macroenvironment

1. Macro Environment
By:- Rahul .R. Meena
Roll No:-PM/2012/406

2. Marketing comes in a wide variety of
flavors based on audience, media
platform and business in today’s
evolving and dynamic marketplace.

3. The marketing environment includes the actors and
forces outside marketing that affect marketing
management’s ability to build and maintain
successful relationships with target customers.

4. The Macroenvironment :-
The company and all of the other actors operate in a larger
environment of forces that shape opportunities and pose
threats to the company.
FORCES IN MACRO ENVIRONMENT

5. Demographic environment
Demography is the study of human populations in terms of
size, density, location, age, gender, race, occupation, and other
statistics.
Demographic environment is important because it involves people, and
people make up markets.
Demographic trends include age, family structure, geographic
population shifts, educational characteristics, and population diversity

6. • Changing age structure of the population
– Baby boomers include people born between 1946
and 1964
– Most affluent Americans

7. • Generation X includes people born between
1965 and 1976
– High parental divorce rates
– Cautious economic outlook
– Less materialistic
– Family comes first
– Lag behind on retirement savings

8. • Millennials (gen Y or echo boomers) include
those born between 1977 and 2000
– Comfortable with technology
– Includes:
• Tweens (ages 8–12)
• Teens (13–19)
• Young adults (20’s)

9. Changing Age Structure
Population is getting older
Changing Family Structure
Marrying later, fewer children,
working women, and nonfamily households
Geographic Shifts
Moving to the Sunbelt and suburbs (MSA’s)
Increased Education
Key Demographic Trends Increased college attendance
and white-collar workers
Growing Ethnic and Racial Diversity
72% Caucasian, 13% African-American,
11% Hispanic & 3% Asian

10. Economic environment
consists of factors that affect consumer purchasing
power and spending patterns
Factors influencing consumer buying power and strategies (stage of
the business cycle, inflation, unemployment, resources, income
etc)

11. Global Economic
Development
Key
Changes in Income Economic
Concerns for
Marketers
Changing Consumer
Spending Patterns

12.  Inflation and Deflation
 Inflation: The devaluation of money by
reducing what it can buy through continued
price increases.
 Deflation: Falling prices of commodities.

13. • Unemployment
– The proportion of people in the economy
who do not have jobs and are actively
looking for work.

14. • Income
– Discretionary income: the amount of money
people have to spend after paying bills and
necessities.
• Resource Availability
– Demarketing: reducing consumer demand for a
good or service to a level that the firm can supply.

15. Changes in Consumer Spending Patterns
• Ernst Engel—Engel’s Law
• As income rises:
– The percentage spent on food declines
– The percentage spent on housing remains
constant
– The percentage spent on savings increases

16. NATURAL ENVIRONMENT
• Natural environment involves the natural
resources that are needed as inputs by marketers
or that are affected by marketing activities -
water, forests, oil, coal, minerals
•
• Raw material shortages
• Increase in energy cost
• Increase pollution levels
• Increase in Governmental intervention in natural
resource management

17. • As resources become more scarce, costs
increases.
• Changes in response to environment: -
• biodegradable packs, charges for
packets, Wellness Warehouse, PET bottle .

18. Responding to the Marketing
Environment
• React and • Aggressive • Watching and
adapt to actions to reacting to
forces in the affect forces forces in the
environment in the environment
environment