THE COMPANY’S MACROENVIRONMENT

THE COMPANY’S MACROENVIRONMENT

1. Demographic Environment

   • Demography is the study of human populations in terms of size, density, location, age, gender, race, occupation and other statistics.
   • The explosive world population growth means growing to human needs to satisfy – growing market opportunities.
   • Marketers keep close track of demographic trends and developments in their markets both at home and abroad which includes family structures, changing age, geographic population shifts, educational characteristics and population diversity

2. Economic Environment

   • Economics is the factors that affect consumer buying power and spending patterns.
   • Subsistence Economies – Country population that consume most of their own agricultural and industrial output – this country offer few market opportunities
   • Changes in major economic variables such as income, cost of living, interest rates and savings and borrowing patterns have a large impact on the marketplace.

3. Natural Environment

   • natural resources that are needed as inputs by marketers or that are affected by marketing activities. Environmental concerns have grown steadily during the past three decades.
   • a) Shortages of raw material.
   • b) Increased pollution
   • c) Increased in government intervention in natural resources management.

4. Technological Environment

   • the most dramatic force now shaping our world
   • create new technologies, creating new technologies, creating new product and market opportunities.

5. Political Environment

   • Political factors are government regulations that influence business operation positively and negatively
   • may be current and impending legislation, political stability and changes, freedom of speech, protection and discrimination laws are factors affecting business operation and activities.
   • refers to Laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society.

6. Cultural Environment

   • Persistence of Cultural Value.
     • core beliefs and value have a high degree of persistence. Core belief and value passed on from parents to children and are reinforced by schools, mosque, business and government
     • Secondary beliefs and values are more open to change.
   • Shifts in Secondary Cultural Value.
     • Although core values are fairly persistent, cultural swings do take place
     • Marketers want to predict cultural shifts in order to spot new opportunities or threats
     • The major cultural values of a society are expressed in people’s views of themselves and others, as well as in their views of organization, society, nature and the universe.