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Marketing G 11 q1 mod5 Macro-and-Micro-Environment v5-R

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Principles of Marketing
Quarter 1 – Module 5:
Macro and Micro Environment

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Principles of Marketing – Grade 11


Alternative Delivery Mode
Quarter 1 – Module 5: Macro and Micro Environment
First Edition, 2020

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Published by the Department of Education


Secretary: Leonor Magtolis Briones
Undersecretary: Diosdado M. San Antonio

Development Team of the Module

Writer : Charina C. Dizon


Editor : Hazel May S. Barcial
Reviewer : Annie Rhose C. Rosales
Illustrator : Charina C. Dizon
Layout Artist : Charina C. Dizon
Cover Design : LRMDS BATAAN

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Principles of Marketing
Quarter 1 – Module 5:
Macro and Micro Environment

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Introductory Message
For the facilitator:

Welcome to the Principles of Marketing – Grade 11 Alternative Delivery Mode

(ADM) Module on Macro and Micro Environment !

This module was collaboratively designed, developed and reviewed by

educators both from public and private institutions to assist you, the teacher or

facilitator in helping the learners meet the standards set by the K to 12 Curriculum

while overcoming their personal, social, and economic constraints in schooling.

This learning resource hopes to engage the learners into guided and

independent learning activities at their own pace and time. Furthermore, this also

aims to help learners acquire the needed 21st century skills while taking into

consideration their needs and circumstances.

In addition to the material in the main text, you will also see this box in the

body of the module:

Notes to the Teacher


This contains helpful tips or strategies that
will help you in guiding the learners.

As a facilitator you are expected to orient the learners on how to use this

module. You also need to keep track of the learners' progress while allowing them to

manage their own learning. Furthermore, you are expected to encourage and assist

the learners as they do the tasks included in the module.

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For the learner:

Welcome to the Principles of Marketing – Grade 11 Alternative Delivery Mode


(ADM) Module on Macro and Micro Environment!

The hand is one of the most symbolized part of the human body. It is often
used to depict skill, action and purpose. Through our hands we may learn, create
and accomplish. Hence, the hand in this learning resource signifies that you as a
learner is capable and empowered to successfully achieve the relevant competencies
and skills at your own pace and time. Your academic success lies in your own hands!

This module was designed to provide you with fun and meaningful
opportunities for guided and independent learning at your own pace and time. You
will be enabled to process the contents of the learning resource while being an active
learner.

This module has the following parts and corresponding icons:

What I Need to Know This will give you an idea of the skills or
competencies you are expected to learn in the
module.

What I Know This part includes an activity that aims to


check what you already know about the
lesson to take. If you get all the answers
correct (100%), you may decide to skip this
module.

What’s In This is a brief drill or review to help you link


the current lesson with the previous one.

What’s New In this portion, the new lesson will be


introduced to you in various ways such as a
story, a song, a poem, a problem opener, an
activity or a situation.

What is It This section provides a brief discussion of the


lesson. This aims to help you discover and
understand new concepts and skills.

What’s More This comprises activities for independent


practice to solidify your understanding and
skills of the topic. You may check the
answers to the exercises using the Answer
Key at the end of the module.

What I Have Learned This includes questions or blank


sentence/paragraph to be filled in to process
what you learned from the lesson.

What I Can Do This section provides an activity which will


help you transfer your new knowledge or skill
into real life situations or concerns.

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Assessment This is a task which aims to evaluate your


level of mastery in achieving the learning
competency.

Additional Activities In this portion, another activity will be given


to you to enrich your knowledge or skill of the
lesson learned. This also tends retention of
learned concepts.

Answer Key This contains answers to all activities in the


module.

At the end of this module you will also find:

References This is a list of all sources used in developing

this module.

The following are some reminders in using this module:

1. Use the module with care. Do not put unnecessary mark/s on any part of the
module. Use a separate sheet of paper in answering the exercises.
2. Don’t forget to answer What I Know before moving on to the other activities
included in the module.
3. Read the instruction carefully before doing each task.
4. Observe honesty and integrity in doing the tasks and checking your answers.
5. Finish the task at hand before proceeding to the next.
6. Return this module to your teacher/facilitator once you are through with it.

If you encounter any difficulty in answering the tasks in this module, do not
hesitate to consult your teacher or facilitator. Always bear in mind that you are
not alone.

We hope that through this material, you will experience meaningful learning
and gain deep understanding of the relevant competencies. You can do it!

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What I Need to Know

This module presents ideas and information on macro and micro environment
which covers the elements and their influence to marketing planning. It will help
learners to understand the internal and external forces that influences the ability of
the company to develop and maintain relationship with the target customers.

