Impact of Macro Environment In Marketing
The macro-environment consists of all the external forces that affect the marketing activities of the business firm and all these forces are uncontrollable in nature. The macro-environment makes a significant impact on the marketing field.
How does the macro-environment affect the business? A business is always affected by various factors. The factors of the macro-environment are political, legal, economic, natural, demographic, social, cultural, technology, etc. affect the operations of marketing activities of the business. The impact of the macro-environment in marketing are as follows,
Policy Matters
Change in the form of government leads to a change in government policy, which affects the business practices of the firms. Therefore, marketers also need to formulate new business policies to adjust to the changed government policy.
Production System & Productivity
Changes in the nature and level of technology in the market may affect the marketing of the firm’s product in the marketplace. Therefore, marketers need to import and adopt new or appropriate technology to produce the products or services as desired by savvy customers. This may lead to a change in the production system and productivity of the firm as well.
Also Read: Marketing Environment: Definition, Features, Types, Importance
Social Life
Marketers go on adopting new technology over time according to the market demand, so may produce and offer sophisticated or competitive products in the market. This may lead to change in the social life of the people.
Market Competition
Environmental forces are not rigid in nature, they go on changing over time creating new opportunities and threats to the business communities. This situation may create a new but healthy competition among the business communities or marketers which has a two-fold advantage:
- It may upgrade the competitive capacity of the marketers on one hand
- The customers will enjoy better and new selection facility in the market
Buying Decision
Customer needs want, and requirements go on changing over time, which the marketers must understand correctly. Due to changes in customer needs and preferences, government policies and changes in technology in the market will lead to change in production system, product quality, and services provision in the market.
As a result, the customers will enjoy a greater range of products and service selection facilities in the market. This situation will give new tastes and experiences to the people.
Pricing Decision
Price is a sensitive and primary factor in making buying decisions for the majority of customers. Though the main purpose of the business community is to get a profit through better products and services, they may not be able to increase the price due to the high level of competition between them.
Most business firms try to set an affordable or reasonable price for the product or services. This is because they know small mistakes in pricing decisions may damage the market for their product.
Sales and Profit
Change in environmental forces creates both opportunities and threats in the business field, hence every business firm tries to search for the best opportunities that can sustain its business. Firms that are able to identify the best opportunities properly and have the ability to adopt suitable strategies can improve their business in terms of both sales and profit levels.
Natural Resource Conservation
Most manufacturing firms are dependent on natural resources. However, natural resources being exploited it has disturbed the natural environment. This exploitation of resources ultimately is affecting the human and their survival.
In order to protect the natural resources and human life from danger, the green marketing concept has been developed, quality control systems including ISO 9000 have been established and the level of government intervention over natural resource management has been increased on the national level as well in the global scenario.