Question

# Marketing Cource

• Describe to what degree and in what specific ways each of the six components of the ‘macro-environment’ is likely to impact the sales of the product/service you have selected. Be as specific as possible in your description of the likely impact in each instance.

Guidance: For each of the six categories of forces, students should identify the major trends that are most likely to have a positive or negative impact on the success of their product. Students must show how development of the marketing strategy for the chosen idea/product might have to be configured in order to fully leverage or minimize the impact of the particular trend identified. A net assessment of the impact (i.e., whether ‘positive’ or ‘negative’) should conclude the treatment of each category.

• Which are the competitive products? How would you differentiate yours?

Answer 1

For this question, the product that I have selected is textile products. Let us analyze the impact of each of the 6 components on its sales.

Demographic environment: Higher the population, higher will be the sales and vice-versa. The style perception of the people could also impact the sales up to a certain extend.

The company should study more about the tastes and preferences of the people and must resort to a marketing strategy that is closely linked to the interests of a particular section that forms the majority population in the area.

Economic environment: It refers to the impact of economic factors such as interest rate, tax, GDP, etc on sales. Sales will boost if interest rates, taxes, etc are favourable and there is adequate protection and subsidy from government's part.

It is advisable to focus stores in areas where the economic situations are more favourable.

Physical environment: It is advisable to sell the products in a physically viable market area. There must be incessant supply of raw materials, facilities for research and development, and proper product related infrastructure such as fabric testing centres. I will indirectly help in improving the sales by helping to produce better products at a cheaper rate.

Developed countries have better physical facilities than other nations.

Technological environment: Better the technological environment is, higher will be the sales , and vice versa. I will help us to use efficient machines for production at a cheaper rate. Low rate attracts customers and helps in boosting sales. It also helps in innovation.

Political and legal environment: More favourable political and legal environment can contribute to smooth and easy sales and vice-versa. Certain laws discourage production of certain textile items by reserving it only for certain category of people. In some regions, the taxes for textiles are very high and some nations put a bar on quantity produced and sold. Political favouritism to certain industries or political vendetta can also disrupt the production and sales.

Socio-cultural environment: Socio-cultural notions on clothing impacts its sales. Saree has a very high demand in India while boots are sold more on western countries. There must be regional differentiation while selling the products.

Similar textile industries offering same quality products are our competitors. However, the differentiation lies in branding and premium pricing method which attracts high-class customers.