Definition of macro-environment
Larger societal forces that affect the micro-environment.
Examples of macro-environment in the following topics:
- All organizations should continuously appraise their situation and adjust their strategy to adapt to the environment.
- One technique used by organizations to monitor the environment is known as environmental scanning.
- It allows marketers to understand the current state of the environment, so that the organization can predict trends.
- The Macro Environment There are a number of common approaches for how the external factors, which describe the macro environment, can be identified and examined.
- The segmentation of the macro environment according to the six presented factors of the PESTEL analysis is the starting point of the global environmental analysis.
- Environmental scanning is one technique used by organizations to monitor the environment.
- It is important to place equal emphasis on both the macro and micro-environment and to react accordingly to changes within them.
- The Marketing Environment Two key levels of the marketing environment are the micro-environment and the macro-environment.
- The Micro-environment The micro-environment includes the company itself, its suppliers, marketing intermediaries, customer markets, and competitors.
- The company aspect of micro-environment refers to the internal environment of the company.
- The Macro-environment The macro-environment includes concepts such as demography, economy, natural forces, technology, politics, and culture.
- Since the business environment is constantly changing and customer preferences keep evolving, marketers are required to adapt rapidly.
- Develop the content; describe the product or services and special features Develop a marketing budget that includes advertising and promotional planning Describe the business-its location any advantages or disadvantages, the staffing Develop a pricing strategy Forecast the financial future Define the market segment Define the competition Main Sections of the Marketing Plan Executive Summary Situational Analysis - the current situation - the macro-environment - the Economy, legal, technological, ecological, socio-cultural and supply chain oriented, market analysis, market definition including segmentation and size, industry structure, strategic groupings, competition strengths and weaknesses and their market share, a Porter 5 Force Analysis, a consumer analysis, the nature of the buying decision, staffing, demographics, psychographics, buyer motivation and expectations, loyalty segments and company resources.
- Managers use it to analyze the internal and external environment of an organization and the firm’s own capabilities, customers, and business environment.
- The situation analysis consists of several methods of analysis: The 5Cs, SWOT and Porter's five forces analyses. 5C Analysis A situation analysis is often referred to as a "3C analysis", but when extended to a 5C analysis it allows businesses to gain more information about the internal, macro and micro-environmental factors within the environment.
- The 5C analysis is considered the most useful, comprehensive and common way to analyze the market environment.
- Some companies conduct a PEST analysis which scans the external macro-environment in which the company operates.
- The types of climate that firms have to analyze are the: Political and regulatory environment Economic environment Social and cultural environment Technological environmentLegislative environment SWOT Analysis A SWOT analysis is another method under the situation analysis that examines the Strengths and Weaknesses of a company (internal environment) as well as the Opportunities and Threats within the market (external environment) .
- Managers can use various methods of analysis to understand the firm’s own capabilities, customers, and business environment.
- The Micro Environment and Trends The micro environment refers to the forces that are close to the company and affect its ability to serve its customers.
- The technological environment is perhaps one of the fastest changing factors in the macro environment.
- This includes technological developments in areas ranging from antibiotics and medicine, to nuclear and chemical weaponry, and credit cards.How the Micro Environment Applies to OrganizationsThe corporate aspect of the micro environment refers to the internal environment of a company.
- The suppliers of a company are also an important aspect of the micro environment.