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PRINCIPLES OF
MARKETING
Quarter I – Week 6
Macro and Micro Environment

CONTEXTUALIZED LEARNING ACTIVITY SHEETS

SCHOOLS DIVISION OF PUERTO PRINCESA CITY
Principles of Marketing – Grade 12
Contextualized Learning Activity Sheets (CLAS)
Quarter I - Week 6: Macro and Micro Environment
First Edition, 2021

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 Lesson 1
Macro and Micro Environment
MELC: Analyse the elements of macro- and micro-environment and their influence to
marketing planning (ABM_PM11-Iei-10)

Objectives:
1. Define Marketing Micro and Macro-environment;
2. Enumerate and explain the forces under micro and macro environment; and
3. Analyse the elements of macro- and micro-environment.

Let’s Try
Directions: Read each question carefully. Write the letter of the correct answer on the space
provided before the number.

_____1. Which of the following marketing environment is internal and relevant to the
operations of the company?

A. Marketing Environment
B. Marketing Macro-Environment
C. Marketing Micro-Environment
D. Marketing Strategic Environment

_____2. Marketing macro-environment are those factors that are external to the
organization. Which of the following is an example of a macro-environment factor?

A. Customers C. Politico-legal
B. Market Intermediaries D. Suppliers

_____3. How suppliers as an internal factor affect the business?

A. The suppliers affect the business due to its political influence outside business.
B. The suppliers affect the business as they produce for the business and low
production will result to decrease in sales.
C. The suppliers affect the business due to its capacity to delay the delivery of raw
materials needed to produce goods.
D. The suppliers affect the business because they provide the materials needed
for production, any delay or unreasonable services from them will affect the
production and sales of the business.

_____4. Mona and Lisa are the owners of Monalisa’s Smile Photography, which of the
following is an economic factor that may affect their business?

A. A new competitor who started its operation 2 months ago.

B. A supplier who did not deliver their ordered photo papers on time.
C. A customer who cancelled its schedule photo shoot due to personal reason.
D. A pandemic that limits the movement of people, prohibits mass gatherings and
regulates businesses operations.

1
_____5. Which of the following micro-environment elements creates the demand for a
product or service?

A. Competition C. Market Intermediaries

B. Customer D. Suppliers

_____6. The Department of Interior and Local Government released on April 09, 2020 the
Memorandum Circular No. 2020 – 071 which orders the mandatory wearing of
facemasks or other protective equipment in public areas. The said memorandum is
to prevent further increase of COVID-19 cases and opened another opportunity for
small and big businesses in line with textile and tailoring. Which macro-
environment factor is present?

A. Demographic C. Politico-Legal
B. Economic D. Socio-Cultural

_____7. Which of the following defines demographic macro-environmental factor?

A. It is referred to as “acts of God.”

B. It is composed of current and impending technological changes.
C. Defined as the beliefs, customs, and arts of a particular society, group, place,
or time.
D. This includes population rate, gender, age, income composition patterns, civil
status, and family size.

_____8. In 2013, Typhoon Yolanda, the deadliest typhoon in Philippine history struck the
country and Tacloban is one of the most affected city. Local businesses closed,
investors stopped their operation, only ruins is visible in the area. Which macro-
environment factor should be considered?

A. Demographic C. Socio-Cultural
B. Natural D. Technological

_____9. In this time of pandemic, most transactions are done virtually or online using
various platforms. Teacher Dionne is not in favor with this because she is not
familiar with using gadgets and online applications. Which macro-environment
factor may affect Teacher Dionne’s performance?

A. Economic C. Socio-Cultural
B. Market Intermediaries D. Technological

____10. How does micro and macro-environment factors influence Marketing Planning?

A. The company can decide the interior designs to be done.

B. The micro and macro environment factors are just simple changes in the
environment which has no effect to the business operation.
C. The micro and macro-environment tells the business about the changes inside
and outside of their company which give them ideas on how to cope
with the changes through innovation and strategic planning.
D. None of the above

2
 Let’s Explore and Discover
Unlocking of How does factors within and outside the company or business
Difficulties affect its operation? Does internal and external marketing
factors should be monitored? What are these factors that might
Marketing Macro- influence the success of a business? Let us all find out the
environment are answers.
external and
uncontrolled by the The Marketing micro-environment includes forces that are
company. internal to the company or those that are relevant to its
operation. It is composed of the company itself, its suppliers,
Marketing micro-
market intermediaries, customers, competition, and its
environment includes
various publics. The consideration of this is important as they
forces that are internal to
affect the company’s ability to build and maintain sustainable
the company.
relationships with current and prospective customers.

