Micro and Macro environment factors

By using Marketing strategy, organizations concentrate their resources on the greatest opportunities to increase sales and maintain a competitive advantage in its market (Wickipedia, pg1).Market segmentation is the process companies use to divide their market into groups of buyers and establish marketing tailored to individual groups. Market targeting is the process of actually choosing the market which poses the greatest profitability. Positioning involves product placement and helps marketers highlight their product over a competitor. The

segmenting customer groups. The psychographic segment variables include people with similar personalities, values, and lifestyles. The last of the segmentation bases of the U.S. consumer markets would be behavioral segments. These are actions a person takes in purchasing and using products and services. Some of these segment variables include outlet type, direct, product features, usage rate, user status and awareness/intentions. Once the segmentation of the market is developed, the second step is to group products to be sold into categories. One can then develop a market-product grid and estimate the size of the markets. A market-product grid is a framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization. 3 Steps four and five consist of using the segmentation will help to develop the target markets, which in turn will then lead to successful marketing actions. Successful segmentation depends on

There are many influences on the macro-level and micro-level that have shaped who I am today. These influences have helped me to adopt the beliefs, values, and norms that I currently possess. My family, peers, and neighbors are all micro-level influences who had a great impact on who I am today. Technology and news from around the world are just a few of the macro-influences that have impacted me. Who I am today was influenced by many eras, events, and people on both the macro and micro level.

Marketing strategy and marketing are becoming more important elements to the business now than ever before, due to dynamic environment throughout the globe. The changes taking place in the political, social, economical and technological environment have a great impact on the businesses and posing great challenges to the business to survive in the dynamic market place as the world is transforming into the boundary less world. (Crittenden VL, Crittenden WF & Muzyrka DF, 2002)

Market Segmentation – How & Why As well as the physical aspect of our store changing we have to look at the market differently. Where it was once possible to take a pile it high sell it cheap approach, to achieve broad appeal to the population we need to cater to the needs of the population. This is achieved by breaking the population into groups and then releasing products and services that meet the needs of these groups. This is known as target marketing. Although we all appreciate the theoretical economies of scale given by mass marketing a single product, there are few products that appeal to everyone.

Market segmentation and the identification of target markets, however, are an important element of each marketing strategy. They are the basis for determining any particular marketing mix. Basic steps in marketing strategy are as follows:-

Micro Environment - This is made up of internal factors, which means that the organisation is able to control their microenvironment

In order to satisfy all the customers’ preferences and different requirements companies use the segmentation process to identify and satisfythe different customer groups. In mass MARKETING, same strategies and marketing mix can be applied to all the customers where as in target marketing the strategies can be made based on different categories of customers. Thus, targeting market can provide effective results to an organization.

There are three general strategies for selecting target markets, which is undifferentiated, concentrated, and multisegment targeting. The Mcdonald’s company was used multisegment targeting for their target markets. A firm that chooses to serve two or more well-defined market segments and develops a distinct marketing mix for each has a multisegment targeting strategy. Below, explanation about target markets strategy for Mcdonald’s company:

Behavioral segmentation divides the market based on their knowledge, attitudes, uses, or responses to a product. It considers the occasion,

Different organisation follow different kinds of market segments, and creates product differentiation strategies, however some different ways of variable we can segment in our market include the following- demographic,geographic, psychological and behavioural segmentation.

Target marketing involves the analysis and understanding of some of the factors that can affect organisations as they serve the interests of their markets and individual consumers. Segmentation is a key element of marketing - particularly in the very competitive markets that

An important part of marketing is selecting the market you want to enter to provide your products or services. So once you have successfully used market segmentation to divide your market into reasonable consumer segments, you then need to use targeting to choose the market you are going to serve.

Microenvironment- microenvironment surrounds the factors that are close a company that affects their ability to serve their customers, this would include; Customers, suppliers, competitors, other departments within the company, general public, marketing intermediaries and finally members of the distribution channel. These are all forces that closely influence the company and they have a direct affect on the organizations relationship. The suppliers of a company are a part of the microenvironment as even if there is a slight delay in receiving any supplies off the suppliers can result in the customers not being satisfied. Marketing intermediaries are the people that are helping to promote and sell the companies products. Competitors include companies that are offering the same or similar products, for example; Morrisons, Tesco and Asda are all in competition with each. It is in the company’s best interest to develop a strategic advantage over their competitors, encouraging customers to come to them not their competitors. This would include Tesco giving you vouchers for any price difference with their competitors ( if your total bill comes to more than it would in one of the competitor stores then you are given the

The microeconomics environment is the study of individuals and firms or organisations, which are directly linked to business. The study of microeconomics focus on subsisting and prospective stakeholders of company.