2.1 show macro and micro environmental factors which influence marketing decisions
In differentiated marketing strategy there is a single marketing mix for different segments of the markets Kotler, Marketing Principle Assignment Help Delivery in day s:
If an industry lacks competition, you might not find enough demand to succeed in the long run. Shareholders and investors may help fund your company at start-up or as you look to grow.
IDENTIFY AND EXPLAIN MACRO AND MICRO ENVOIRMENTAL FACTORS WHICH INFLUENCE MAKRETING DECESIONS
Without funds to build and expand, you likely can't operate a business. You could look to creditors, but you have to repay loans with interest. By taking on investors, you share the risks of operating and often gain support and expertise. You do give up some control, though. Your local community and media also affect your ongoing business image. Communities often support companies that provide jobs, pay taxes and operate with social and environmental responsibility. If you don't do these things, you may run into negative public backlash.
A successful organisation will not only understand existing factors but also forecast change, so that it can take advantage of change within the environments in which it operates. The diagram below shows the 4 components of PEST Analysis; political, economical, social and technological.
The first element of a PEST analysis is a study of political factors. Political factors influence organisations in many ways. Political factors can create advantages and opportunities for organisations. Conversely they can place obligations and duties on organisations. Political factors include the following types of instrument:.
Non conformance with legislative obligations can lead to sanctions such as fines, adverse publicity and imprisonment.
How Marketing Macro Environmental Factors Affect Business Strategy
Ineffective voluntary codes and practices will often lead to governments introducing legislation to regulate the activities covered by the codes and practices. The second element of a PEST analysis in involves a study of economic factors.
All businesses are affected by national and global economic factors. National and global interest rates and fiscal policy is set around economic conditions.
The climate of the economy dictates how consumers, suppliers and other organisational stakeholders such as suppliers and creditors behave within society. Full Name Comment goes here. Are you sure you want to Yes No. Embeds 0 No embeds. No notes for slide. Micro and macro environment 1.
Unit 4 Macro And Micro Environmental Factor Assignment
Considered to be beyond the control of the organization. Share of Market 2.
According to the product concept consumers are most willing to buy products that have high quality and innovative features and are affordable at the same time.
Thus the organisation like the Ford Motor Company must continuously strive to make product improvements and to manufacture cars that suit the changing driving needs of the customers.
Thus it is necessary to give the customers some sort of incentives to buy the products in terms of discounts during the festive season and so on and so forth. The firm should convince and persuade the customers to make the purchase of its products and services through widespread promotional and advertising campaigns.
A strong marketing orientation comes with significant costs as much time and money is spent in studying the buying patterns and behaviour of customers in relation to the product being sold through extensive market research and knowledge inputs from various groups of customers. Often the companies like Ford have to modify their business operational processes to suit the changing nature of customer demand and requirements.
The companies have to invest heavily in building the technological infrastructure so as to develop state of the art products that will catch the attention of the customers and offer product features which the competitors are unable to offer Doyle, Companies need to match the product and services offering with that of the competitors and give the best of what is required to the customers. All these require a lot of investment from the part of the company and if it does not sell enough of products then it would not be able to recover the costs.
Six Microenvironmental Factors That Affect Businesses
The strength could be in the area of its technical dominance of its products or services or in the superiority of their marketing strategies. Then there can be threats like political instability and change of government rules and regulation of the host country Kotler, The macro factors include the political and the legal factors that have a bearing upon the business.
Also in the UK the happening of Brexit has thrown the business prospects of many firms into uncertainty as far as the trade and commerce rules and regulations are concerned.
The Impact Of Micro and Macro Environment Factors on Marketing
Similarly the state of the economy of the country plays a significant role in the marketing decisions of the company Doyle, For example in a booming and growing market the businesses have a lot of opportunity for business expansion and entry into new markets which is not possible if the country is going through a slowdown or a recession.
Also the social factors play a role in the marketing decision of a firm.Marketing Environment- Macro and Micro components and their impact on marketing decisions (COM))
For example if the country has a relatively young population then the product mix would have to be different than if the country has a ageing population Dalgic, Hence all these macro and micro factors affect the marketing decisions for a company from time to time since these conditions are usually volatile and keep on changing frequently. For planning an effective marketing strategy for Ford it has to decision the consumer market according to the 2.1 and preferences and consumption pattern of the which.
For example the fast sports cars should be targeted at the young and rich population who have the habit of buying such type of cars.
The cars that are meant for the young people should have a high pickup and a swanky look as opposed to the cars that are meant for family persons who need a lot of marketing and must have additional safety features to prevent accidents. Thus the cars should be built according to the needs and requirement of that segment of the customers for whom it is meant to be bought and used Goulding, Also the fast and fancy cars of Ford should have all the influences that go with the mentality of the younger generation of customers like speed and sexy looks.
For cars that are meant for older people with families large space and adequate safety features are the segmenting criteria and hence those cars should be built according to the needs and demands of that category of customers. This in short is the segmentation criteria that the company must keep in mind environmental investing millions of pounds in designing the right show of car for the factor people Doyle, and After the Ford micro company has identified the segments of the market then it must target a group of customers in that segment and try to match the products with the needs and aspirations of that category of buyers and customers.