Macro EnvironmentBy:- Rahul .R. MeenaRoll No:-PM/2012/406

Marketing comes in a wide variety of flavors based on audience, media platform and business in today’s evolving and dynamic marketplace.

The marketing environment includes the actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers.

FORCES IN MACRO ENVIRONMENT

The Macroenvironment :-

The company and all of the other actors operate in a larger environment of forces that shape opportunities and pose threats to the company.

Demography is the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics.

Demographic environment is important because it involves people, and people make up markets.

Demographic trends include age, family structure, geographic population shifts, educational characteristics, and population diversity

Demographic environment

• Changing age structure of the population– Baby boomers include people born between 1946

and 1964– Most affluent Americans

• Generation X includes people born between 1965 and 1976– High parental divorce rates– Cautious economic outlook– Less materialistic– Family comes first– Lag behind on retirement savings

• Millennials (gen Y or echo boomers) include those born between 1977 and 2000– Comfortable with technology– Includes:• Tweens (ages 8–12)• Teens (13–19)• Young adults (20’s)

Key Demographic Trends

Changing Age StructurePopulation is getting older

Changing Age StructurePopulation is getting older

Changing Family StructureMarrying later, fewer children,

working women, and nonfamily households

Changing Family StructureMarrying later, fewer children,

working women, and nonfamily households

Geographic ShiftsMoving to the Sunbelt and suburbs (MSA’s)

Geographic ShiftsMoving to the Sunbelt and suburbs (MSA’s)

Increased EducationIncreased college attendance

and white-collar workers

Increased EducationIncreased college attendance

and white-collar workers

Growing Ethnic and Racial Diversity72% Caucasian, 13% African-American,

11% Hispanic & 3% Asian

Growing Ethnic and Racial Diversity72% Caucasian, 13% African-American,

11% Hispanic & 3% Asian

Factors influencing consumer buying power and strategies (stage of the business cycle, inflation, unemployment, resources, income

etc)

Economic environment

consists of factors that affect consumer purchasing power and spending patterns

Global EconomicDevelopment

Global EconomicDevelopment

Changes in IncomeChanges in Income

Changing ConsumerSpending Patterns

Changing ConsumerSpending Patterns

KeyEconomic

Concerns forMarketers

KeyEconomic

Concerns forMarketers

Inflation and Deflation

Inflation: The devaluation of money by reducing what it can buy through continued price increases.

Deflation: Falling prices of commodities.

• Unemployment– The proportion of people in the economy

who do not have jobs and are actively looking for work.

• Income– Discretionary income: the amount of money

people have to spend after paying bills and necessities.

• Resource Availability– Demarketing: reducing consumer demand for a

good or service to a level that the firm can supply.

Changes in Consumer Spending Patterns

• Ernst Engel—Engel’s Law• As income rises:– The percentage spent on food declines– The percentage spent on housing remains

constant– The percentage spent on savings increases

NATURAL ENVIRONMENT

• Natural environment involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities -water, forests, oil, coal, minerals

• • Raw material shortages• Increase in energy cost • Increase pollution levels• Increase in Governmental intervention in natural

resource management

• As resources become more scarce, costs increases.

• Changes in response to environment: -• biodegradable packs, charges for packets,

Wellness Warehouse, PET bottle .

Responding to the Marketing Environment

•React and adapt to forces in the environment

•Aggressive actions to affect forces in the environment

•Watching and reacting to forces in the environment