The Marketing Micro-environment Elements/Forces

1. Suppliers provides raw materials, utilities, labor, capital, and equipment.

2. The customer is the element or force that create the demand for a certain product or
service.
3. Competitors are the same players in the industry which may introduce new and/or
improved products in the market.
4. Market Intermediaries are the channels that link the organization to its customers.
5. The company itself is a part of micro-environment with functions that includes research
and development, finance, operations and human resources.
6. The term “public” refers to people in general. Philip Kotler said that “a public is any group
that has an actual or potential interest in the impact on a company’s ability to achieve
its objectives”.

The Company

Market Intermediaries Public

Marketing Micro-environment

Competitors Suppliers

Customers

The Marketing Micro-environment Elements/Forces

3
 Macro-environment is a set of external factors which are not controllable but has an effect in
the success of a company. These factors maybe an opportunity, which a business can take
advantage of, or threat, which the company must avoid. There are 6 factors under macro-
environment: economic, politico-legal, socio-cultural, demographic, technological, and
natural environments

The Elements/forces of the Macro-environment

1. Economic Macro-environment - It represents the current economic situation which
may directly affect the organization or business. Some examples of this are inflation rate,
foreign exchange rates, how consumer spends their money, and consumer price index,
among others.
2. Politico-legal Macro-environment - Includes both legal and political factors. Political
situation like national election may affect the stability of a certain business as well as
the passage of new bills that could be enacted into law.
3. Socio-Cultural Macro-environment - The culture (beliefs, customs, arts, etc.) of a
specific area may dictate or influence how a business should be done.
4. Demographic Macro-environment - Demographic includes population rate, gender, age,
income composition patterns, civil status and family size. The company’s demographic
macro-environment consists of changes in population characteristics.
5. Technological Macro-environment - This is composed of current and impending
technological change. Sometimes, this is the single factor that affects the product’s rapid
acceleration or bring about untimely demise.
6. Natural Macro-environment - Refers to the natural resource inputs and environmental
concerns such as typhoons, earthquakes, volcanic eruptions, climate change, etc.
To further understand the role and effects of these macro-environment factors a
sample illustration is shown below:

Economic Politico-legal
Bikes are more affordable compared to The city government has institutionalized
other mode of transportation the use and promotion of bicycles (SDO
No. 64-2020)

Technological
Assembly lines that could produce Marketing Natural
numerous parts of bikes are Macro- No harmful effects to the
available which accelerate Environment environment. May help
production to meet the demand. of Bike-Cycle lessen pollution and global
Center in warming.
Puerto
Princesa City
Socio-Cultural
Demographic
Due to pandemic a sudden
Men, women at any age can use
change in culture
bikes and prefer using it as it’s also a
happened. People now are
natural way of losing weight and
more health conscious
strengthen immune system.

The Role and Effects of Macro-environment

(Source: Real C. So and Oscar G. Torres, Principles of Marketing, Quezon City:Vibal

Group, Inc., 2016, 31 –
4
 Let’s Practice
Directions: Read each statement below, answer TRUE if the
ACTIVITY 1 statement is correct and FALSE if the statement is incorrect
based on the definition given above about the marketing micro
environment.
_______1. Customers has a direct influence in every business.
_______2. Companies should value intermediaries like wholesalers and retailers because
they are helping the company in the distribution of goods.
_______3. The company itself is not part of the micro-environment forces because they are
not responsible with the actions of the management and employees.
_______4. Competition should be ignored, people will buy wherever they want.
_______5. Companies should give attention on how the general public reacts and responds
to their products and services.

Directions: Identify which macro-environment factor are the

ACTIVITY 2
following. Choose your answer from the selection below. Write only
the letter of your choice on the space provided before each number.

A. Economic B. Politico-legal C. Socio-Cultural

D. Demographic E. Technological F. Natural

______ 1. The newly elected president signed a law that limits the number of imports per
year.

______ 2. To continue business during pandemic, most companies have launched online
ordering and cashless payments through online platforms.

______ 3. Rosa after being hired as the general manager of a multinational company
shifts from using low cost bags to high-end which price ranges from 20,000 to
50,000 each.

______ 4. Due to typhoon Inday, banana plantations has been damaged, resulting to low
production of products that uses banana as ingredient.

______ 5. The price hike in petroleum products may also lead to price increase in basic
goods like rice, canned goods and spices.

How macro and micro environment factors does affect a business positively?
_____________________________________________________________________
_____________________________________________________________________
__________________________________________________________________.

5
 Let’s Do More

ACTIVITY 1 Directions: Using the hints/clues below and macro-economic

terms inside the box, COMPLETE the crossword puzzle.

Across Down
3. Changes in population 1. Its indicates the cost of doing
4. Composed of current and impending business
Changes in technology 2. A highly uncertain political
5. Based on beliefs, customs, arts, etc. situations
6. Acts of God

Demographic Technological Socio Cultural

Politico Legal Natural Economic

ACTIVITY 2 Directions: Match the terms under “Column A” with the

correct macro-environment forces in “Column B”.

