Micro and Macro Environment Factors | Oxford College of Marketing Blog
Difference between Micro and Macro Environment: Today marketing has grown into such an enormous level that it affects every individual. Keywords: Macro and Micro Marketing Environment, Marketing Strategy Formulation, Marketing Performance consisting of forward linkage and backward linkage. Graph 1: Growth distribution percentage of gross regional domestic product. There are two kinds of external marketing environments; micro and macro. These environments' factors are beyond the control of marketers but.
That is the value of a dollar or a rupee has come down. The purchasing power of a rupee or real value gets reduced. For same quantity and quality of goods, people are forced to pay higher prices. Inflation of wild dose is good for everyone but wild rise is bad for the society particularly middle and poor class. That consumer spend less and less on luxuries, comforts and concentrate as basic necessities of living.
Macro and Micro Environment of Marketing (With Diagram)
This inflation poses a real problem in managing marketing programme in that as to how to price the products and how to control the costs. The people spend not only less as purchasing power is reduced but also prefer to spend today than later as there is danger for further price rise.
It is a precautionary stand as value of a rupee falls day by day. It is but natural that when interest rates go high they do not go in for long-term needs such as housing, automobiles as they find it difficult to fulfil their short-term needs.
That is why, the only anecdote to cut the prices of products substantially and zero rate of interest programmes in case of durable goods to increase or sustain business. Obviously the competitive environment is a major component affecting the marketing efforts. As firms are going global, there is threat of external competition in addition to internal competition. Today, Indian market is filled with all foreign products in important areas like electronics, electrical, textiles, agro-based products and the like.
The types of competition can be brand competition, substitute product competition, limited customer competition.
Difference between microeconomics and macroeconomics
Social and Cultural Forces: The marketing managers of today do not have sound sleep because social and cultural values and value systems are constantly changing affecting the present marketing programme. This component is made up of social and cultural forces. Social forces stand for social values of life and living. The society of today can be divided into materialistic and spiritual values.
The domestic or materialistic values say life is short-beg, borrow or steal but enjoy the life. While other group says think of simple living and high thinking because more and more needs and wants are the root causes of our miseries of life. On the other hand, cultural values are also changing as to clothing, shelter and day to day living. If girls and boys want jeans, other ever better products will not do.
Again we people as the member of society are interested in environmental friendly products like soap-less soap, smokeless cigarette, diet beer, high tech food, fast food and so on.
Today, women liberation movement has made home ministry all the powerful though finance minister is financing all the needs, because marketing manager of family is a housewife.Micro and Macro Environment of Marketing
Again parents alone do not decide but children too. It has resulted in fast changing lifestyle of women and earning capacity bringing into play health and fitness, impulse buying and conveniences.
Political and Legal Forces: The political and legal forces prevailing in country can be grouped into at least five captions namely: Monetary and Fiscal policies: Marketing systems are affected by the level of government spending, the money supply and its tax policies.
Social legislation and Regulation: Legislation affecting the environment anti-pollution laws, protection of public life and the like. Governmental relationship with the industries: This relates the treatment given by government in case of industries and industrial units in terms of subsidies and penalties. This also speaks of the encouragement and discouragement through incentives and fines controlling and decontrolling. Legislation related specifically to marketing: There are many Acts and Laws specifically applied in the area of marketing—that affect the working of these units.
Here the marketing executives need not be lawyers but should be aware of the Acts and provisions affecting their area. These Acts may be central, state and local. Source of information and buyer of the product: This area is one where governments at all levels publish information to help the executives as government is the bulk buyer in case of some common duties and services.
Technology has an immense impact on our daily life and life-styles, our consumption patterns and economic well-being. Just imagine the technological developments over the years of any commodity say watch, sport, radio, television, telephone, anit-bodies and think what would be the shape of the things to come after say 10 or 20 years. Perhaps the most important breakthrough is miniaturization of electronic products. Technological breakthrough can affect markets and marketing activities at least in three ways: For instance, already existing home equipment and appliances can generate free time to households to engage in new activities.
It should be noted that technology is a mixed blessing in other ways too. On one hand it helps us to improve our lives, at the same time, creates environmental and social problems.
Thus automobiles have come to stay, creating problems of traffic jams, air pollution. While they are generally controllable, these external forces can be influenced more than the macro forces so far discussed. For instance, a marketing organisation can exert pressure on its suppliers or middlemen.
Through advertising, a firm has some influence on its market. Let us take up these three points for better understanding.
As noted earlier, market really is what marketing is all about how to reach it and serve it profitably and in a socially responsible manner. It goes without saying that market becomes the focus of all the marketing decisions in an organisation.
Difference between microeconomics and macroeconomics | Economics Help
In this context, a market is a place where buyers and sellers meet, goods and services are offered for sale and transfer of title of the goods takes place. In other words, market is demand made by a certain group of potential buyers for a good or service.
For example, there is a farm market for plastic products. Some of these factors are controllable while some are uncontrollable and require business operations to change accordingly. The marketing environment can be broadly classified into three parts: Internal Environment — The Internal Marketing Environment includes all the factors that are within the organization and affects the overall business operations. These factors include labor, inventory, company policy, logistics, budget, capital assets, etc.
These factors can be controlled by the firm. Microenvironment- The Micro Marketing Environment includes all those factors that are closely associated with the operations of the business and influences its functioning. These factors are controllable to some extent. These factors are further elaborated: Thus, each marketing strategy is customer oriented that focuses on understanding the need of the customers and offering the best product that fulfills their needs.
Employees— Employees are the main component of a business who contributes significantly to its success. The quality of employees depends on the training and motivation sessions given to them. Suppliers— Suppliers are the persons from whom the material is purchased to make a finished good and hence are very important for the organization. Competitors— Keeping a close watch on competitors enables a company to design its marketing strategy according to the trend prevailing in the market.
Thus, marketing activities should be undertaken keeping in mind the returns to shareholders.