At the end of the lesson, the learners will be able to:


1. Analyze the elements of macro and micro environment and their influence to
marketing planning .ABM-PM11-le-i-10;and
2. Differentiate macro from micro environment.

What I Know

Constructing characteristics of macro and micro environment. Use the table below by
expressing your thought by writing YES or NO to the desired column.

CHARACTERISTIC MACRO MICRO

1. nearby environment
2. general environment
3. short term influence
4. factors affecting all business entities
5. factors affecting directly
6. COSMIC
7. PESTLE
8. variables are uncontrollabe
9. factors are controllable
10.dynamic in nature
11. outside forces
12. competitors as an element
13.associated with a small area
14. with direct impact on business
15. indirect influence

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Lesson Macro and Micro


5 Environment

Every business organization is a part of the business environment, within

which it operates. No entity can function in isolation because there are many factors

that closely or distantly surrounds the business, which is known as a business

environment. It is broadly classified into two categories,

i.e. microenvironment, and macro environment. The former affects the working of

a particular business only, to which they relate to, while the latter affects the

functioning of all the business entities, operating in the economy.

While microenvironment has a direct impact on business activities, the macro

environment is a general business environment, which influences all business

groups at large. It is important to learn the business environment, so as to

understand the effect of various forces on business.

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COMPARISON CHART

BASIS FOR MICRO MACRO


COMPARISON ENVIRONMENT ENVIRONMENT

general
defined as the environment that
nearby environment, can effect the
Meaning
under which the working of all
firm operates business
enterprises

COSMIC PESTLE(political,ec
(competitors, onomic, socio
Elements organization.supplie cultural,technologic
rs,market,intermedi al, legal and
aries and customers environmental

Nature of Elements specific general

Are these factors Yes, but to some


controllable? No
extent only

directly and indriectly and


Influence regularly distantly

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What’s In

Using the graphic organizer below, fill in the corresponding internal and external
factors (elements) affecting the business. Word of pool is provided for your ready
reference.

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“ KEEP AN EYE ON THE DYNAMICS OF MARKETING


ENVIRONMENT."

(Dizon, C. 2020)

What’s New

Marketing Environment

Food industry is a complex and dynamic type of business offering diverse

food consumed by the world’s population. It is globally competitive industry which

covers from food preparation, packaging and even preservation. However, though

big business deals into it, they are not excused from the existing factors that greatly

influence their operations. This is mainly cause by internal and external forces.

Some of the uncontrollable factors that impacted food industry include: political,

economic, socio-cultural, technological, legal and environmental.

Your task now is to list the P.E.S.T.L.E factors that could influence food

industry’s marketing strategy. Use the given graphic organizer below to complete

your data.

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POLITICAL
1.
2.

ECONOMIC
1
2

SOCIO-CULTURAL
1.
2.

TECHNOLOGICAL
1.
2.

LEGAL
1.
2.

ENVIRONMENTAL
1.
2.

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What is It

Microenvironment refers
to the environment which
is in direct contact with
the business organization The microenvironment is a
and can affect the routine collection of all the forces that
activities of are close to the firm. These
business straight away. It forces are very particular for
is associated with a small the said business only. They
area in which the firm can influence the performance
functions. and day to day operations of
the company, but for the short
term only. Its elements include
suppliers, competitors,
marketing intermediaries,
customers and the firm itself.

• Suppliers are the ones who provide inputs to the business like raw material,
equipment and so on.
• Competitors are the rivals, which compete with the firm in the market and
resources as well.
• Marketing intermediaries may include wholesalers, distributors, and
retailers that make a link between the firm and the customers.
• Customers / Consumers are the ones who purchase the goods for their own
consumption. They are considered as the king of business.
• The firm itself is an aggregate of a number of elements like owners like
shareholders or investors, employees and the board of directors.

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The general environment within the


economy that influences the
working, performance, decision
making and strategy of all business
groups at the same time is known
as Macro Environment. It is
dynamic in nature. Therefore it
keeps on changing.

It constitutes those outside forces


that are not under the control of
the firm but have a powerful
impact on the firm’s functioning.
It consists of individuals, groups,
organizations, agencies and others
with which the firm deals during
the course of its business.

The study of Macro Environment is known


as PESTLE Analysis. PESTLE stands for
the variables that exist in the
environment, i.e. Political, Economic,
Socio-cultural, Technological, Legal and
Environmental. These variables, consider
both economic and non-economic factors
like social concerns, government policies,
family structure, population size,
inflation, GDP aspects, income
distribution, ethnic mix, political stability,
taxes, and duties.

Grounded by these information, categorize the following terms below either


macro or micro environment by putting a tick (/) for macro and an X for micro in
the space provided before each number.

