THE MACRO ENVIRONMENT
By Izzah Azimah Binti Noh
The actors and forces outside marketing that affect
marketing management’s ability to build and maintain
successful relationships with target customers
The larger societal forces that affect:;
Demographic, Economic, Natural, Technological, Political
and Cultural forces or
TH E M A C RO E N V I RO N M E N T
Demographics is the study of populations in term of
size, density, location, age, race, sex, income, education and etc.
Changes in the world demographic environment have major
implication for business.
Marketers need to analyse on demographic factor is:
Change age structure
Geographic population shifts
1. CHANGE THE AGE
Baby boomers (Born between 1946-1964)
Most powerful forces shaping the marketing environment.
Rethinking the purpose and value of their work, responsibilities and
Reach their peak earning and spending years.
Constitute a lucrative market for marketers
Generation X ( born between 1965 and 1976)
Less materialistic than the other group.
More sceptical bunch.
Most educated generation to date
Posses hefty annual purchasing power
Generation Y/ Millennial ( born between 1977 and 2000)
Most financially strapped generation
Facing higher unemployment
Saddled with more debt
Utter fluency and comfort with digital technology
2. FAMILY STRUCTURES
The traditional household consist of husband, wife and children
The changes of family institution structures also consist of nontraditional household:
Married couples without children
Single living alone/ adults of one
Divorcing or separating
Not to marry
Marrying without attending to have children
Economic environment consist of economic factors that affect
consumer purchasing power spending patterns
Types of economic environment:
: constitute rich markets for many kinds of
Subsistence economies : consume most of their own agricultural
and industrial output and other few market
Developing economies : offer outstanding marketing opportunities
for the right kind of products
The physical environment and the natural resources that are
needed as inputs by marketers or that are affected by marketing
Unexpected happenings in the physical environment (weather to
Involves growing shortages of raw materials
Government intervention in natural resources management
Technological forces include the impact that new technology can
have on a firm.
POLITICAL AND SOCIAL
Consist of laws, government agencies and pressure groups that
influence or limit various organizations and individuals in a given
Reason of legislation regulating business:
To protect company from each other
To protect consumer from unfair business practices
To protect interest of society against unrestrained behaviour
Social responsible actions:
Socially responsible behaviour
- Do the right thing from the behaviour of manager to the
workers in the company.
- To exercise their social responsibility and build more
positive images, many companies are now linking
themselves to worthwhile causes.
Consist of institutions and other forces that affect a society’s basic
values, perceptions, preferences and behaviors.
The major cultural values of a society are expressed in people
Themselves : people vary in their emphasis on serving themselves
versus serving other.
: people’s attitudes towards and interactions with others
shift over time.
Organizations: people vary their attitudes towards coorperations,
government agencies, trade unions, universities and
: people vary their attitudes towards their societypatriots defend it, reformers want to change it and
malcontents want to leave it.
: people vary their attitudes towards nature.
: people vary their beliefs about of the universe and
their place in it.
RESPONDING TO THE
Those who make things happen:
Take aggressive actions to affect the publics and forces in
their marketing environment
Develop strategies to change the environment
Those who watch things happen:
Passively accept the marketing environment.
Do not try to change it.
Those who wonder what’s happened:
Confused to do an actions and failed to identify the problem
because of the environment changes