The effect that marketing policies and strategies have on the economy and society as a whole. Specifically, Macro Marketing refers to how product, price, place, and promotion strategies the four P’s of marketing– create demand for goods and services, and thus influence what is produced and sold in the economy. Macro environment is less controllable. It consists of much larger all-encompassing influences that impact the microenvironment but from a broader global society perspective. These are also called a PESTLE framework.
Macro Marketing Strategy:
1. Advertising: It is the best possible way to reach to the targeted audience. The company can promote its products by placing them on popular websites. And advertising is considered as the most favorable method to increase sales and to promote the products.
2. Product Features: The company tries to offer new features in their product based on the new trends in society. They try to differentiate their products from others so that they can offer new things to the customers.
3. In-store availability: The stores should carry your products and should supply enough products to meet the demand of the customers. The stores carrying your products should be appropriate. The owner of the store should have relevant information about the product so that it can explain to the customers about the product.
4. Packaging: Packaging should be in such a way that it attracts the customers. It should display the majority of product features that the society is looking for.
The macro-environment encompasses all of the relevant factors making up the broad environmental context in which a company operates. By relevant we mean factors that are important enough that they should shape the management’s decisions regarding the company’s long-term direction, objectives, strategy and business model. The impact of macro-environmental factors on a company’s choice of strategy can be big or small but even if the factors of the macro-environment change slowly or are likely to have a low impact on a company’s business situation, they still merit a watchful eye.
The following are the 5 factors over which the company has no control. Henceforth, it has to frame its policies within the limits set by these factors.
A company always study about population, its distribution, groupage before making any marketing strategies. For example, The Indian market is the second-largest in the world considering its population. If consumption is considered, it has one of the lowest levels of consumption. Hence, it can be said that the majority of the market for various products has been left untapped.
2. Economic Environment
Economic conditions include the general economic climate and specific factors such as interest rates, exchange rate, inflation rate, etc. The company’s sales depend on whether people can afford them or not. Economic environment plays an important role as it can affect purchasing power.
For example: Due to inflation the value of money decreases. Hence, it can affect the market as the customers won’t be able to buy more products.
3. Physical Environment or Natural Forces
A company embraces its policies according to the limit set by nature. The resources are limited. The production manager tries to utilize available resources. If not utilized properly the company may face a shortage of resources.
For example: Petroleum products, power, etc.
4. Technological Factors
Usually, customers think that the improvement in technology will lead to an increase in the standard of living. Every newly launched product with new technologies builds a new market and new groups of customers.
For example: Smart tv, phones, mixture, etc.
5. Social and Cultural Factors
Most of the customers gets influence by social and cultural factors and purchases the products. The individual lifestyle, believes, etc depends and changes on the basis of the society in which we live. Each society has its own different cultures. Culture is transferred from older to the new generation. Our behavior is managed by culture, family, education, etc. society is a combination of various different cultures and subcultures. And each society has its own behavior. So before taking any decision the marketing manager needs to study the society precisely.
For e.g. The marketing manager studies different cultures like Assamese, Punjabis, etc. to make a strategic plan to influence the customers to purchase their product.
External macro environment has a significant impact on the success of marketing activities, and therefore such environmental factors must be considered in-depth during the process of creating a strategic marketing plan.
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