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__________1. Taxes
__________2. Supplier
__________3. Dynamic
__________4. Direct contact
__________5. Retailer
__________6. Inflation
__________7. Ethnic mix
__________8. Short term
__________9. Family structure
__________10. Customers

What’s More

Guided by its meaning in Column A , determine the best answer provided in column
B by drawing a line linking column a to column b .

COLUMN A COLUMN B

1. direct contact a. suppliers

2. competitors b. customers
3. marketing
c. share holders
intermediaries
4. distribution of income d. macro environment

5. provide inputs e. micro environment

6. government legislation f. rivals

7. firm g. economic factor

8. dynamic in nature h. political

9. living lifestyles i. distributors

10. king of business socio-cultural

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What I Have Learned

Below are the major differences between macro and micro environment. Fill in the

missing words to complete the expressions.

1. The a. ____________________ is the environment which is in immediate contact

with the firm. The environment which is b. ____________________ to a particular

firm but can influence the working of all the business groups is known as c.

____________________.

2. The factors of the microenvironment affect the d. ____________________ only,

but the macro-environmental factors affect e. ___________________ the

business entities.

3. The micro environmental factors are f. __________________ by the business but

to some extent only. However, the macroeconomic variables are g.

___________________.

4. The elements of the microenvironment affect h. _________________ and

regularly to the firm which is just opposite in the case of the macro

environment.

5. The study of the microenvironment is described as i. __________________

analysis. Conversely, j. __________________ Analysis is a study of the macro

environment.

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What I Can Do

Using the diagram below , put an X to the word/s that does not belong to the group.

political
economic
legal
market
inflation
taxes
direct contact

retailer
supplier
customers
legal
environmental
organization
rival
economic

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Assessment

Directions: Below are jumbled letters related to macro and micro environment.
Rearrange it to make a meaningful word/s.

1.

T N E M N R E V G O E L I G S A L I T N O

2.

M A F Y L I T S E R C U R T U

3.

T N O C N U L L O R L A E B

4.

I O O C S U L C U T A R L

5.

S I E A R I D M E R T E I N

6.

S R E D L O H E R A H S

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7.

F N I N O I T A L

8.

R I D C E Y T L

9.

E N E G L R A

10.

R Y B N R E A

Additional Activities

Directions: Using the template provided below, craft a comparison chart between

macro and micro environment in terms of :

a. Elements

b. Nature of elements

c. Influence

d. Meaning

Comparison Chart:

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MACRO MICRO

Meaning

Elements

. .

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Nature of Elements

Influence

. .

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Additional
Activities: What I have
learned:
Macro Micro
Assessment:
What I Can Do: a. Micro
Meaning
1. Government environment
legislation Macro b. Not
General nearby
2. Family specific
1. Market
Elements structure c. Macro
2. Direct
3. Uncontrollable environment
PESTLE COSMIC contact
4. Socio cultural d. Particular
Micro
Nature of elements 5. Intermediaries business
6. Share holders 3. Legal e. All
General 7. Inflation 4. Environment f.Controllable
specific 8. Directly al g.
9. General 5. economic Uncontrollable
Influence 10.nearby h. Directly
Indirectly i. COSMIC
j. PESTLE
directly
What I Know:
What’s In:
Macro Micro
Macro
1. No YES
What’s More: 2. YES NO
What is It: 1. Political
1. e 2. Economic 3. NO YES
1. / 3. Socio cultural 4. YES NO
2. f 2. X
3. i 4. Technological 5. YES NO
3. /
4. g 4. X 5. Legal 6. NO YES
5. a 5. X 6. Environmental 7. YES NO
6. h 6. / Micro 8. YES NO
7. / 9. NO YES
7. c 8. X 1. Competitors 10. YES NO
8. d 9. /
2. Organization 11. YES NO
9. j 10. X
3. Supplier 12. NO YES
10. b
4. Market 13. NO YES
5. Customers 14. YES NO
6. intermediaries 15. YES NO
Answer Key
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References

Alcoran, Alaric Brian. Principles Of Marketing. Reprint, Philippines: Bookline


Publishing Corporation, 2018.

Ilano, A.B. Principles Of Marketing. Reprint, Philippines: Rex Book Store, 2017.

"Marketing Environment: Macro And Micro Marketing Environment".


Iedunote.Com, 2020. https://www.iedunote.com/marketing-environment.

S, Surbhi. "Difference Between Micro And Macro Environment (With Comparison


Chart) - Key Differences". Key Differences, 2020.
https://keydifferences.com/difference-between-micro-internal-and-macro-
external-environment.html.

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For inquiries or feedback, please write or call:

Department of Education – Region III,


Schools Division of Bataan - Curriculum Implementation Division
Learning Resources Management and Development Section (LRMDS)

Provincial Capitol Compound, Balanga City, Bataan

Telefax: (047) 237-2102

Email Address: bataan@deped.gov.ph

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