The macro environment refers to the external factors that leave a trace on the marketing campaigns and decisions. These forces cannot be controlled, which means that companies should be flexible enough to adapt to the fast changes that take place in the world. Today we are looking at a couple of macro environmental factors which influence marketing decisions.
Macro Environmental Factors Which Influence Marketing Decisions You Should Consider
Though it’s not the first thing that would come up in your mind, demographics are very important. A business can be affected, for instance, if the age distribution changes. The same happens if the household patterns change, or if the ethnicity statistics vary. A good business owner is keeping an eye on the population shifts. In this way, they can notice if people are leaving one area and moving to another, for instance.
2. Economic Factors
These refer to the elements that affect the spending patterns and the buying power. In this case, you should pay attention to the economic policies, the level of income, the economic resources, the distribution of income and wealth, etc. Check out if the economy is in a recession or an economic expansion.
3. Social and Cultural Factors
In every country, there is a set of cultural beliefs that spread from generation to generation. If there is any change that appears here, the consumer purchases will also be affected. In time, people change their preferences regarding exercise, eating, music, or entertainment. Consequently, this might affect your business or product as well.
4. Natural Factors
Other macro environmental factors which influence marketing decisions are the natural ones. The natural forces and resources are the most important ones. For example, global warming and the general weather conditions in the area.
5. Technological Factors
In the last decades, we have witnessed the rise of newer and newer technologies and processes. These can render one of your products or services unusable since people tend to go for the latest releases. An example is the huge array of electronics that appeared together with the evolution of the Internet. That’s why it’s important to be up to date with the latest advancements in your field.
6. Political Factors
This is yet another field that has been filled with turmoil in the recent years. Depending on your product, you should pay attention to the government legislation, actions, public policies or acts. They can affect a lot the marketing strategy of a company or a business. Don’t focus only on the local policies, but keep an eye on the regional, national, and international ones as well.
The last on our list of macro environmental factors which influence marketing decisions are the megatrends. These refer to the forces that affect the entire planet for several generations in a row. If you look at our history, you will notice the incandescent light bulb, the printing press, or the telephone to fall into that category. In our days, the Internet seems to be the most important megatrend to consider.
The factors we mentioned above are important because they affect not only your business but your competitors as well. For this reason, it’s good to prevent and to think ahead of the effects of social, cultural, political, or natural phenomena on the market.
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