Factors of macro environment

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1. ANALYSIS OF MACRO ENVIRONMENT BY M MANIVARDHAN REDDY 19091

2. MACRO ENVIRONMENT Macro environment is the remote environment of the firm, I . e the external environment in which it exists. As a rule this environment is not controllable by the firm, it is to huge and to unpredictable to control. Hence the success of the company, to a large extent will depend on the company’s ability to adapt and react to the changes in the macro environment. Primarily the company has to closely monitor the various elements of macro environment. This will help them understand the dynamic nature of the macro environment. It also helps them adapt to the constant changes in the environment.

3. Factors of macro environment

4. DEMOGRAPHIC FORCES It is related to the physical attributes of the population of the targeted region (size, age, gender, occupation, density), population growth rate, migration trends (inter-migration or intra-migration), changes in demographic structure, nature and characteristics of communities, among others. For example , if the region is dominated by matured and senior adults like that in a nation , marketers will never try to sell any youth-centric product over there. Instead, they will either think of some commodity that will appeal to the majority of the demography or move out from the place. At the same time, if the region is flooded with youths, the same heads will think of attracting the population towards their product.

5. political factors the most important of all external agents, political forces of a country is not just restricted to the government and its policies and laws. Even before thinking of any business, an organization always observes the political and legal situation of a nation. It is because the unstable government or political tensions will act as a barrier to implementing the marketing strategies.

6. Technological Forces Before investing in marketing activities, an organization must conduct a thorough research on the spread and use of technology in the targeted areas. They need to understand the technology penetration and user-technology interface of the region and accordingly make plans to use technology for their campaigns and communication. For example , if they find that almost every product used by the consumers is technology oriented, they can easily make technology a strong tool for their product like Titan Watches of the Tata Group has came in market after the downfall of hmt watches ltd .it was govt incorporated  It ruled Indian market for decades but it was not unable to adapt to the new technology at the the titan took the place

7. Natural FACTORS This includes the geographical location, the presence of ecology and biodiversity, temperature, weather and climate and predominant seasons. By having a concrete understanding of all these features, marketers will know where to sell what kind of products. For example , products like heaters and electric blankets will never be of any use to equatorial and tropical regions; although these are the highly populated zones in the world. Again, air conditioners or coolers will never appeal to the Western countries, living in the temperate zone. Therefore, before launching a product, successful companies study the environment and ecology of a place to know about the needs and demands of its inhabitants.

8. economic forces The economic conditions of the economy and the performance of a business have a very close relationship. A business depends on the economy for all its inputs and factors of production. It also sells its products and services in the same market. The economic environment consist of factors affecting consumers purchasing power and spending patterns both across and within their world markets.

9. Socio- cultural forces The social values and culture of an environment play a huge role in the functioning of the company. So when the social environment changes it can have a direct or indirect effect on the company. Social factors are related with the society. How the society behaves and thinks about any things. Firm has to do its business than it must have to give more important or focus on social factors. Like religious culture , fashion , belief .

10. Conclusion