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Marketing environment(macro)


2. 2. Macroenvironment The larger forces of the society that affect the micro environment are
collectively referred to as the macro environment. The company and all other actors
operate in a larger macro environment of forces. These forces shape opportunities and
pose threats to the company. There are six major forces in the macro environment from
marketing perspective. These forces affect the marketing plan.
3. 3. IMPORTANCE OF MACRO ENVIRONMENT Consists of six components namely:
Demographic ,economic cultural,natural,technological and legal Trends and
developments in these macro environments influence the marketing strategies.
4. 4. Demographic forces Company Natural Technological Economic Political Social
5. 5. SWOT ANALYSIS S- Strengths W-Weaknesses O- Opportunities T- Threats
7. 7. Demographic factors Population Growth Population age mix Ethnic markets
Educational groups Household Pattern Geographic Shifts in Population Shift from
mass market to micro market.
61 would be Asian(20 chinese 17 Indian),14 African, 11 European , 8 Latin American,5 north
american and only one from Australia or Antarctica. There would be 18 cars in the village
18 villagers are unable to read and write 33 have cellphones and 16 ae online on the
internet. 63 villagers have inadequate sanitation 30 villagers would be unemployed
By the end of the year one villager would die and two new would be born so the population
would climb to 1o1!
9. 9. TECHNOLOGICAL FACTORS Changes rapidly Creates new markets and
opportunities Challenge is to make practical. Safety methods result in higher research
cost. Challenge vests upon technology to make it affordable since the competition is high.
10. 10. Increasing population Increasing Pollution Factors affecting Unregulated Industrialisation
natural environment Increasing Consumerism
11. 11. Economic Factors Inflation Rate Repo Rate Exchange Rate Revenue and
Profitability Capital Availability Taxation policy
12. 12. Social Factors Values Attitudes Lifestyle
13. 13. Political Factors INCLUDES: Laws Government Agencies Pressure Groups
that Influence or limit various organisations and individuals in a given society.
14. 14. CONCLUSION Macro environmental factors are those factors which are beyond the
scope of control of an organization. An organization can alter its own policies as per the
macroenvironmental conditions but not the condition itself. The organization ,though a
mechanised body in itself cannot work in isolation and is always under the influence of the
external forces viz. macro environment.
Marketing micro environment

1. 1. The market environment is a marketingterm and refers to factors and forces thataffect a
firms ability to build andmaintain successful relationships withcustomers
2. 2. InternalEnvironmentMicroEnvironmentMacroEnvironment
3. 3. The micro-environment affects the organizationdirectly. It refers to the environment that
most closelylinked to the firmThis environment is also not under the full control
ofbusiness. The business can influence this environment.
4. 4. CustomerPublic Supplier Components Marketing Intermediaries Competitor
5. 5. Customers are theactual buyer of our goodsand services. The company muststudy
its customermarkets closely since eachmarket has its own specialcharacteristics.
6. 6. individuals and households that buy goods and services Consumer Market for personal
consumption buy goods and services for further processing or for use Business Market in
their production process Reseller Market buy goods and services in order to resell them at
a profit agencies that buy goods and services in order to produceGovernment Market public
services or transfer them to those that need themInternational Market buyers of all types in
foreign countries
7. 7. Suppliers are firms andindividuals that providethe resources needed bythe company.
They are an importantlink in the companysoverall customer valuedelivery system.
8. 8. RightTimely Price Quality Product
9. 9. AvailabilityPrice of key inputs
10. 10. Conducting competitoranalysis is critical forsuccess of the firm A marketer
mustmonitor its competitorsofferings to createstrategic advantage
11. 11. Marketing Marketing Intermediariesintermediaries are firmsthat help the company to
Resellerpromote, sell, anddistribute its goods to Physical distributionfinal buyers. firms
Marketing service agencies Financial intermediaries
12. 12. Reseller They are those who hold and sell companys product. Wholesaler and
retailer.Physical Distribution Firm They help the company to stock and move goods from
their points of origin to their destinations. Transportation and warehousing.
13. 13. Marketing Service Agencies They help the company target and promote its products.
Advertising agencies. Media agency, marketing research firms, etc.Financial Intermediaries
They help finance transactions and insure against risks. Banks, credit companies, insurance
company, ect.
14. 14. A public is any group that has an actual or potentialinterest in or impact on an
organizations ability to achieveits objectives. A company should prepare a marketing plan
for all oftheir major publics.
15. 15. Financial Internal Government PublicCitizen Group Media General Local
Macro environment


