Macro Environment of Marketing
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Macro Environment
For any decision there is n number of factors which influences the decision. Be it a decision related
to any organisation, any business concern or even an individual. Thus it is per se very much
necessary to understand the influence of each parameter. The factors which influence a decision are
also termed as its environment. The environment can be Internal, can be controlled by the
organisation; Micro, specific to the industry and is different for different industries; and lastly Macro,
generic in nature and impacts the whole business environment.
The Macro Environment includes all the factors which are external to the firm and which cannot be
controlled by the organisation. And also they are not specific to any industry but influence all the
firms but the influence may be at different level. As a Marketing manager, on musty have knowledge
of different factors which influences the marketing decision of a firm, And also since they are not
controllable, one must adjust the decisions as per the changes in the environment.
The Important factors comprising the Macro Environment of Marketing are Demographic, Economic, Socio-Cultural, Natural, Technological and Political-Legal. Influence of each factor shall be discussed in detail in the following parameters.
DEMOGRAPHIC ENVIRONMENT
Demographic, as the name signifies is related to population and population mix. It is people who
make market. It is they who contribute to demand and also it is manpower which helps in produce
and supply. Thus as a marketer, on must understand the demographics on the nation and also due
to globalisation, global population also influences the decisions.
Population Growth:
India is being ranked second in terms of population after China. The population as per Census
estimates as in July 2009, were 1.17 Billion with growth rate of 1.58%. This provides an exceptional
opportunity for business. The high population growth has attracted many FMCG firms and retailers
in countries like China and India whose markets are yet unexplored.
Population Mix:
Not only the Growth but also the composition of population is important. For instance in country like
Japan, where major proportion of population is aged has attracted Pharma firms. And similarly In
India where population is composed of Youths has made the firms to position themselves as pro-
Youth, like MTV, Adidas, Coke etc
Household pattern:
The household pattern, like Large Families, small families or nuclear families, also influence the
marketing decision. In rural areas of India where still the trend of large and joint families is pertinent,
the purchasing decision is influenced by most of the family members and in case of urban India
where Nuclear families are in trend, the decision is taken by a single user.
Geographical Shift:
In country like India, where a language changes every 100 miles, a culture changes every 10 miles,
the marketer must have knowledge of the culture and language of the region to position its product
in better way.
ECONOMIC ENVIRONMENT
As we know demand is defined as Desire for a product backed by willingness and ability to pay. Thus
it is not only the people but also their ability to buy a product is vital for a marketer. Ability to pay
can be measured in terms of Income distribution, economic condition of the nation, Credit
availability.
India being an emerging economy with a GDP of $1.22 Trillion and Percapita Income of $2932 (PPP Terms) has lots of potential for the markets. This also impacts the general economic conditions of the economy. The availability if Infrastructure, the business development, the policies etc
The Distribution of Income is also one of the important parameters that shall be considered. A high unequality in distribution will lead to limited potential as the market is widely controlled by