Describe the factors or forces that are the components of Macro environment.
Answers
Answer:
The factors that make up the macro-environment are economic factors, demographic forces, technological factors, natural and physical forces, political and legal forces, and social and cultural forces.
Explanation:
The micro-environment is basically the environment that has a direct impact on your business. It is related to the particular area where your company operates and can directly affect all of your business processes. In other words, it consists of all the factors that affect particularly your business. They have the ability to influence your daily proceedings and general performance of the company. Still, the effect that they have is not a long-lasting one.
The micro-environment includes customers, suppliers, resellers, competitors, and the general public.
What is the macro-environment?
The macro-environment is more general - it is the environment in the economy itself. It has an effect on how all business groups operate, perform, make decisions, and form strategies simultaneously. It is quite dynamic, which means that a business has to constantly track its changes. It consists of external factors that the company itself doesn’t control but is certainly affected by.
The factors that make up the macro-environment are economic factors, demographic forces, technological factors, natural and physical forces, political and legal forces, and social and cultural forces.
The kind of customer base that your company attracts, as well as the reasoning behind purchasing your product, are going to highly affect the way you create marketing campaigns. Your customers can be B2C, B2B, international, local, and so on.
Important factors related to customers are:
Stability of demand
Prospects of sale growth
Relative profitability
Intensity of competition
Suppliers
If a supplier of a particular product is the largest, or even the only one, they are certainly going to have a big influence on how successful your business is.
The suppliers are extremely important factors as:
Key link in the value delivery process
Insurance that your business has the necessary resources
Essential determinants in terms of price increase or decrease
Resellers
If you decide to sell your product via a third party reseller, or middlemen such as wholesalers and retailers, then the success of your marketing is going to be highly dependent on them. If let’s say, a certain retail seller has a strong reputation, it will pass on to your product.
As a link between you and the customer, they are important in terms of these factors:
Promotion
Sale
Distribution
Marketing
Financial mediation