Macro and Micro Environmental Factors in Marketing

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Marketing assignment 2 Introduction The individual report covers the aspects of macro and micro environmental factors which will influence decision making and strategic choices available to Cadbury. Recommendations are given in segmentation criteria, targeting strategy as well as proposing new positioning for their new product. It will also show how buying behaviour affects marketing activities in different buying situations. There are two types of environment that a company must understand in order for it to take advantage of the changing market activities and target its market successfully. They are Micro and Macro environmental factors: The Micro environment factors have a direct impact on the firm and its activities in relation to a particular market in which to operates, and also any internal aspects of the organisation which influence the development of a marketing strategy. The micro environment includes the company's suppliers, customers, marketing intermediaries, interest groups and competitors. The macro environment covers broad trends and patterns in society as whole which may affect all markets, but will be more relevant to some than others. 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. Riley (2010) p87-92 The Micro environment includes 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 factors: • There are five environmental factors that influence the marketing decisions and activities i.e, Technology, Demographics, Government, Social and

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