Chapter 5.4, Problem 1CY

Summary Introduction

To determine: The six key macro-environmental factors.

Introduction: Real outside and uncontrollable factors that impact an association's basic leadership, and influence its execution and procedures. These variables incorporate the financial, socio-economics, legitimate, political, and social conditions, innovative changes, and characteristics power is termed as macro-environment.

Answer to Problem 1CY

The six key macro-environmental factors are culture, demographic, political/ legal, social, economic and technology.

Explanation of Solution

Following are the six-macro-environmental factors are discussed below:

• Culture: The test for advertisers is to have items or administrations identifiable by and pertinent to a specific gathering of individuals. Different societies impact what, why, how, where, and when the consumer purchase. Two measurements of culture that advertisers must consider as the company build up the promoting procedures are the way of life of the nation and that of a district inside a nation.
• Political/legal: The companies must understand various laws and legislation, in order to obey with any regulation dealing with the consumer protection, fair competition or industry-specific regulation.
• Economic: The general economic situation prevailing in the home country as well as abroad is analyzed as it will influence the buying pattern of the consumer.
• Demographic: Demographics indicate the human populations and segments, especially the consumer markets.
• Social: By keeping in mind the consumer’s health and wellness as well as the privacy concerns, consumer’s value can be shaped.
• Technology: The value is added to the product by improving the quality of the goods and services.