Marketing macroenvironment, Marketing Management

Assignment Help:

Macro environment: macro environment refers to those factors, which are not concerned to the immediate environment. These factors are external to the company and are quite uncomfortable. These factors do not affect the marketing ability of the concern directly but indirectly they influence marketing decisions of the company. The following are the macro environment factors:

1.      Economic factors: The economic environments consist of macro level factors related to the means of the production and distribution of wealth that have an ionomimpact on the business of an organization. Some of the important factors and influences operating in the economic environment are:

1.      The economic stages existing at a given time in a country.

2.      The economic structure adopted, such as capitalistic, socialistic, or mixed economy.

3.      Economic planning such as five year plans, annual budgets etc.

4.      Economic policies such as monetary, industrial and fiscal policies.                

5.       Economies indices like national income, disturb of income, rate of grow per GNP, per capita income disposable personal income, rate of the savings and investments, value of exports and imports, the balance of payments etc.

6.       Infrastructural factors such as financial institutions, banks, modes of transportation, communication facilities, energy sources etc.

2. Technological environment: the Technological environment consists of those factors related to knowledge applied, and the materials and machines used in the production of goods and services that have an impact on the business of an organization. Some of the important factors and influences operating in the Technological environment are as follows: sources of the technology like company sources, external sources and foreign sources, cost of technology acquisition collaboration in, and transfer of the technology. Technological environment stages of development, change and rate of change of technology and research and development. Impact of technology on human beings, the non machine system, and the environment effects of the technology. Communication and the technology.

3. Legal factors: The legal factor consists of factors related to planning promotion and regulation of economic activities by the government that have an impact on the business of an organization. Some of the important factors and influences operating in the regularity environment are as follows:

1.       The constitutional framework directive principals, fundamental rights and division of legislative powers between central and state governments.

2.       Policies related to imports.

3.       Policies related to the public sector, small scale industries, sick industries, development of backward areas, control of environment pollution and consumer protection.

4.       Policies related to licensing, monopolies, foreign investment and financing of industries.

5.       Policies related to imports and exports.    

Since the Indian economy of centrally planned and controlled, the principle of regulation of economic activities by public authorities in the larger interests has taken roots. Business and industry operate within a legal environment. The relationship between industry and the legal environment exists as a two way process. The government lays down the policies, procedures and rules according to which the industry functions. There are a number of administrative controls over business that are exercised through the regulatory mechanism. Some of the important areas of control are:

1.       industrial policy and licensing

2.       monopolies and restrictive trade practises

3.       control over development and regulation of industries

4.       import and export control, and control over foreign exchange

5.       legislation related to company operations

6.       control of environment pollution

7.       control over foreign investment and collaboration

8.       control over foreign distribution and pricing of commodities

9.       control through consumer protection 

4Political factors: the significance of political conditions in strategic planning may be explained in terms of the predictability of business activities under stable political conditions and conversely by reference to the impact of political unrest and threats to law and order. Rubock has developed a conceptual framework for identifying and assessing political risks, which may affect business decisions. The sources of such risks may be competing political ideologies, vested interests in local business groups, electron majority of the party in power, infernal dissensions within the ruling party, insurgencies in border areas, international power alignments and alliances, foreign economic policies of governments abroad, strength of the parliamentary opposition parties, etc. obviously, political factors may have international, National as well as Regional implications. Political processes that improved relations between the United States and China in mid 70 results in the operations. In India the Ajodhya Babri Masgid episode brought in its wake, violet riots in different parts of the country and caused serious law and order problems during December 92 and January 93. Apart from of instability, the event disrupted transport, slowed down growth of exports and industrial production as well as reduced Government revenues. Besides, many potential foreign investors were reported to have deferred their decisions or revised their plans.

5. Social factors: another environment aggregate that exerts a significant influence on formal organizations is the social system. Managers must be mindful of end responsive to the environmental forces of the social system. Uneven distribution of resources of different sectors of the society harbours the seeds of the conflict between the organization and the various groups that compose society. The part of the population that is relatively affluent and well educated demands more than that an economic livelihood and those emerging from deprivation and disadvantage will make their social demands felt through my raid pressures.

6. Demographic factors: corporate planners should study the demographic environment and identify the broad characteristics of the population that affect the organization, an affect alert management will have plenty of advance notice of the potential changes in the demographic environment relevant to business organizations are trends in size, ageing geographical shift and literacy of population. Growth in population has significance for the government as well as for business organizations, A growing population means increasing human needs, which, in turn, results in the expansion of the product markets, if there is sufficient purchasing power. Where growth size of population exceeds the availability of food supply and resources, there will be rise in costs, which will, in turn, depress profit margins of business man.

Related Discussions:- Marketing macroenvironment

What is negative communication, What is Negative communications Numbe...

What is Negative communications Number of people affected by a dissatisfied consumer, and thus negative marketing communication messages, is limited. Implications of a poor p

What is strategic control in MIVE, What is strategic control in MIVE? ...

What is strategic control in MIVE? Strategic control: The balance of efficiency control is strategic control. This weighs the overall and long-term marketing plan in visi

Identify and illustrate five trends for travel demand, Question: (i) ...

Question: (i) Identify and illustrate five trends for travel demand. (ii) Show how these trends would have an impact on the supply of air travel, assuming that there is a

Calculus, a) Use the simplified difference quotient method to find g''(x) f...

a) Use the simplified difference quotient method to find g''(x) for g(x)= (2)/(1+2x) b) Determine an equation for the tangent line to the graph of g in part a) at x=0 c) Give th

New products development process, New products development process: Id...

New products development process: Idea generation: the development of the new product starts with a generation of new ideas. There may be a number of sources of the ideas gen

Marketing channels, if a consumer buys an item through a catalog over the p...

if a consumer buys an item through a catalog over the phone with a credit card, is the credit card a channel member?

Pricing, how can we calculate pricing

how can we calculate pricing

Need answers, Quantitative Techniques Q4. Find elasticity of demand of the...

Quantitative Techniques Q4. Find elasticity of demand of the function x=150-5P at (1) P=15, (2) P=20. (5 marks) Q5. Find dy/dx of the following cases 1. y=x2 log x. 2. log x /x. (

Distribution, i want to know the type of distribution strategy that a compa...

i want to know the type of distribution strategy that a company specialising in major appliance like refridgeration and washing machines can use?

Write Your Message!

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd