Relationship between micro market and macro environmental factors

Difference between Micro and Macro Environment

relationship between micro market and macro environmental factors

The primary difference between micro and macro environment is that Its elements include suppliers, competitors, marketing intermediaries. called micro-economic factors (Mussnig , 41) and from the outside point of view is divided into four segments of external markets: The “Development . that the organization of a company has to adapt and link its own strategy on the one. There are two kinds of external marketing environments; micro and macro. These environments' factors are beyond the control of marketers but.

  • siobhan c. scott
  • Market environment
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A macro environment consist of forces that affect the economy as a whole not just specific segments of it. Demographics are the study of population, location, density, size, age, gender, race, age and occupation. Demographics are important because people are the market consumers.

Knowing what demographic you are selling a product or service to, allows a company to forecast sales, create market demand, make sure enough product is in production and tailor their product to a specific market segment.

relationship between micro market and macro environmental factors

While the natural environment is impacted by natural disasters, weather and unexpected natural events. Natural events can greatly impact growth, production, distribution and purchasing of a product or service. Technological forces come in several different forms.

relationship between micro market and macro environmental factors

Technology is vital to most of the business world. Technology allows companies to know exactly how much of a product they have in a warehouse, in transit or on the shelves in stores due to bar codes that can be scanned at each point.

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Technology is works in many ways such as communication, tracking and marketing to name a few. The political environment influences marketing through government agencies, laws and groups.

relationship between micro market and macro environmental factors

The disabled people also form the potential future market. The economic factor of the macro environment includes those that influence the purchasing power of customers along with their spending patterns. Certain important trends of the economic environment in the USA are as follows. Now customers become more careful shoppers. Moreover the unfair distribution of income is resulted in the formation of two kinds of classes of the people which are affluent and less affluent.

So they should carefully monitor the altering trends of the economic system in order to prevent their organizations from the side effects of the changing trends. The natural force of the macro environment consists of the natural resources that are required by the organizations as inputs or that is influenced by the marketing activities.

The trends of the natural environment are becoming quite important since few years like The industrial expansion has seriously affected the raw materials by creating their shortage. Moreover, certain nonrenewable inputs are depleting due to their improper usage like oil, coal etc. How does their price and product differentiation impact you? How can you leverage this to reap better results and get ahead of them?

Difference between Micro and Macro Environment

Your organisation has a duty to satisfy the public. Any actions of your company must be considered from the angle of the general public and how they are affected. The public have the power to help you reach your goals; just as they can also prevent you from achieving them. Macro Environment Factors Demographic forces: The skills and knowledge applied to the production, and the technology and materials needed for production of products and services can also impact the smooth running of the business and must be considered.