K_EX-058 THE MICRO AND MACRO ASPECTS OF UNDERSTANDING

CUSTOMERS

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INTRODUCTION

There are macro and micro criteria to consider in order to properly analyse data and
design the correct tactics if behavioral targeting is about assembling a complete
collection of behaviors to profile the audience and understand it. Similarly to
economics, macro and micro scopes exist in the field of economics. Businesses
operate in a complex environment that includes a variety of variables. Macro- and
Micro-environments are the two types of business environments. The micro-
environment directly affects business activity, whereas the macro-environment has an
indirect effect on all enterprises on a global scale. Analyzing several aspects of both
the micro and macro business environments, the differences between micro and macro
business environments may be discerned.People's actions (consumers) in the
acquisition, use, and disposal of economic products and services may be characterised
as "consumer behaviour," including the decision processes that precede and decide
these actions. In a variety of ways, marketing managers may benefit from an
understanding of how customers make purchasing choices. The act and process of
making decisions by persons engaged in the purchase and usage of items is known as
consumer behaviour, sometimes known as buyer behaviour. Consumer behaviour is a
term used to describe how people behave while making purchases. To meet a
perceived need, customers participate in a problem-solving conversation while
making choices. Consumer Behaviour is the term for this. Using a product or service
for one's own benefit is referred to as consumer behaviour. Individuals, groups, and
organisations utilise consumer behaviour to study how they choose, acquire, use, and
dispose of products and services to meet their needs and desires (Kotler2021).
The micro-environment and its influencing variables
Business operations on a small scale are particularly sensitive to changes in the micro-
environment. There are several factors that are special to a company and might have
an impact on daily operations and performance for a short period of time. Providers
and shareholders, consumers and workers and the media are just a few of the many
influences at play.(Needham and Dransfield, 2021)
Suppliers supply raw materials, machinery, and equipment to enterprises. As
employees supply essential inputs for production, their activities might have an
influence on the organization's strategy. Without timely and appropriate services, the
manufacturing process may be delayed, resulting in longer production times and a
smaller number of sold products.
When suppliers raise the price of raw materials, this might have an impact on a
company's marketing strategy. As a result, final product costs will rise even more. As
a result, a firm's ability to outperform the competition depends on its ability to
maintain positive relationships with suppliers.(Taylor, 2020)
Customers are the ultimate recipients of goods and services, since they are the kings
of any firm. They are essential to every business since they help to increase income by
luring in new clients. If a corporation wants to retain current consumers and attract
new ones, its marketing strategy must concentrate on meeting their requirements and
preferences. Increasing the client base may be accomplished in part by providing
better post-sale support and other value-added services.
Nowadays, people are more likely than ever to post favourable or negative
evaluations about a brand's products or services on various social media platforms.
Other consumers' purchasing decisions are affected as well since many individuals
utilize social media for a variety of objectives. A company's brand value is enhanced
and its customer base expands and becomes more loyal when its consumers are
pleased. (moller, 2021)
Business rivals may have a direct impact on a company's strategy, as can competitors.
If you want to get an advantage over the competition, you'll need to discover their
USP (Unique selling point) for the products and services they provide. In addition, a
corporation may maintain its competitive edge by providing goods or services that
outperform those of the competition.
In the case of, "Wow!" The unique selling point of the Mo-mos brand is its wide
variety of Mo-mos in a variety of tastes, which gives it an edge over its rivals.
Employees: Organizations may accomplish their goals by using personnel that are
both highly competent and knowledgeable in their respective fields. Organizations can
secure their success by recruiting the appropriate people and providing them with
proper training and development opportunities.
For example, departments like as finance, manufacturing, purchasing, and human
resources (HR) may be more productive if they have people that are well-versed in
their particular fields of expertise. Employees need to be trained on how to utilize new
technology in order to boost their productivity when it is implemented in an
organization to increase the efficiency of personnel.
Shareholders are those who put money into a business and possess stock in it. As a
result, they become a stakeholder in the firm. They are ultimately entitled to a return
on their investment. Because of this, organizations are legally obligated to pass
forward the money they create. In order to retain the interest of shareholders,
corporations pay dividends. As a result, it is critical for an organization to strike the
correct balance between the interests of its shareholders and its own.
If, for example, shareholders believe that their portion of the company's profits will
rise, this might have a long-term impact on the company. A solid connection with
shareholders is essential for long-term success. Media: Organizations must also use
media channels to sell themselves. In order to market their goods and services,
businesses can no longer function without the help of media. As a result, corporations
must maintain a positive relationship and reputation with the media. Losses might be
substantial if the firm has a bad reputation in the media. In order to manage media-
related operations smoothly and favour ably, companies now have a distinct PR
(Public relations) department. It's important for companies to think outside the box
when it comes to reaching their target demographic or consumers.
Examples include newspaper ads, television shows, and social media platforms like
YouTube (Facebook), Twitter (Twitter), Instagram (Instagram), etc.
Factors in the macro-environment
With regards to an organization's general and external environment, macro-
environment influences its working style, strategy, decision-making process and
performance. The macro-environment is a constantly shifting environment. It is
subject to influences beyond the control of any one entity. The PESTLE analysis is a
macro-environment assessment that encompasses many external environment
elements or pressures such as:
Forces in the political arena
In the context of economics,
Factors of culture and population
To put it simply, technology is
Forces of law
Ecology and the physical world
Differences that are significant enough to separate the two. The following is a list of
the micro and macro environments:
The micro-environment is a specialized environment that is in close proximity to the
company. The macro-environment, on the other hand, is a broader context that affects
all aspects of the firm.(moller, 2021)
Issues in the micro-environment may have an impact on a single organization, but
macro-environment factors can have an impact on whole industries.
Controlling the macro-environment elements is almost difficult for businesses, but the
micro-environment aspects may be controlled.
Internal elements, like as consumers, suppliers, rivals, and so on are part of the micro-
environment, while macro-environmental influences include things like politics,
social, and economic considerations, among other things.
The internal strengths and weaknesses of an organization are the driving force behind
micro-environment elements. However, macro-environmental variables are concerned
with the external market of a business and its possibilities and challenges.
Companies examples
Procter & Gamble (PG) and Uber are two examples of effective micro-marketing
initiatives. Pantene relaxed and natural products were introduced by P&G in a unique
marketing effort that targeted African American women.(Surridge, 2021) 1 To
understand more about the unique transportation issues in each location it was
planning to enter, Uber examined big data from social media sites like Facebook and
Twitter. In the end, the company's customer base grew due to customized marketing
and referral incentives.It's possible that Mr. "X" prefers Crest toothpaste, Denim toilet
soap, and Halo shampoo, whereas Mrs. "X" would like Pepsodent toothpaste, Lux
soap, and Sun silk shampoo. People's tastes in food, clothes, books, periodicals, and
recreational activities, as well as methods of conserving money and the retail outlets
from which they choose to purchase, may vary widely, not only among family
members but also among friends, neighbours, and coworkers.Every customer is an
individual, and this individuality is mirrored in their purchasing habits, patterns, and
methods. We can learn a lot about why people purchase and use goods and services
differently when we examine consumer behaviour.

CONCLUSION
Organizational success depends on both the organization's micro and macro-
environment. Despite the fact that they are so different, they compliment each
other.Environmental scanning encompasses both macro and micro settings.
Environmental scanning is a part of a broader process of environmental assessment on
a global scale. Despite the fact that most studies focus on the macro environment, the
micro environment nevertheless has a significant effect. To summarize, the macro
environment includes industries, businesses, markets, customers, and rivals, while the
micro environment includes suppliers, competitors, and consumers.

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