Explain the Macro Environmental Factors of Marketing. OR Explain the Macro Environmental Factors of Marketing.
Macro Environmental Factors of Marketing :
a) Economic Environment :
There are various changes in various policies of the Government. Many policies of the Government such as taxation policy, wages - employment policy, trading policies, credit supply policy always change with the conditions of the economy - whether there are inflationary or deflationary trends. Period of recession or recovery also changes the marketing environment.
b) Demographic Environment :
It consists of a structure of the population and its division according to sex, age group, income group, marital status, and profession, etc. The marketer should study these demographic factors. These factors affect marketing strategies and so they are important.
The study of these factors helps to develop an understanding of prospective consumers and the market potential of a product and facilitates market segmentation. The study of these demographic factors provides all the requisite information about consumers which is essential for market segmentation.
c) Social-Cultural Environment :
It consists of a whole variety of cultural beliefs, values, traditions, attitudes of the people, social groups, etc. There are several social institutions and groups in society. A number of movements take place in society e.g. Consumers movement, the trade union movement, shareholders movement, etc.
This movement in turn affects business practices and business ethics. Conflicting interests of different groups in the social cause damage to unity among various groups - investors, buyers, sellers, producers, trade associations. Everybody struggles to protect the interests of a specific group; which disturbs social peace. The sociological environment also gets spoiled as many factors start operating in the society at one and the same time historical, ethical, moral, institutional, geographical, etc.
D.Political And Government Factor:
The ruling parties at the state level and at the Central Government level change the environment. Political uncertainties and unsteadiness affect the various policies of the government which influence the economy as a whole.
If political conditions are uncertain the large size companies cannot make investment decisions. Political uncertainties affect the investment climate. Entrepreneurs are generally reluctant in making new, additional investments. The economic system and the policies adopted by politicians (ruling party) together change the marketing environment.
e) International Environment :
The International or Global Environment consists of all those factors that operate at the transitional cross-cultural and across the border level which have an impact on the business of an organization. Some of the important factors and influences operating in the international environment are as follows:
1) Globalization, its process, content, and direction.
2) Global economic forces, organizations, blocks, and forums.
3) Global trade and commerce, its process, and trends.
4) Global financial system, sources of financing, and accounting standards.
5) Geopolitical situation, equations, alliances, and strategic interest of nations.
6) Global demographic patterns and shifts.
7) Global human resource institutions and their availability, nature, and quality of skills and expertise, mobility of labor, and other skilled personnel.
8) Global information systems, communication networks, and media.
9) Global technological and quality systems and standards.
10) Global markets and competitiveness...!
11) Global legal systems, adjudication, and arbitration mechanisms.
12) Globalization of Management and allied disciplines, and the diffusion of management techniques in the industry.