Marketing Micro and Macro Environmental Factors Essay

Macro and micro surroundingss two f completely into the categories of environsal s washbasinning. The ordinary background knowledge of milieual s merchantmanning is that it is a component of global milieual analysis. epoch analyses be typically carried out on the macro environment, the micro environment still has an substantial role to play. In summary, the macro environment is complicated with the industries, companies, markets, clients and competitors, while the micro environment great deal be represented by the suppliers, competitors and customers.Macro milieuThese atomic number 18 the major external and un take forlable portions that mildew an agreements decision making, and affect its performance and st stridegies.The macro environment is typically segmented for the reasons of analysis. This analysis, commonly referred to as a PESTLE analysis, allows researchers to air at the main six environmental work outs that affect a patronage. These factors ar politi cal, scotchal, technological, environmental, legal and social. Each of these factors indirectly affects the company but the company cannot control them. Instead the company is required to adapt to these factors in the most cost-efficient way possible. The ordinaryations of this analysis allow the company to see where their strengths be when adapting to the macro environment and where they could improve on their methods.1. stinting EnvironmentEconomic environment of chore line has reference to the board characteristics of the economic organization in which the care operates. The business area has economic relation with the government, capital market crime syndicate sector and global sector. These sectors together determine the trends and structure of the economy. The form and military operation of the economy vary widely. The important external factors that affect the economic environment of a business are (i)Economic Conditions The general Economic conditions prevailing in the country viz. national income, per capita income, economic resources, distribution of income and assets, economic nurture etcetera are important determinants of the business strategies. Business cycles and economic increment of the economy are important factors defining the economic environment. (ii)The economic system operating in the country also affects the business enterprise to a very great extent. The economic system of a country may be capita identify, socialist, communist or mixed.(iii)Economic Policies The government decides the economic environment of business by Budges, industrial regulations, Economic cooking, Import and Export regulations, Business laws, Industrial policy, Control on prices and wages, Trade and transport policies, the size of the national Income, contract & supply of conglomerate goods etc. (iv)Economic Growth The stage of economic growing of the economy has direct impact on the business strategies. Increased economic growth rate and increase in consumption expenditure, lower the general pressure inside an industry and cracks more opportunities then threats.(v)The rate of take affects the demand for the harvest-times in the economy, particularly when general goods are to be purchased through borrowed finance. Low interest rated provides opportunities to the industries to expand whereas rising interest rates ticktack a threat to these institutions. (vi)Currency Exchange Current exchange rates take aim direct impact on the business environment. When the rupee was devalued in 1991, it was to make Indian products cheaper in the world market and consequently advance Indias exports.2. Political and Governmental EnvironmentPolitical environment refers to the influence exerted by the three political institutions they are Legislature, Executive, Judiciary etc. The legislative assembly decides on a particular course of action. Government is the executive and its hire out is to implement whatever was decided by par liament. The judiciary has ensure that both the legislature and executive function in public interest and within the boundaries of constitution. Legal and political environment provides a framework within the business is to function and its existence depends on the advantage with which it can face the various challenges constructed out of political and legal framework.3. Socio-cultural EnvironmentChanges in social trends can impact on the demand for a firms products and the approachability and willingness of individuals to work. Social class and caste of a person goes a grand way in deciding the business activities in relation to its outturn and marketing activities. Tradition, customs and social attitudes have changed the attitude and beliefs of the persons which have their action on organizational environment. Class and caste are influencing the purchasing pattern. Socio-cultural environment may include expectations of the society from business, attitudes of society towards b usiness and its management, cyphers towards achievement of work, views towards structure, responsibleness and organizational positions, views towards customs, traditional and conventional, class structure and labor mobility and level of education.4. born(p) EnvironmentEnvironmental factors include the weather and climate change. Changes in temperature can impact on many industries including farming, tourism and insurance. With major climate changes occurring callable to global warming and with greater environmental awareness this external factor is becoming a significant issue for firms to consider. The growing desire to nourish the environment is having an impact on many industries such as the run and transportation industries for object lesson, more taxes being placed on air croak and the