ANALYZING THE MACROENVIRONMENT

ANALYZING THE MACROENVIRONMENTCinderella M. Constantino1

ANALYZING MACROENVIRONMENT

Analyzing the purpose of macroenvironment is to identify the possible opportunities and threats in the industry.2NEEDS AND TRENDSFAD is unpredictable, short-lived, and without social, economic and political significance.TRENDS more predictable and durable than a fad. Its reveal the shape of the future and can provide strategic direction.MEGATREND is a large social, economic,political and technological change.

3Six Major Forces in a Broad EnvironmentDemographic EnvironmentEconomic EnvironmentSociocultural EnvironmentNatural EnvironmentTechnological EnvironmentPolitical Legal Environment

Well describe them separately, but remember that their interactions will lead to new opportunities and threats. For example, explosive populationgrowth (demographic) leads to more resource depletion and pollution (natural), which leads consumers to call for more laws (political-legal), which stimulate new technological solutions and products (technological) that, if they are affordable (economic), may actually change attitudes andbehavior (social-cultural).4The Demographic Environment

- monitor population including: World wide population growthPopulation age mixEthnic and other marketsEducational growthHousehold patterns

WORLDWIDE POPULATION A growing population 5The Economic Environment

Consumer psychologyIncome distributionIncome, savings, debt and credit

The Sociocultural EnvironmentViews of ourselvesViews of othersViews of organizationsViews of societyViews of nature Views of universe

Views of ourselves self gratificationViews of others socially concernedViews of organizations toward corporationViews of society toward societyViews of nature toward nature Views of universe - origin of the universe

7Other Cultural CharacteristicsHIGH PERSISTENCE OF CORE CULTURE VALUES- The people living in a particular society hold many core beliefs and values that tend to persist.

EXISTENCE OF SUBCULTURESEach society containssubcultures,groups with shared values emerging from their special life experiences or circumstances.

The Natural Environment - natural resources that are needed as inputs by marketers or that are affected by marketing activities Water, forests, oil, coal, minerals

As resources become more scarce,cost increase

The deterioration of the natural environment is a major global concern.Marketers must be aware of the threats and opportunities for the trends from natural environment9The Technological EnvironmentAccelerating pace of changeUnlimited opportunities for innovationVarying R&D budgetsIncreased regulation of technological change

Innovations long-run consequences are not always foreseeable. The contraceptive pill reducedfamily size and thus increased discretionary incomes, also raising spending on vacation travel,durable goods, and luxury items. Cell phones, video games, and the Internet are reducing attentionto traditional media, as well as face-to-face social interaction as people listen to music or watch amovie on their cell phones.10The Political Legal EnvironmentIncrease in business legislationGrowth of special interest group - consumerist movement organized citizensand government to strengthen the rightsand powers of buyers in relationshipto sellers.

The political and legal environment consists of laws, government agencies, and pressuregroups that influence various organizations and individuals. BUSINESS LEGISLATION - is intended to protect companies from unfair competition, protect consumers from unfair business practices,protect society from unbridled business behavior, and charge businesses with the social costs oftheir products or production processes.11