Micro and Macro Enviornement

3061 Words13 Pages
Micro and macro environments essay INTRODUCTION: This assignment has two parts. In the first part we will look at the marketing environment, both the micro and macro environments. In the second part we discuss how the marketing mix is used by the strategist to gain competitive advantage in its chosen sector. TYPES OF ENVIRONMENT: Companies interact with two types of environment: the ‘microenvironment' and the ‘macro environment'. The microenvironment comprises the company's suppliers, customers, marketing intermediaries and competitors. The macro environment is made up of wider forces which affect demand for a company's goods. These forces include demographics, economics, nature, technology, politics and culture. THE MICROENVIRONMENT: The microenvironment consists of five major factors: The marketer's ‘internal environment' (i.e. its own management structure). The ‘marketing channel' used by the firm (for example, its suppliers). The markets in which the firm may be selling (these may be consumer, producer, reseller, government or international markets). THE MACRO ENVIRONMENT: There are five environmental factors that influence the marketing decisions and activities i.e, Technology, Demographics, Government, Social and Economic. SOCIAL CULTURAL FACTORS: The social and cultural influences on business vary from country to country. It is very important that such factors are considered, these factors include: What is the dominant religion? What are attitudes to foreign products and services? Does language impact upon the diffusion of products onto markets? How much time do consumers have for leisure? What are the roles of men and women within society? DEMOGRAPHICS: The demographic environment itself is affected by changes in the mix of age groups in the population. If the population becomes older, this will lead to rising demand for

More about Micro and Macro Enviornement

Open Document