Macro Environment of Marketing

Macro Environment

http://www.scribd.com/doc/29399750/Macro-Environment-of-Marketing

For any decision there is n number of factors which influences the decision. Be it a decision related

to any organisation, any business concern or even an individual. Thus it is per se very much

necessary to understand the influence of each parameter. The factors which influence a decision are

also termed as its environment. The environment can be Internal, can be controlled by the

organisation; Micro, specific to the industry and is different for different industries; and lastly Macro,

generic in nature and impacts the whole business environment.

The Macro Environment includes all the factors which are external to the firm and which cannot be

controlled by the organisation. And also they are not specific to any industry but influence all the

firms but the influence may be at different level. As a Marketing manager, on musty have knowledge

of different factors which influences the marketing decision of a firm, And also since they are not

controllable, one must adjust the decisions as per the changes in the environment.

The Important factors comprising the Macro Environment of Marketing are Demographic, Economic, Socio-Cultural, Natural, Technological and Political-Legal. Influence of each factor shall be discussed in detail in the following parameters.

DEMOGRAPHIC ENVIRONMENT

Demographic, as the name signifies is related to population and population mix. It is people who

make market. It is they who contribute to demand and also it is manpower which helps in produce

and supply. Thus as a marketer, on must understand the demographics on the nation and also due

to globalisation, global population also influences the decisions.

Population Growth:

India is being ranked second in terms of population after China. The population as per Census

estimates as in July 2009, were 1.17 Billion with growth rate of 1.58%. This provides an exceptional

opportunity for business. The high population growth has attracted many FMCG firms and retailers

in countries like China and India whose markets are yet unexplored.

Population Mix:

Not only the Growth but also the composition of population is important. For instance in country like

Japan, where major proportion of population is aged has attracted Pharma firms. And similarly In

India where population is composed of Youths has made the firms to position themselves as pro-

Youth, like MTV, Adidas, Coke etc...

Household pattern:

The household pattern, like Large Families, small families or nuclear families, also influence the

marketing decision. In rural areas of India where still the trend of large and joint families is pertinent,

the purchasing decision is influenced by most of the family members and in case of urban India

where Nuclear families are in trend, the decision is taken by a single user.

Geographical Shift:

In country like India, where a language changes every 100 miles, a culture changes every 10 miles,

the marketer must have knowledge of the culture and language of the region to position its product

in better way.

ECONOMIC ENVIRONMENT

As we know demand is defined as Desire for a product backed by willingness and ability to pay. Thus

it is not only the people but also their ability to buy a product is vital for a marketer. Ability to pay

can be measured in terms of Income distribution, economic condition of the nation, Credit

availability.

India being an emerging economy with a GDP of $1.22 Trillion and Percapita Income of $2932 (PPP Terms) has lots of potential for the markets. This also impacts the general economic conditions of the economy. The availability if Infrastructure, the business development, the policies etc...

The Distribution of Income is also one of the important parameters that shall be considered. A high unequality in distribution will lead to limited potential as the market is widely controlled by