How Marketing Macro Environmental Factors Affect Business Strategy

Sun, 03/02/2014 - 11:01 -- Gulzar Ahmed

Marketing Environmental Factors

Companies get resources from the environment and supplies goods and services to the environment. There are different environmental factors that affect a business ability to serve its customers. These marketing environmental factors provide opportunities or threats to a particular business. Every company or organization tries to grasp the available opportunities and face the threats that emerge from the environmental forces. The term “business” actually applied to those economic activities whose primary purpose is to provide goods and services for society in an effective manner. Now there are two types of forces which affect an organization to serve its customers.

  1. Micro-Environment
  2. Macro-Environment

What is Macro Environment

In this post I would discuss the Macro environmental factors which consist of external forces. These external factors influence the company marketing strategy in a great length. The external environment forces are uncontrollable and company finds it hard to tackle with the external factors. The company should to be flexible to adopt the rapid changes in technology, government regulations, and competition in the external microenvironment. Both micro and macro environment plays vital role in marketing strategies of a company. So all successful companies take these environmental constraints into consideration while formulation, implementation and evaluation of marketing strategy.

Macro Environment Definition

All the external factors which are uncontrollable and influence the business strategies and decision making process.

How Macroenvironment Factors Affect Business Strategy

Macro-environment consists of demographic environment, economic environment, natural factors, technological factors, political factors and cultural factors. Let discuss each in detail how they affect business strategy.

  1. Demographic Environment
  2. Economic environment
  3. Natural Forces
  4. Technological Forces
  5. Political Forces
  6. Social & Cultural Forces

Demographic Factors

Demographic environment refers to studying human population in terms of size, density, location, age, gender, race and occupation. This is the very important factor that helps the marketer to divide the population into different market segments and target markets. Demographic data also helps in preparing geographical marketing plans, age and sex wise plans.  Marketers divide the world population into three parts:

Baby Boomers:   WWII-1960’s

Generation X:     1965-1975


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