2. 2. MACRO ENVIRONMENT The major external and uncontrollable factors that influence an
organization's decision making, and affect its performance and strategies. These factors
include the economic factors; demographics; legal, political, and social conditions;
technological changes; and natural forces. Specific examples of macro environment
influences include competitors, changes in interest rates, changes in cultural tastes,
disastrous weather, or government regulations.
4. 4. DEMOGRPAHIC ENVIRONMENT Demography is the study of human populations in
term of sizes, density, location, age, gender, race, occupation, and other statistics. The
demographic environment is a major interest to marketers because it involves people, and
people make up markets.
5. 5. ECONOMIC ENVIRONMENT The economic environment consist of factors affecting
consumers purchasing power and spending patterns both across and within their world
6. 6. NATURAL ENVIRONMENT The natural environment involves the natural resources that
are needed as inputs by marketers or that are affected by marketing activities.
7. 7. TECHNOLOGICAL ENVIRONMENT The technological environment is perhaps the most
dramatic force now shaping our destiny. Forces that create new technologies, create new
product and market opportunities.
8. 8. POLITICAL ENVIRONMENT The political environment consist of laws, government
agencies, and pressure groups that influence and limit various organizations and individuals
in the given society.
9. 9. CULTURAL ENVIRONMENT The cultural environment is made up of institutions and
other forces that affect a societys basic values, perceptions, preferences, and behaviors.
10. 10. CASE STUDY ON RELIANCE INDUSTRIES Reliance Industries Limited (RIL) is an
Indian conglomerate holding company headquartered in Mumbai, Maharashtra, India. The
company operates in five major segments: exploration and production, refining and
marketing, petrochemicals, retail and telecommunications. The group is present in many
business sectors across India including petrochemicals, construction, communications,
energy, health care, science and technology, natural resources, retail, textiles, and logistics.
RIL is the second-largest publicly traded company in India by market capitalization and is the
second largest company in India by revenue after the state-run Indian Oil Corporation. The
company is ranked No. 99 on the Fortune Global 500 list of the world's biggest corporations,
as of 2013.RIL contributes approximately 14% of India's total exports.
11. 11. Is Mukesh Ambani falling out with the Narendra Modi government? Mukesh and Reliance
Industries Ltd (RIL) have been at the receiving end of a couple of strong government
decisions -- the biggest one being to keep gas price hike in abeyance. UPA-II had set April 1
as the date for the hike, but left it to the next government to take a final decision later. It was
expected that no sooner does Narendra Modi come to power, the hike would be announced.
But that has not happened, giving the first indication that all was not well between Mukesh
and the government, said a source in the BJP. Sources also speculate that the government
may be buying time before helping RIL. An e-mail sent to RIL late evening did not elicit any
response. It is too short a notice, said the spokesperson. That has not happened in the first
45 days of Modis rule. This is being read as proof of a rift between RIL and the Modi
government. That Reliance decided to hit back by deferring investments in fresh fields like
the R-cluster in KG-D6 Block is also being taken as proof of a fall from grace for RIL and
Mukesh Ambani. A second reason, cited by sources in the BJP, for the alleged fallout
between Mukesh and the government is linked to the CAG reports on 2G that indicated that
RIL had rigged conditions in its favour to bag the 4G contract, and which it used to launder
money. There is an AAP angle to this allegation, too. Supreme Court lawyer and AAP
member Prashant Bhushan has filed a petition for the cancellation of RILs 4G deal. Coming
in handy for Bhushan was the Modi governments decision to bring back black money
stashed away abroad in six months, for which the government set up a special investigation
team (SIT).
12. 12. The AAP troubleshooter forwarded a loaded letter to SIT on Black Money, alleging that
Mukesh Ambani was a common money launderer, who used the 4G contract route to turn
black money to white. Reliance is laundering its ill-gotten profits from KG Basin through
Singapore and depositing the same into accounts of Mr. Mukesh Ambani, Bhushan wrote in
his letter to ML Meena, member secretary, SIT on Black Money. There have been two
detailed CAG reports that says RIL is involved in inflation of capital expenditure, over-
invoicing and siphoning of money from the KG Basin D6 Block. There is clear indication that
such amounts are being laundered and funneled back into Reliance companies, he said.
The latest proof that RIL and the Modi government are not on the same page and that Modi
will not go out of his way to smoothen things out for RIL is the $579million fine the
government has slapped on RIL for continuous shortfall in KG Basin gas production. Gas
price hike deferment led RIL and its other partners in KG-D6 basin Niko Resources and
British Petroleum to file arbitration against the government, which many considered as an
arm-twisting exercise. Nonetheless, the new government has made it amply clear over the
last two months through various announcements that it is not in favour of a sharp rise in gas
price.. The oil ministry also slapped an additional penalty of $579 million for natural gas
production shortfall from KG-D6 block for the financial year 2013- 14. The penalty in the form
of disallowing costs incurred on the field is for missing the target in 2013-14. With this, the
total costs disallowed to RIL will increase to $2.375 billion. Another recent document which
was passed by oil ministry to the cabinet committee also indicated that RIL should not be
allowed new gas price for KG-D6 produce until it is able to meet the shortfall in gas output
over the last four years.