macro environment

Examples of macro environment in the following topics:

• Scanning and Analysis

  • Environmental scanning is one technique used by organizations to monitor the environment.
  • All organizations should continuously appraise their situation and adjust their strategy to adapt to the environment.
  • One technique used by organizations to monitor the environment is known as environmental scanning.
  • There are a number of common approaches for how the external factors, which describe the macro environment, can be identified and examined.
  • The segmentation of the macro environment according to the six presented factors of the PESTEL analysis is the starting point of the global environmental analysis.

• The Dynamic Environment

  • It is important to place equal emphasis on both the macro and micro-environment and to react accordingly to changes within them.
  • Two key levels of the marketing environment are the micro-environment and the macro-environment.
  • The company aspect of micro-environment refers to the internal environment of the company.
  • The macro-environment includes concepts such as demography, economy, natural forces, technology, politics, and culture.
  • Contrast the ever-evolving characteristics of a micro and macro marketing environments and how they apply to the proactivity, profitability and viability of a company

• Trends

  • The micro environment refers to the forces that are close to the company and affect its ability to serve its customers.
  • The technological environment is perhaps one of the fastest changing factors in the macro environment.
  • The corporate aspect of the micro environment refers to the internal environment of a company.
  • The suppliers of a company are also an important aspect of the micro environment.

• Conducting a Situational Analysis

  • Managers can use various methods of analysis to understand the firm's own capabilities, customers, and business environment.
  • Managers use it to analyze the internal and external environment of an organization and the firm's own capabilities, customers, and business environment.
  • A situation analysis is often referred to as a "3C analysis", but when extended to a 5C analysis it allows businesses to gain more information about the internal, macro and micro-environmental factors within the environment.
  • Some companies conduct a PEST analysis which scans the external macro-environment in which the company operates.
  • A SWOT analysis is another method under the situation analysis that examines the Strengths and Weaknesses of a company (internal environment) as well as the Opportunities and Threats within the market (external environment) .

• Conclude with Action Plan

  • Situational Analysis - the current situation - the macro-environment - the Economy, legal, technological, ecological, socio-cultural and supply chain oriented, market analysis, market definition including segmentation and size, industry structure, strategic groupings, competition strengths and weaknesses and their market share, a Porter 5 Force Analysis, a consumer analysis, the nature of the buying decision, staffing, demographics, psychographics, buyer motivation and expectations, loyalty segments and company resources.

• Competitive Intelligence

  • Competitive Intelligence (CI) in marketing research involves defining, gathering, analyzing, and distributing information about products, customers, and competitors and any aspect of the environment needed to support executives and managers in making strategic decisions for an organization.
  • CI seeks to make the organization more competitive relative to its entire environment and stakeholders: customers, competitors, distributors, technologies, and macro-economic data.

• Marketing Plan Elements

  • A technology startup's marketing plan may not be the same as that of a more established company due to the different environments in which they operate.
  • For example, a technology startup's marketing plan may not be the same as that of a more established company due to the different environments in which they operate.
  • It looks at both the macro-environmental factors that affect many firms within the environment and the micro-environmental factors that specifically affect the firm.
  • The purpose of the situation analysis is to indicate the organizational and product position of the company, as well as the overall survival of the business within the environment.
  • Companies must be able to provide a summary of opportunities and problems that may be encountered within the environment to gauge an understanding of their own capabilities within the market.

• Responding to the External Environment

  • Marketers can respond in three basic ways to their environment – doing nothing, being proactive, or reacting.
  • A less common response is to be proactive, or to try to change the environment before it changes the marketplace.
  • Regardless of the response to the external environment, marketers should be driven by an overarching vision, mission, and strategy, all of which provide clarity in how to react to change with tactics that are adaptive and responsive.

• Environmental Management

  • Companies which have the environmental management perspective take actions to influence their marketing environment.
  • Some companies treat the external marketing environment as if it were an uncontrollable force.
  • Instead of doing nothing or reacting to change, companies with this perspective take actions to influence their marketing environment.
  • Cathay Pacific Airlines is an example of a company that chose to manage their external environment even though it seemed to some people that the situation was totally out of their control.
  • Cathay Pacific Airlines has successfully managed changes in their external environment.

• Calculating Market Share

  • The main advantage of using market share as a measure of business performance is that it is less dependent upon macro-environmental variables, such as the state of the economy or changes in tax policy.