Question

Explain the various factors of the Immediate and Marco environments. What role do they play in the marketing plan?

Answer 1

Macro Environment in Marketing Plan :

The macro environment audit examines the broad range of environmental issues that may affect the Organization. This will include political/legal issues, economic factors, social/cultural issues, and technological developments. This is normally referred to as PEST ( Political, Economic, Social and Technological ) analysis.

Political/ legal factors :

It focuses on taxation policy, monopoly controls, environmental protection measures, Employment Law, environmental legislation, Foreign trade agreements, and the stability of the government system.

Economic factors :

It focuses on interest rates, inflation rates, money supply, business cycles and unemployment. Economic factors have to be viewed from a wider perspective than the Organization's domestic economy. Issues such as conservation of natural resources,costs of pollution, energy consumption and the whole area of the management of natural resources should be considered.

Social/cultural factors :

It focuses on age profile, social mobility, changes in lifestyles, family structures, levels of education, work behaviour, leisure activities, distribution of income, patterns of ownership, attitudes and values.

Technological factors :

It focuses on Government research, rate of technology transfer, materials, and developing technological processes. Identifying new technologies that can service the customer needs more completely and economically is the critical part of the analysis.

Immediate Environment in Marketing Plan :

It comprises of all those Organizations and individuals who directly affect the activities of a company. All the factors which impact directly on a firm and its activities are in relation to a particular market.

1. Suppliers :

Suppliers are either individuals or business houses. They provide necessary resources to the company. The developments in the suppliers environment have a substantial impact on the marketing operations of the company. Companies can lower their supply costs and increase product quality to gain competitive advantage in the market. Supply shortages have to be fully monitored and plans should be made to avoid it.

2. Market Intermediates :

They help the company in promoting, selling and distributing the goods to customers. They are middlemen, distributing agencies, market service agencies and financial institutions.

3. Customers :

The target market of the company is of five types.

• Consumer market ie. Individuals and householders
• Industrial market ie. Organizations buying for producing other and services
• Reseller market Organizations buying goods and services with a view to sell them to others.
• Government and other non profit markets ie. those buying goods and services in order to produce public services.
• International markets ie. Individuals and organizations of nations other than homeland who buy for either consumption or industrial use.

4. Competitors :

The competitive environment consists of certain basic things which every Marketing Manager has to take note of. This helps the company in facing host of competitors with confidence. The company in order to come out successfully has to adopt means which may help it to outmanuever.

5. Public :

Public is defined as ' any group that has an actual or potential interest in or impact on a company's ability to achieve its objective. The actions of the company do affect the interest of other groups ie.those who form the general public for the company who must be satisfied along with the consumers of the company.