Question

Using examples to illustrate your answer, explain why it is so important for financial services organisations to consider the influences of the macro-marketing environment in developing their marketing strategies

Answer 1

FINANCIAL SERVICE ORGANIZATIONS & MACRO-MARKETING

Financial services are the economic services , which is provided by the financial organizations. It includes the management of money like. An example for financial services are: lending money to the public, checking of accounts, insurance facilities , deposits etc. Banking, wealth management, mutual funds, insurance, banking, advisory etc. Features of financial services are :

• Financial services are intangible
• customer oriented
• Perishable in nature
• They aid in distribution of risks.
• Bridges the gap between the investor and borrower.

Macro-marketing is the influence that marketing policies and strategies have on an economy and society . It is the set of external factors and forces, not controlled by the company. Macro environment includes : 1.demographic factors 2. economic factors 3. cultural factors 4. technological factors 5. legal factors 6. political factors .

INFLUENCE OF MACRO-ENVIRONMENT IN MARKETING STRATEGIES

There are many external factors that affects business and it's activities. Such factors influences the increase or decrease in the need for product. Also tends to create new product needs.

1. TECHNOLOGICAL FACTORS : Technological factor is one of the main factor which affects the marketing strategy of a business. Organizations have to make sure that they are well aware on the changing patterns of technology in both production and marketing fields. Nowadays , the pace of technological change constantly provides opportunities for new products. In financial organisations paper works of accounting transactions are gone and computer facility have implemented for an easier process of financial operations. So such technological changes have to be well known by the person before setting any marketing strategies.
2. DEMOGRAPHIC FACTORS : Demographic factors are yet another tool which affects the marketing field in an large extent. Demograohic forces includes : - Religion - country - age - education etc.   
3. ECONOMICAL FACTORS : These are the factors , which influences production of an organisation and along with that the decision making of consumer's.The economic forces relate to factors that affects the purchasing power and also the consumption patterns of a consumer. Such factors includes: - GDP, IMPORT DUTY , SALES TAX , VAT, INFLATION, UNEMPLOYEMENT ETC. Economical stability is the major drive which can facilitate the inflow of foriegn direct investment to the country. On the other hand instability in the economic factors can causes: - hyper inflation & - obsolete value of currency. Yet another factor is that the economic friendly policies , helps or plays a major role in decision making regarding whether to invest .
4. SOCIO-CULTURAL FACTORS : These are the factors which affects the basic values of a society. It is mainly based on the values and beliefs that people usually holds . So marketing strategies have to be developed only according to the social culture .
5. ECOLOGICAL FACTORS : Yet another factor in macro-environment is the ecological environment. These are the natural factors which affects the marketing strategy of an organization. Infact it says , the business man should have to well aware on the changing trends in ecological environment.   
6. LEGAL FACTORS : Investment decisions are to be affected by the legal factors in an large extent. Transparancy and predictability are very essential for the foriegn direct investors and also for the small scale business entreprenuers . A transparent and predictable regulatory frame work helps both the investors and businesses to measure their potential investments opportunities , to understand such decisions are profitable or not. Laws regarding intellectual property rights are also plays a major role in the organizations for developing marketing startegies.