Marketing Micro and Macro Environmental Factors Essay

Macro and micro environments both fall into the categories of environmental s arsening. The general scope of environmental scanning is that it is a component of global environmental analysis. While analyses argon typically carried out on the macro environment, the micro environment still has an important role to play. In summary, the macro environment is touch with the industries, companies, grocerys, clients and competitors, while the micro environment can be represented by the suppliers, competitors and customers.Macro purlieuThese are the major external and uncontrollable factors that influence an organizations decision making, and affect its performance and st browsegies.The macro environment is typically segmented for the reasons of analysis. This analysis, commonly referred to as a PESTLE analysis, allows researchers to look at the important six environmental factors that affect a argumentation. These factors are political, stintingal, technological, environmental, legal a nd social. Each of these factors indirectly affects the company still the company cannot control them. Instead the company is required to adapt to these factors in the most efficient focus possible. The results of this analysis allow the company to see where their strengths are when adapting to the macro environment and where they could improve on their methods.1. sparing EnvironmentEconomic environment of parentage has reference to the board characteristics of the stinting governance in which the occupation operates. The business sector has economic relation with the government, capital market household sector and global sector. These sectors unitedly influence the trends and structure of the economy. The form and accountabilitying 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 development and so forth are important determinants of the business strategies. commercial enterprise cycles and economic harvest-time of the economy are important factors defining the economic environment. (ii)The economic system operate in the country also affects the business enterprise to a very great extent. The economic system of a country may be capitalist, socialist, communist or goed.(iii)Economic Policies The government dissolves the economic environment of business through Budges, Industrial regulations, Economic planning, Import and Export regulations, Business laws, Industrial policy, Control on prices and wages, clientele and transport policies, the size of the national Income, Demand & supply of various goods etc. (iv)Economic Growth The stage of economic growth of the economy has direct bear upon on the business strategies. Increased economic growth rate and increase in consumption expenditure, lower t he general stuff within an industry and wisecracks more opportunities accordingly threats.(v)The rate of interest affects the demand for the harvest-homes in the economy, particularly when general goods are to be purchased through borrowed finance. start interest rated provides opportunities to the industries to expand whereas rising interest rates pose a threat to these institutions. (vi)Currency Exchange up-to-date exchange rates ache direct w pungency on the business environment. When the rupee was devalued in 1991, it was to make Indian products cheaper in the world market and consequently boost Indias exports.2. Political and political EnvironmentPolitical environment refers to the influence exerted by the three political institutions they are Legislature, Executive, Judiciary etc. The legislature decides on a particular course of action. Government is the executive and its job is to implement some(prenominal) was decided by parliament. The judiciary has ensure that both the legislature and executive function in normal 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 success 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 availability and departingness of individuals to work. Social class and caste of a person goes a long direction in deciding the business activities in relation to its production and marketing activities. Tradition, customs and social attitudes have changed the attitude and beliefs of the persons which have their effect on organizational environment. Class and caste are influencing the purchasing pattern. Socio-cultural environment may admit expectations of the society from business, attitudes of society towards business and its swayment, views tow ards achievement of work, views towards structure, responsibility and organizational positions, views towards customs, traditional and conventional, class structure and churn mobility and level of education.4. Natural EnvironmentEnvironmental factors let in the weather and climate change. Changes in temperature can impact on many industries including farming, tourism and insurance. With major climate changes occurring due to global warming and with greater environmental awareness this external factor is becoming a significant issue for firms to consider. The growing desire to shelter the environment is having an impact on many industries such as the travel and transportation industries for example, more taxes existence placed on air travel and the success of hybrid cars, and the general move towards more environmentally friendly products and processes is affecting demand patterns and creating business opportunities.5. Demographic EnvironmentDemographic factor include Size, growth rate, age composition, sex composition etc. of population, Family size, Economic stratification of population, Educational level, Caste, religion etc. each these demographic factors are relevant to business. These factors affect the demand for goods and operate. High population growth rate indicates an commodious increase in labor supply. Population with varied tastes, preferences, beliefs, temperaments etc. gives rise to differing demand pattern and calls for diverse marketing strategies.6. Technological EnvironmentIn order to survive in todays competitory world, a business has to adopt technological changes from time to time. New technologies create vernal products and new processes. applied science can reduce costs, improve quality and lead to innovation. These developments can benefit consumers as well as the organizations providing the products. MP3 players, computer games, online gambling and high definition TVs are all new markets created by technological advances. On line shopping, stripes 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 emergent as the force 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. populace is becoming small in size due to advanced means of transport and communication facilities. (iii)Learning of international languages is must for every business bedr. (iv)Acquiring familiarity with foreign currencies is also must. (v)Facing political and legal uncertainties is inevitable. small 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 phy sical infrastructure is focused on competitiveness.These factors includeCustomersOrganizations survive on the basis of meeting customer needs 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 check round 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 crucial in obtaining a competitive edge. Employing staff with relevant skills and experience is essential. This process begins at enlisting stage and continues throughout an employees employment via ongoing training and promotion opportunities. If a business employs staff without motivation, skills or experience it will affect customer service and ultimately sales.SuppliersSuppliers provide businesses with the materials they need to mail out their business activities. A suppliers behavior 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 relationships are an effective way to remain competitive and secure quality products.ShareholdersAs organisations require inward investment 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 profits will affect organisational strategy. Relationships with shareholders need to be managed carefully as rapid compact term increases in profit could detrimentally affect the long term success of the business.MediaPositive media worry can make an organisation or its products and ostracise media attention can break an organisation. Organisations need to manage the media so that the media help promote the positive things about the organisation and reduce the impact of a negative event on their reputation. virtually organisations will even employ public relations (PR) consultants to help them manage a particular event or incident. Consumer television system programs with a wide and more direct earreach 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. rivalrysThe name of the game in marketing is differentiation. Can the organisation offer benefits that are better than those offered by competitors? Does the business have a unique 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 difficult to beat their competitors. The market can move very quickly for example through a change in calling 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