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

Macro Marketing Environment is also called the external factors which effects the marketing environment.

the external business environment is comprised of factors which are beyond the control of a business. A marketer has little to no control over these factors.

They can also vary at any time without any prior warning, often leaving the marketers in the lurch. As a result, marketers have to constantly update and revise their strategies to keep up with marketing trends.

Customers

Customers are essential for every business to survive. You cannot possibly sell your products and services if you have no loyal customer base.

The purpose of every business is to fulfill the needs and demands of a specific section of society.

Customers of every business have their own unique demands and requirements. Therefore, all the marketing strategies are customers oriented in some way or another.

Marketers strive to understand what their customers desire through these marketing campaigns. Based on their findings, they come up with the best possible products to serve their customers.

Demographics

Businesses that ignore to incorporate demography of their targeted audience in their marketing strategy are meant to fail. After all, your business is all about the people and how to serve them.

Before making your marketing strategy, you must study the target populace and its age structure, conveyance, purchasing power and so on and so forth.

This is essential because different factions of the populace rely on different things and factors. Similarly, they have their own customs, traditions, and ways of living.

You can launch the products which meet the most basic needs of the buyers if you measure each of the above variables and combine the result. It is rightly said that:

“To comprehend the business sector you must comprehend its demography.”

Economic Environment

Some of the most important economic factors that influence marketing efforts are investment rates, monetary values, inflation rate, exchange rate, the balance of power and fiscal strategies, etc. For instance, individuals will only buy your products when they have money to spend.

The financial environment either expands the disposable income of an individual or decreases it, greatly influencing his purchasing behaviors.

The value of money decreases during inflation, making it harder for people to buy more products. Likewise, you should also consider the average income of a person.

A couple will have greater purchasing power if both partners work.

You may be able to sell your products effortlessly to such people as compared to single parents with negligible income.

Physical Environment

The physical environment includes factors like the accessibility of raw materials, availability of water, atmosphere, climate, and environmental change.

Your organization should implement its marketing strategy according to the constraints set by nature.

Nature does offer resources but in a constricted manner. It is important for you to use these resources proficiently.

You have to find the best use of resources to manufacture products which are accessible to all and sundry. Natural resources are exhaustible and therefore, you should use them carefully otherwise, you will eventually run out of them.

Political and Legal Factors

The market environment experiences many changes whenever a new political party comes into power.

The new government may increase or decrease tax and duties. It may also totally change the business codes and practices, trade policies and marketing regulations.

Your company has to comply with new rules and regulations willingly or unwillingly.

Any defiance in this regard can result in hefty fines and penalties.

Subsequently, your marketing strategy should also observe the relevant code of conduct to avoid any fiscal punishment or sanctions.

Social and Cultural Factors

Cultural and social elements influence our decision when it comes to buying something. Businesses have to take special care while creating commercials to avoid hurting the sentiments of the people they consider as their target audience.

They also have a greater responsibility towards society in general. Nowadays, people also expect companies to construct parks, hospitals, and public conveniences.

Some companies also sponsor education and health care. It has become increasingly important for organizations to invest in the general welfare of the public.

Otherwise, people will not buy from them, no matter how good their marketing strategy is.

Another thing organizations cannot ignore while structuring their marketing strategy is culture. Every marketing manager must thoroughly investigate and study the culture in which he wants to promote the products.

For example, there are many cultural groups in Pakistan such as Punjabis, Sindhis, Balochs, Pakhtoons and Kashmiris.

The marketing manager must observe various cultural practices and distinctions before finalizing his marketing campaign.

Technological Factors

The ever-changing technology has put the businesses into bigger trouble. They have to keep themselves updated with the latest technological developments to manufacture products which people actually like or want.

Those companies which do not take these changes seriously quickly go to oblivion where Nokia is the best example.

Similarly, innovative and technologically advanced products have become synonymous with better living standard