the macro environment

1. THE MARKETING
ENVIRONMENT
THE MACRO ENVIRONMENT
By Izzah Azimah Binti Noh

2. The actors and forces outside marketing that affect
marketing management’s ability to build and maintain
successful relationships with target customers
THE MARKETING
ENVIRONMENT

3. The larger societal forces that affect:;
Demographic, Economic, Natural, Technological, Political
and Cultural forces or
TH E M A C RO E N V I RO N M E N T

5. DEMOGRAPHIC
 Demographics is the study of populations in term of
size, density, location, age, race, sex, income, education and etc.
 Changes in the world demographic environment have major
implication for business.
 Marketers need to analyse on demographic factor is:
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Change age structure
Family structures
Geographic population shifts
Educational characteristic
Population diversity

6. 1. CHANGE THE AGE
STRUCTURE
 Baby boomers (Born between 1946-1964)
 Most powerful forces shaping the marketing environment.
 Rethinking the purpose and value of their work, responsibilities and
relationships.
 Reach their peak earning and spending years.
 Constitute a lucrative market for marketers

7.  Generation X ( born between 1965 and 1976)
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Less materialistic than the other group.
More sceptical bunch.
Most educated generation to date
Posses hefty annual purchasing power
 Generation Y/ Millennial ( born between 1977 and 2000)
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Most financially strapped generation
Facing higher unemployment
Saddled with more debt
Yuppies
Nearly bankrupt
Utter fluency and comfort with digital technology

8. 2. FAMILY STRUCTURES
 The traditional household consist of husband, wife and children
(also grandparents)
 The changes of family institution structures also consist of nontraditional household:
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Married couples without children
Single living alone/ adults of one
Divorcing or separating
Not to marry
Marrying later
Marrying without attending to have children

9. ECONOMIC
 Economic environment consist of economic factors that affect
consumer purchasing power spending patterns
 Types of economic environment:
 Industrial economies
: constitute rich markets for many kinds of
goods.
 Subsistence economies : consume most of their own agricultural
and industrial output and other few market
opportunities.
 Developing economies : offer outstanding marketing opportunities
for the right kind of products

10. NATURAL ENVIRONMENT
 The physical environment and the natural resources that are
needed as inputs by marketers or that are affected by marketing
activities.
 Unexpected happenings in the physical environment (weather to
natural disaster)
 Trends:
 Involves growing shortages of raw materials
 Increased pollution
 Government intervention in natural resources management

11. TECHNOLOGICAL
 Technological forces include the impact that new technology can
have on a firm.

12. POLITICAL AND SOCIAL
 Consist of laws, government agencies and pressure groups that
influence or limit various organizations and individuals in a given
society.
 Reason of legislation regulating business:
 To protect company from each other
 To protect consumer from unfair business practices
 To protect interest of society against unrestrained behaviour

13.  Social responsible actions:
 Socially responsible behaviour
- Do the right thing from the behaviour of manager to the
workers in the company.
 Cause-related marketing
- To exercise their social responsibility and build more
positive images, many companies are now linking
themselves to worthwhile causes.

14. CULTURAL
 Consist of institutions and other forces that affect a society’s basic
values, perceptions, preferences and behaviors.
 The major cultural values of a society are expressed in people
view’s of:
 Themselves : people vary in their emphasis on serving themselves
versus serving other.
 Others
: people’s attitudes towards and interactions with others
shift over time.
 Organizations: people vary their attitudes towards coorperations,
government agencies, trade unions, universities and
other organization.

15.  Society
 Nature
 Universe
: people vary their attitudes towards their societypatriots defend it, reformers want to change it and
malcontents want to leave it.
: people vary their attitudes towards nature.
: people vary their beliefs about of the universe and
their place in it.

16. RESPONDING TO THE
MARKETING ENVIRONMENT
 Those who make things happen:
 Take aggressive actions to affect the publics and forces in
their marketing environment
 Develop strategies to change the environment
 Those who watch things happen:
 Passively accept the marketing environment.
 Do not try to change it.
 Those who wonder what’s happened:
 Confused to do an actions and failed to identify the problem
because of the environment changes

17. THANK YOU