1.

Explain Macroenvironment
Macroenvironment encompasses all of the relevant factors that make up the vast
environment that a company operates. Macroenvironment is consists of Six Major
forces that can shape the management’s decisions regarding the company’s long-term
direction and objectives. The Six Major forces are the following:
• Demographic
The factor that helps marketers to divide the population into different market segments
and target markets.
• Economic
Economic Environment is those factors that affect the consumers’ buying power and
patterns. It includes income, nature of the economy, resources, and distribution of
income and wealth in a family or country.
• Natural
Natural Environment is about the natural resources needed by the marketers in
producing the product. Therefore, marketers should be aware of the trends in the
natural environment.
• Technological
Technological forces change rapidly. These factors tend to create new products, new
marketing, and opportunities for marketers.
• Political
It includes government legislation, government actions, and public policies. In which
marketers and business management look closely at the political forces that can
affect the flow of their company.
• Cultural
The cultural environment includes cultural factors in heritage, living styles, and religion.

2. Explain Microenvironment

The microenvironment refers to the environment compromising of all the actors of an

organization’s immediate environment or factors that are close to the company that
affects the organization’s decision-making and performance. It is composed of; the
company, suppliers, marketing intermediaries, competitors, the public, and customers.
They are the factors that are close to the company that can either positively or negatively
affect its ability to create value and relationship with the customers.

• The company

In creating a marketing strategy, the marketing manager must include the insights
and data of a different organization in the company. To have a uniform objective from all
departments— from manufacturing and finance to legal and human resources, and that is to
understand customer value and creating customer value.
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 • Suppliers

Suppliers have the power to change the firm's position in the capabilities in giving
customer value. Because suppliers provide the materials or services to the firm, if there is a
constraint to the supply of the product, it can lead to cost increases. That can affect the
relationship of the company to the customers.

• Marketing Intermediaries

They are the merchants, distributor, dealers, and wholesalers that participate in the
company’s supply chain in distributing the products from source to the destination.

• Competitors

For a firm to survive, they must keep a close watch on their competitors, both existing
and potential. Therefore, firms create an analysis that helps to maintain or improve market
share and position.

• Publics

Publics can either make or break the overall appearance of the product. It has various
types (Financial public, Media publics, Government publics, Local Publics, Citizen- action
publics) in which the company must make an effort to learn and make a good impression
on those publics.

• Customers

The success of the organization depends on its capability to provide the needs and
wants of the customer. The company must take note to create and retain customers to keep
itself going.