success of hybrid cars, and the general move towards more environmentally companionable products and bear ones is affecting demand patterns and creating business opportunities.5. Demogr aphic EnvironmentDemographic factor include Size, growth rate, age composition, sex composition etc. of population, Family size, Economic stratification of population, Educational level, Caste, religion etc. All these demographic factors are relevant to business. These factors affect the demand for goods and services. High population growth rate indicates an enormous increase in labor supply. Population with varied tastes, preferences, beliefs, temperaments etc. gives rise to differing demand pattern and calls for different marketing strategies.6. Technological EnvironmentIn order to survive in todays private-enterprise(a) world, a business has to adopt technological changes from time to time. New technologies earn new products and new processes. Technology can reduce costs, improve grapheme and lead to innovation. These developments can benefit consumers as well as the organizations providing the products. MP3 players, computing device games, online gambling and high definition TVs are all new markets created by technological advances. Online shopping, bar coding and computer aided design are all improvements to the way we do business as a result of better technology.7. International EnvironmentAnother environmental factor which is fast-flying emerging as the persuasiveness to reckon with is the international environment. Implications of global or international environment are (i)Due to liberalization, Indian companies are forced to view business issues from the global perspective. (ii)Safe and protected markets are no longer there. sphere is becoming small in size due to advanced message of transport and communication facilities. (iii)Learning of conflicting languages is must for every business manager. (iv)Acquiring familiarity with foreign currencies is also must. (v)Facing political and legal uncertainties is inevitable.Micro EnvironmentMicro environmental factors are internal factors close to a business that have a direct impact on its strategy. . Within the micro environment it is important that the layout of the physical infrastructure is focused on competitiveness.These factors includeCustomersOrganizations survive on the basis of meeting customer inquires and wants and providing benefits for their customers. Failure to do so will result in a failed business strategy. As all businesses need customers, they should be customer oriented.EmployeesEmploying the correct supply and keeping staff motivated is an essential part of an organizations strategic planning process. Training and development play a critical role in achieving a competitive edge especially in service sector marketing. This is clearly apparent in the airline industry, where customer services is decisive in obtaining a competitive edge. Employing staff with relevant skills and go is essential. This process begins at recruitment stage and continues throughout an employees employment via current training and promotion opportunities. If a business employs s taff without motivation, skills or experience it will affect customer service and ultimately sales.SuppliersSuppliers provide businesses with the materials they need to carry out their business activities. A suppliers demeanour will directly impact the business it supplies. For example if a supplier provides a poor service this could increase timescales or lower product quality. An increase in raw material prices will affect an organizations marketing mix strategy and may even force price increases. Close supplier dealinghips are an effective way to stick competitive and secure quality products. shareholdersAs arrangements require inward coronation to grow, they may decide to move from private to public ownership and list on the stock market. The introduction of public shareholders brings new pressures as public shareholders want a return from the money they have invested in the company. Shareholder pressure to increase arrive ats will affect organisational strategy. Relations hips with shareholders need to be managed carefully as rapid short term increases in profit could detrimentally affect the long term success of the business.MediaPositive media financial aid can make an organisation or its products and negative media attention can break an organisation. Organisations need to manage the media so that the media help promote the coercive things well-nigh the organisation and reduce the impact of a negative outlet on their reputation. Some organisations will even employ public relations (PR) consultants to help them manage a particular event or incident. Consumer television receiver programs with a wide and more direct audience can also have a very powerful impact on the success of an organisation. Some businesses recognise this and will change their reaction when consumers mention that they are going to contact a consumer television programme or the newspapers about the business.CompetitorsThe name of the game in marketing is differentiation. Can t he organisation offer benefits that are better than those offered by competitors? Does the business have a bizarre selling point (USP)? Competitor analysis and monitoring is crucial if an organisation is to maintain or improve its position within the market. If a business is unaware of its competitors activities they will find it very ambitious to beat their competitors. The market can move very quickly for example through a change in trading conditions, consumer behavior or technological developments. As a business it is important to examine competitors responses to these changes so that you can maximise the impact of your response