A B
1. Inflation rate a. Natural Macro - environment
2. Beliefs and Customs b. Technological Macro-environment
3. Typhoons and volcanic eruptions c. Demographic Macro-environment
4. Machines and computers d. Socio-Cultural Macro-environment
5. Law and bills e. Politico-legal Macro-environment
6. Population rate f. Economic Macro-environment

Can you think of micro and macro environment factors that currently affects the
businesses in your community?

________________________________________________________________________________________
_____________________________________________________________________________________.
6
 Let’s Sum It Up

A. Using the words written in the box, create a sentence which will
Directions sum-up your understanding about the lesson in Micro-
environment.

B. For Macro-environment, rearrange the scrambled words based

on the hints provided.

Internal Forces Market Intermediaries Company Customer

Marketing micro-environment Public Competitors Directly

A. Suppliers, __________________, _______________________, __________________________,

the __________________ and the _________________ are _________________________ under

_____________________________ which _____________________________affects the business.

B. SCRAMBLED WORDS ANSWER HINT

Example: YNOEMCO ECONOMY inflation rates
1. COPLTIOI EAGLL _________________ law, governance
2. AOCSUOLRLTUCI __________________ beliefs, customs
3. CEHOIGRAMDP _________________ age, gender, income
4. CHOGCAIOELLNT __________________ computer, internet
5. ANURTAL __________________ typhoons, floods

Let’s Assess
Directions: Read each question carefully. Write the letter of the correct answer on the space
provided before the number.

_____1. Marketing macro-environment are those factors that are external to the organization.
Which of the following is an example of a macro-environment factor?
A. Customers C. Politico-legal
B. Market Intermediaries D. Suppliers

7
_____ 2. How suppliers as an internal factor affect the business?
A. The suppliers affect the business due to its political influence outside
business.
B. The suppliers affect the business as they produce for the business and low
production will result to decrease in sales.
C. The suppliers affect the business due to its capacity to delay the delivery of
raw materials needed to produce goods.
D. The suppliers affect the business because they provide the materials needed
for production, any delay or unreasonable services from them will affect the
production and sales of the business.

_____ 3. Mona and Lisa are the owners of Monalisa’s Smile Photography, which of the
following is an economic factor that may affect their business?
A. A new competitor who started its operation 2 months ago.
B. A supplier who did not delivered their ordered photo papers on time.
C. A customer who cancelled its schedule photo shoot due to personal reason.
D. A pandemic that limits the movement of people, prohibits mass gatherings
and regulates businesses operations.

_____ 4. Which of the following marketing environment is internal and relevant to the
operations of the company?
A. Marketing Environment
B. Marketing Macro-Environment
C. Marketing Micro-Environment
D. Marketing Strategic Environment

_____ 5. Which of the following micro-environment elements creates the demand for a
product or service?
A. Competition C. Market Intermediaries
B. Customer D. Suppliers
_____ 6. Which of the following defines demographic macro-environmental factor?
A. It is referred to as “acts of God.”
B. It is composed of current and impending technological changes.
C. Defined as the beliefs, customs, and arts of a particular society, group,
place, or time.
D. This includes population rate, gender, age, income composition patterns,
civil status, and family size.
_____ 7. In 2013, Typhoon Yolanda, the deadliest typhoon in Philippine history struck the
country and Tacloban is one of the most affected cities. Local businesses closed,
investors stopped their operation, only ruins are visible in the area. Which macro-
environment factor should be considered?
A. Demographic B. Natural C. Socio-Cultural D. Technological
_____ 8. Which of the following internal forces provides raw materials, utilities, labour,
capital, and equipment?
A. Competitors B. Customers C. Public D. Suppliers
_____ 9. These are channels that link the organization to its customers. Which of the
following is this?
A. Competitors C. Public
B. Market Intermediaries D. The Company

____ 10. Which of the following is NOT a marketing micro-environment force?

A. Customers B. Demographic C. The Company D. The Public
8
 Answer Key
Let’s Try
1. C 3. D 5. B 7. D 9. D
2. C 4. D 6. C 8. B 10. C

Let’s Practice

Activity 1
1. True 2. True 3. False 4. False 5. True
Activity 2
1. B 2. E 3. D 4. F 5. A

Let’s Do More

Activity 1
Across: 3. Demographic 4. Technological 5. Socio Cultural 6. Natural
Down: 1. Economic 2. Politico-legal

Activity 2
1. F 2. D 3. A 4. B 5. E 6. C

Let’s Sum It Up
A. Suppliers, customers, Market Intermediaries, competitors, the public and the
company are internal forces under macro- environment which directly affects the
business.
B.
1. Politico Legal 2. Socio Cultural 3. Demographic 4. Technological 5. Natural

Let’s Assess

1. C 3. D 5. B 7. B 9. B
2. D 4. C 6. D 8. D 10. B

References

Book
So, Real C. and Oscar G. Torres. Principles of Marketing,Quezon City: Vibal Group, Inc.,
2016.
9
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