Macro and Microecomics/Kodak

1431 Words6 Pages
A company’s Macro-environment consists of six forces that are generally out of the company’s control, however, these forces can either create an opportunity or present a threat to the company. The macro-environment forces are demographic, economic, natural, technological, political and cultural. Demographic forces give a consensus of the human population, or a part of the population, it’s size, density, location, age, gender, race, occupation and other statistics such as births, deaths, diseases, marriages and divorces. (Kotler, Armstrong, 2008, p. 68,69) This is extremely important to marketers when developing their marketing strategy and plan because it provides valuable tools they need to pinpoint their target market, as well as, give them insight about shifts in buying trends and income level shifts. An example of valuable demographic information is the current changing age structure of the population that started at the end of WWII, with the emergence of the “Baby Boomer” generation, 78 million people born in the US between 1947 and 1964, Gen-X, 49 million born between 1965 and 1976 and finally Gen-Y (echo boomers), 76 million born between 1977 and 1994. (Kotler, Armstrong, 2008, p.69, 70) Knowledge of economic forces and their effect on life as we know it and marketing strategies is paramount in today’s economy. Marketers analyze and anticipate current and future economic factors and trends, trends in geographic income growth and spending patterns, the current cost of living, interest rates, exchange rates and inflation rates and how they do or will affect potential purchasing power of the customer environment. Economic Forecasting is also a critical part of any analysis because it predicts or is an indicator of how or where the trends for profit are directed. (Kotler, Armstrong, 2008, p.78) An example of how economic forces affect
Open Document