The company and other actors operate in the larger macro environment which shapes opportunities as well as threats to the company.There are six major factors that play as actors in macro environment.
The study of the human population on the basis of size, density, location, age, gender, race, occupation, and other statics. As demography includes people and people make up the markets so it is a major interest to the marketers. The population growth rate is increasing day by day and it will now exceed from 6.1 billion to 8.1 billion by 2030. This increment in population is both opportunities and challenges in the world.
If the world demographic environment is changed then they have major implications for business. For example, A quarter century ago due to skyrocketing population, the Chinese government made the policy of limiting families to one child each. Also in Pakistan 14 years or younger has reached to 40 percent of total population, out of which almost 14 percent are older and younger.
The marketers keep close look towards the demographic trends and developments in their market, both at home and abroad. They track all demographic components like changing age and family structures, geographic population shifts, educational characteristics, and population diversity.
The factors that affect the consumer's purchasing power and spending patterns are economic environment. Marketers have to pay close attention to various trends and consumer spending patterns both across and within their world markets.
Natural environment is related to the natural resources that are needed as inputs by the marketers or that are affected by the marketing activities. Some parts of the world are rich in natural resources such as minerals, crude oil, or vegetation. For example, Arabian gulf has huge reservoirs of crude oil and some parts are rich in minerals in India. In various cities, the pollution levels have increased into dangerous levels. Renewable sources such as forest and food, water, soil etc should be used wisely whereas nonrenewable resources pose a serious problem
Environment sustainability has been practiced that create the world economy that planet can support indefinitely. For Example: In 2005, technologies ,GE launched its evolution series which cuts the consumption of the fuel by 5 percent and emission by 40 percent compared to locomotives built just a year earlier.
The technology creates great impacts in this changing world. The technology that is available in the world has changed the way people are communicating and doing business. Everyone gets affected due to the change in technological environment. The technological components like self – scanners, and video displays at stores, ATMs , Internet, and mobile phones are few examples that affect the business and consumers. Many consumers get information by reading news, using text messaging and shopping online. As a result, marketers have begun allocating more of their promotional budgets to online ads , mobile marketing.
The government regulations and political-legal environment must be understood by the organizations in which they do business. Different government policies and regulation have been established in order to protect both consumers and business. For example : The U.S. Food and Drug Administration (FDA) regulates the labeling of the products consumed such as food and medicine. As we have explained, when organizations conduct business in multiple markets, they must understand that regulations and policies differ across countries and across states.
Social and Cultural environment includes various social trends such as people's attitudes towards fitness and nutrition and demographic components like age , marital status , education, and occupation, and culture which relates to people's beliefs and values changing in the whole market. The trends of fitness, nutrition and health trends are affecting the offerings of the product by many firms. For example, PepsiCo produces water and vitamin drinks.
Both microenvironments and macro environment have great impacts on the success of marketing campaigns and therefore the factors of these environments. Considering these factors obviously improve the success of your organization’s marketing campaign and the reputation of the brand in the long term.
Kotler, P., & Armstrong, G. (2013). Principles of Marketing. Chennai: Pearson India Education Services Pvt Ltd.
http://www.saylor.org/site/textbooks/Principles of Marketing.pdf