Macro and Micro Environment Effect Marketing

Environments And Their Influence On Marketing

Basically, there are three type of Environment Macro, Micro, Internal. This environment directly or indirectly affect the activity of marketing, Organization can control some of environment and some are not.

Macro Environment

1. Political Environment : Government regulation affecting marketing by regulation of pricing, tax policy, trade, tariffs, and political stability. Government also control influence on the health, education, and infrastructure of nation

Example: Indian government control on ads of tobacco, and Band on TV ads of smoke

2. Economical Environment: When time are good, sales also good, But, when time are bed, need to focus on marketing strategies and promotions. Economical condition of nation determining how much expendable income your consumer base has to spend and how much fear they may have about spending it. There are others factor like, economic growth, interest rates, exchange rates and inflation rate.

3. Social Environment: Social and cultural factor are important to consider while making and implementing  marketing strategy of product. it includes culture, awareness, health conscious, population growth rate, age.

4. Technological Environment: R&D activity, rate of technology change, automation, how fast accept technology, technology sift cost, innovation.

Example: Internet marketing growing very fast.

Micro Environment:

1. Customer: Marketing plan should aim to attract and retain customers through products that meets  "needs and wants" of customers.

2. Suppliers: Suppliers provide businesses by providing raw material.  for example, an increase in raw material price will affect an organisation's Marketing Mix strategy and may even force increase price. Close supplier relationship are effective way to remain competitive and secure quality products.

3. Competitors: Can the organization offer benefits that are better than those offered by competitors? Does the business have unique selling point (USP)? Competitor analysis and monitoring is important to maintain, improve position within the market.

4. Shareholders: Company need investment to grow. shareholders want to return from the money which they invested. shareholder pressure to increase profits. This pressure accept organisational strategy.  

5. Employees: Employing staff with relevant skills and experience in essential. Training and development play a critical role i achieving a competitive edge. If employs staff with motivation, skills or experience it will affect customer service and ultimately sales.