The document discusses the macro environment factors that affect business operations. It defines the macro environment as the external factors outside a company's control that influence its operations. The key macro environment factors discussed are demographic forces relating to population characteristics, economic forces concerning spending power and patterns, natural forces involving natural resources and environmental impact, technological forces regarding production technology, political forces such as government regulations, and social/cultural forces like lifestyle trends and customs. Analyzing these macro environment factors is important for marketers to understand market changes and adapt their strategies accordingly.

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Macro Environment

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What is Macro Environment ?
Macro environment is basically referred to the area of
external business operations of a particular
organization. The components of a macro environment
have to be well analyzed before planning the course of
marketing programmes as it affects the very
performance of a product or an organization. All the
factors affecting the performance of a firm in the
macro environment are referred to as the components
which could be………

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Demographic Forces
Demographic forces relate to people. This includes size,
density, age, gender, occupation and other statistics.
Why are people important?
Because, on the whole, their needs is the reason for
businesses to exist. In other words, people are the driving
force for the development of markets. The large and
diverse demographics both offer opportunities but also
challenges for businesses. Especially in times of rapid
world population growth, and overall demographic
changes, the study of people is crucial for marketers.

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The reason is that changing demographics mean changing
markets. Further, changing markets mean a need for
adjusted marketing strategies.
Therefore, marketers should keep a close eye on
demographics. This may include all kinds of characteristics
of the population, such as size, growth, density, age- and
gender structure, and so on.

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Economic Forces
The Economic forces relate to factors that affect consumer
purchasing power and spending patterns. For instance, a
company should never start exporting to a country before
having examined how much people will be able to spend.
Important criteria are: GDP, GDP real growth rate, GNI,
Import Duty rate and sales tax/ VAT, Unemployment,
Inflation, Disposable personal income, and Spending
patterns.

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Natural Forces
The natural environment consist of many amenities that
attract tourists, such as conserve natural habitats, resources,
endangered species, minimize environmental impact,
recycling, energy efficient products and clean air.
The natural environment involves natural resources needed
as inputs by marketers or that are affected by marketing
activities.

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Technological 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.
The marketers must watch the technological
environment closely and adapt in order to keep up.
Otherwise, the products will soon be outdated, and the
company will miss new product and market
opportunities.

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Political Forces
Political factors are those factors that business has to
be more careful and influence the business more than
other factors. Political factors means how and in which
manner and in what degree a government interfere in
business. Political factors includes government
regulation and legal issue and both formal and informal
rules under which business has to operate its work.
Some examples of political factors:
 Stable political environment
 Tax and labor policy of government
 Government's economic policy
 Involvement of government in different trading
agreement

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Social / Cultural Forces
Social factors are related with the society. How the
society behaves and thinks about any things. Firm has to
do its business than it must have to give more important
or focus on social factors. Business cannot exist without
society because it is a part of it. Social factors are very
from country to country, it depends upon following
region, thinking of people etc. Social factors includes
 Lifestyle of people
 Demographics
 Fashion
 Trends
 Religious factors
 Population growth rate

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Conclusion
Micro and macro environments have a significant
impact on the success of marketing campaigns, and
therefore the factors of these environments should be
considered in-depth during the decision making
process of a strategic marketer.
The company is surrounded by a complex
environment. The Macro Environment consists of a
large variety of different forces. All of these may shape
opportunities for the company, but could also pose
threats. Therefore, it is of critical importance that
marketers understand and have an eye on
development in the Macro Environment, to make their
business grow in the long term.

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Thank You…!