales the equivalent of two packs
of cigarettes a day
**Corporate environmentalism recognizes the need to integrate environmental issues into the
firm’s strategic plans
Macroenvironment
Macroenvironment

The Technological Environment - It is the essence of market capitalism to be

dynamic and tolerate the creative destructiveness of technology as the price of
progress.
– ACCELERATING PACE OF CHANGE
– UNLIMITED OPPORTUNITIES FOR INNOVATION
– VARYING R&D BUDGETS
– INCREASED REGULATION OF TECHNOLOGICAL CHANGE
Macroenvironment

The Political-Legal Environment - consists of laws,government agencies,and

pressure groups that influence various organizations and individuals
– INCREASE IN BUSINESS LEGISLATION
– GROWTH OF SPECIAL-INTEREST GROUPS
The consumerist movement organized citizens and government to strengthen the rights and
powers of buyers in relationship to sellers
Microenvironment

Midterms
Microenvironment
customers

Public suppliers

Components

Marketing
competitors
Intermediaries
Customers

– Customers are the actual buyer of our goods and

services.

– The company must study its customer markets closely

sinceeach market has its own special characteristics.
 • individuals and households that buy
Consumer
goods and services for personal
Market
consumption

• buy goods and services for further

Business
processing or for use in their
Market
production process
Reseller • buy goods and services in order to
Market resell them at a profit

• agencies that buy goods and services

Government
in order to produce public services or
Market
transfer them to those that need them
International
• buyers of all types in foreign countries
Market
Suppliers

– Suppliers are firms and individuals that provide the resources neededby the
company.

– They are an important link in thecompany’s

– overall customer“value delivery system.”
 Suppliers

Right
Timely Price Quality
Product
Competitors

– Conducting competitor analysis is critical for success of thefirm

– A marketer must
– monitor itscompetitors’ offerings to create strategic advantage
 Marketing Intermediaries

Reseller
– Marketing intermediaries are
firms that help the company
to promote, sell, and
distribute its goods to final Distribution
buyers. Marketing
intermediaries
Financial

Marketing
Service
Reseller
• They are those who hold and sell company’s
product.
• Wholesaler and retailer.

Physical Distribution Firm

• They help the company to stock and move
goods from their points of origin to their
destinations.
• Transportation and warehousing.
Marketing ServiceAgencies

• Theyhelp the company target and promote its products.

• Advertising agencies. Mediaagency, marketing research
firms,etc.

– Financial Intermediaries
• Theyhelp finance transactions and insure
– against risks.
• Banks, credit companies, insurancecompany, ect.
Public

– Apublic is any group that has an actual or potential

– Interest in or impact on an organization’s ability to achieve its objectives.
– Acompany should prepare a marketing plan for all of their majorpublics.
 Financial

Media Citizen

Public
Groups
Local Internal

General
External
Environment

Midterms
Opportunities

A marketing opportunity is an area of buyer need and interest that a company has
a high probability of profitably satisfying.
– offer something that is in short supply. This requires little marketing talent, as
the need is fairly obvious.
– supply an existing product or service in a new or superior way. How? The
problem detection method asks consumers for their suggestions, the ideal
method has them imagine an ideal version of the product or service, and the
consumption chain method asks them to chart their steps in acquiring, using,
and disposing of a product
– totally new product or service
Threats

– An environmental threat is a challenge posed by an unfavorable trend or

development that, in the absence of defensive marketing action, would lead to
lower sales or profit
Internal
Environment

Midterms
Strength and Weakness

– it should limit itself to those opportunities for which it possesses the required
strengths, or consider those that might require it to find or develop new
strengths