Forces in the macro environment
The macro - environment of any business consists basically of six factors:
• Demographic Environment
The first macro environmental force that marketers monitor is the population, because people make up the markets. Marketers are keenly interested in the size and growth rate of population in different cities, regions and nations, age distribution and ethnic mix.
• Economic Environment
The economic environment looks into the available purchasing power in an economy, which depends on the current prices, savings, debt and credit availability. Marketers must pay close attention to the major trends in income and consumer spending patterns.
• Natural Environment
Marketers need to be aware of the threats and opportunities associated with the four trends associated in the natural environment - the shortage of raw material, the increased cost of energy, the increased levels of pollution, and the changing role of the governments.
• Technological Environment
One of the most dramatic forces shaping people’s lives is technology. Even new technology is a force for "creative destruction." New technologies that provide superior value in satisfying needs stimulate investment and economic activity. In the meantime minor innovations fill the gap. Minor innovations involve less risk but critics argue that too much research effort is going into producing minor improvements rather than major breakthroughs. New technology creates major long-run consequences that are not always foreseeable.
• Political / Legal Environment
Marketing decisions are strongly affected by the developments in the political and legal environment. This environment comprises of the laws, government agencies and pressure groups that influence and limit various organisations and individuals.
• Social / Cultural Environment
The society in which people grow shapes their beliefs, values and norms. People absorb, almost...