Marketing Micro and Macro Environmental Factors

In analysing the macro-environment of an organization, it is important to identify the factors that might in turn affect a number of vital variables that are likely to influence the organization’s supply and demand levels and its costs (Johnson and Scholes, 1993).

Tropical countries such as India, endowed with rich biodiversity and natural resources. People consider environment as a part of their lives. Therefore, the natural environment should not be affected by the business activities. In India, natural resources such as water considered sacred. Also there are many powerful NGOs act upon environmental issues. For example, Coca Cola had to face many hardships in India because of the environmental issues. Therefore, it is very important to be careful with environment in the said country.

1. Macro environment analysis: the major externals which affect company’s decision making, marketing strategy and performance. It includes:

External environmental factors are the macro environment affecting a business; they are factors outside the company and which they have no control over (Kotler & Armstrong, n.d.) these external factors bring about impacts to the company thus a company should always be prepared to react.

Macro environment or macro forces consists of the larger societal factors that have the potential to affect an organization’s strategies. According to Phillip Kotler, these variables include demographic, economic, natural, technological, political, and cultural outside forces. (“Josbd”, n.d, para. 7)

Macro environment are the external and uncontrollable factors that influence an organization’s decision making and affects its performance and strategies.

The environment in which a company finds itself has been a factor in a firm’s strategy, because of access to raw materials. The environment in which a company operates can make and break the company at the same time. Environmental factors are evaluated on the footprint left behind by a firm on its respective surroundings. It is important that every individual or management considers the environment in which they intend to set up a business.

A macro business environment is inclusive all elements, that are out of the business’ control, that has direct and relative influence on strategic planning and goals. The microenvironment, includes current and any changes in local, state, federal and international laws and regulations. Laws and regulations literally dictate how a business regardless, of its sector, the guidelines of its operations. The state of the economy, consumer market and spending trends are also a major factor in the macro environment equation. The purchasing power, of the consumer, is vital for any business sector to succeed. In today’s technology driven society, it is utmost importance, that a business is, within the established perimeters of technology for their industry, or on the cusp of the cutting edge of technology. If a business has effective and efficient technology, across the board, in force, it can potentially cut costs and drive consumers to them. A business’ demographics

These factors influence the internal environment of an organisation and they help in identifying the past and the present of the company, It also provides a frame work for reviewing strategy position and direction of the company.

Identifying influencing factors of a company’s macro-environment helps in the strategic development and management within a company. The macro-environment outlines an industry and the competitive environment as seen in figure 3.1, (Gamble, Peteraf, Thompson, 39). Within the macro-environment there are the political factors, economic conditions, sociocultural forces, technological factors, environment forces, and legal/regulatory factors. All of these factors blanket the habitat an industry and its competition thrive in. Inside the industry and competitive environment there are five factors that influence an individual company. The five factors are suppliers, rival firms, new entrants, buyers, and substitute products. The biggest impact on a company are these five factors. For example, Under Armour focuses on their industry and competitive environment to survive and grow. Their strategy to win over the market share from Nike and Adidas consists of expanding a stable and original brand within record time, taking an innovative approach to their product line-up and brand-name appeal where the market seemed to be barren, and lastly, the company enters in the foreign market early on to establish its brand and influence markets outside of the US.

Macro environment is said to be the most general layer of the environment. This consists of broad environmental factors that have an impact on the organization. The PESTEL framework helps us to identify the future trends which might impinge on Nintendo and therefore identify the key drivers of change. On the other hand the five forces framework helps to understand how the competitive dynamics within and around the video game industry are changing.

There are many factors that will affect the decisions of the managers of any organization. Even The Coca-Cola Company, the worlds? largest beverage company has to consider about their macro environment as well as

Micro-Marketing and Macro-marketing have to completely different meanings. According Basic Marketing the 9th edition by William D. Perrault, Joseph Cannon, and Jerome McCarthy define micro-marketing concerns the marketing activities of an individual firm, whereas macro-marketing deals with how the whole marketing system works (Perrault, Cannon, McCarthy 2014, p 526). I will be discussing organizational domestic and international, micro and macro marketing impacts on business and society, and identifying environmental elements that affect their marketing strategies.

Macro environment consist of those major external and uncontrollable factors that influence an organization's decision making, and affect its performance and strategies.

An organization is an open system; therefore it interacts with its environment. To manage the relationship with the environment, a large part of strategic planning is concerned. The environmental factors can be divided to 2 main categories, which is MACRO and MICRO .Macro environmental factors seriously affect an organization business practice, profitability and future progress. It can