How external factor can influence marketing decisions. BY jxdZ143757 Macro and Micro environment: How external factor can influence marketing decisions. Introduction While the managers making efforts to take advantages of their competitors on the on the inside business structure such as to cut the cost down by simplifying the staff group, the macro and micro factors are escaping detection. Unlike internal environment, the macro and micro environments of a business are not changed by the behavior Of its own whilst it is hard for most firms to be ready for reaction to every significant transformation outside.
For example, the influence of regime change due to a election or war is hard to anticipate but it is part of marketers’ responsibility.
This essay will list and discuss briefly the macro and micro environmental factors and how they influence marketing decisions. Macro environment Social and Culture factors Society is the fundamental element of macro environment. It is the costumers who are valuing products and services.
However, the population, lifestyle and tradition are quiet different between regions. And the value and lifestyle of one same region is changing faster along with the time.
Firms today have to adapt their products and promotion methods frequently to these changes. For example, Nikkei act more like a fashion brand in East Asia than a sport equipments manufacturer in Europe. Technology Similar to economic factors, technological renew is the hardest to predict. As knowledge and information of human beings is exploding, firms may face different market position and costumer interests every year or even shorter time.
The raising smartened is taking the market share of ‘traditional’ personal computer.
Marketers must keep anticipate these trends to let business invest on right technology. Modern manufacturers are easier to be beaten by substitute technology or products. International Economy The rotation Of economy is a eternal problem for business all over the world. As the globalization of international economy, the world is moving more and more like a combination. At the same time, the industry chain let the upstream and downstream manufacturers influence each other. Regions and firms form a highly interconnected net, every economic change is globalizes.
Marketers have to try to detect the opportunities and threats from the weaving net like the capricious oil price. Political and legal factors Laws are different between countries. An international organization must be used to this issue. Moreover, policy is another active element. Due to election, inside revolution or war, the government and policy could be sharply changed. Firms should predict and react well, sometimes they have to bet. Micro environment While firms can only react to macro environmental changes, they can communicate with micro environment and control it. Customer Business is all about competing for customers. The move Of customers’ interest will lead to the renew of products.
The marketers must be clear about what are their interest group and aim market, anticipate the moving value of products, hold customers and attract more. Supplier Suppliers provide resources need by the company. When there is alternative options, marketers could choose from them to cut cost or even instigate a price war among them. But when there is only one supplier for specific material, firms may have to accept high price. But markers could consider about to acquire it by themselves.
Competitors Markers should thinking about two questions: Is this industry easy to enter? And what kind of close substitution could be established in the future? Most companies will face the threats of competitors all along. Some have not recognized their opponents well when they are already beaten. Conclusion The core of marketers’ work upon macro and micro environment of business is prediction and set reaction strategies. As firms have less control over these environmental changes generally, the opportunities and threats in the future require competitive abilities of reorganization, communication, analysis and anticipation from marketers who are devoting themselves to the survive and growth oftener companies.