WHAT ARE SOME INFLUENTIAL MACROENVIRONMENT DEVELOPMENTS ?

A macro environment is a wide, broad set of economic conditions rather than the conditions in a specific sector or industry within an economy.

MACROENVIRONMENT

FAD

UNPREDICTABLE, SHORT-LIVED, AND WITHOUT SOCIAL, ECONOMIC, AND POLITICAL SIGNIFICANCE

TRENDSIMILAR TO FAD BUT MORE DURABLE

EXAMPLE– McDonalds HAS STARTED

DISPLAYING NUTRITION INFO ABOUT PRODUCTS DUE

TO INCREASING TREND TOWARDS HEALTH AWARENESS.

MAJOR FORCES

DEMOGRAPHIC ENVIRONMENT

DEMOGRAPHIC DEVELOPMENT OFTEN MOVE AT A

FAIRLY PREDICTABLE PACE.

MARKETERS MONITOR— POPULATION, AGE

DISTRIBUTION, ETHNIC MIX, EDUCATIONAL

LEVELS, ETC..

DEMOGRAPHIC ENVIRONMENT

POPULATION AGE MIX

MEXICO HAS A VERY YOUNG POPULATION AND RAPID GROWTH

ITALY HAS ONE OF THE WORLD’S OLDEST POPULATION

MORE IMPORTANT

DEMOGRAPHIC ENVIRONMENT

ETHNIC AND OTHER MARKETS

80.5%

13.4%

1.9%

2.31%

DEMOGRAPHIC ENVIRONMENT

EDUCATIONAL GROUPS

ILLITERATES

HIGH SCHOOL DROPOUTS

HIGH SCHOOLDIPLOMAS

COLLEGE DEGREES

PROFESSIONALDEGREES

DEMOGRAPHIC ENVIRONMENT

HOUSEHOLD PATTERNS

JOINT FAMILIES

NUCLEAR FAMILIES

SERIOUS IMPLICATIONS FOR MARKETERS

ECONOMIC ENVIRONMENT

THE AVAILABLE PURCHASING POWER IN AN ECONOMY

DEPENDS ON:--

CURRENT INCOME, PRICES, SAVINGS, DEBT, &

CREDIT AVAILABILITY.

ECONOMIC ENVIRONMENT

CONSUMER PSYCHOLOGY

IN A RECESSIONARY ENVIRONMENT, CONSUMERS HUNT FOR BARGAINS…..

ECONOMIC ENVIRONMENT

INCOME DISTRIBUTION

MARKETERS DISTINGUISH COUNTRIES USING FIVE

INCOME-DISTRIBUTION PATTERS:-

1. VERY LOW INCOMES2. MOSTLY LOW INCOMES3. VERY LOW, VERY HIGH INCOMES4. LOW, MED., HIGH INCOMES5. MOSTLY MEDIUM INCOMES

SOCIOCULTURAL ENVIRONMENT

FROM THIS WE ABSORB A WORLD VIEW THAT DEFINES

OUR RELATIONSHIPS TO:--

OURSELVES, OTHERS, ORGANISATIONS,

SOCIETY, NATURE, & UNIVERSE.

SOCIOCULTURAL ENVIRONMENT

HIGH PERSISTENCE OF CORE CULTURAL VALUES

MARKETERS HAVE SOME CHANCE OF CHANGING SECONDARY VALUES, BUT NOT CORE.“DON’T DRINK AND DRIVE” CAMPAIGN HAS INFLUENCED SECONDARY VALUES OF PEOPLE.

SOCIOCULTURAL ENVIRONMENT

EXISTENCE OF SUBCULTURES

MARKETERS SAY, “ATTRACT SOMEONE AS TEEN, AND YOU WILL LIKELY TO KEEP THE PERSON AS CUSTOMER LATER IN LIFE.”

NATURAL ENVIRONMENT

IN COUNTRIES, PEOPLE HAVE PRESSED FOR PUBLIC

ACTION TO REDUCE INDS. POLLUTION

ENVIRONMENTAL REGULATIONS HIT CERTAIN

INDUSTRIES HARD…

NATURAL ENVIRONMENT

“DELHI GOVERNMENT’S INITIATIVE TO CONVERT ALL MODES OF PUBLIC TRANSPORT TO CNG-POWERED VEHICLES HELPED REDUCE POLLUTION LEVELS DRASTICALLY.”

TECHNOLOGICAL ENVIRONMENT

WHEN OLD INDUSTRIES IGNORE NEW TECHNOLOGIES,

THEIR BUSINESSES DECLINE.

TECHNOLOGICAL ENVIRONMENT

ACCELERATING PACE OF CHANGE

UNLIMITED OPPURTUNITIES FOR INNOVATION

VARYING R&D BUDGET

INCREASED REGULATION OF TECHNOLOGICAL CHANGE

POLITICAL-LEGAL ENVIRONMENT

IT CONSISTS OF LAWS, GOVERNMENT, AGENCIES, AND

PRESSURE GROUPS THAT INFLUENCE VARIOUS

ORGANISATIONS AND INDIVIDUALS.

POLITICAL-LEGAL ENVIRONMENT

INCREASE IN BUSINESS LEGISLATION

GROWTH OF SPECIAL-INTEREST GROUPS

These slides were created by NANDINI GUPTA, AKGEC Ghaziabad,during a Marketing internshipby Prof. Sameer Mathur, IIM Lucknow