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Things your company can not control. a short view to macro-environment

Kirjoittanut: Omar Puebla Roldan - tiimistä FLIP Solutions.

Esseen tyyppi: Yksilöessee / 2 esseepistettä.

Principles of Marketing
Phlip Kotler
Esseen arvioitu lukuaika on 5 minuuttia.

The macroenvironment consists of border forces that affect the actors in the macroenvironment, and companies normally have no, or limited, influence on forces in the macroenvironment. As the company is unlikely to have any influence on these forces, it is important that companies scan the macroenvironment to stay in touch with what is happening.


Demographic environment

to understand this term, we need to understand what demographic is?

Demographic is the study of the human population in terms of size, density, location, age, gender, occupation, and other statics.

The demographic environment is a major interest to marketers because changes in demographics in the human population mean “changes in markets.”

The biggest demographics change is perhaps the changing age structure of the population.


We can define our target market according to the generation.


Baby boomers

refers to the people born during the demographic birth boom following World War II. The baby boomers cohort is defined as individuals born between 1945 and the very 1960s this group is associated with a rejection or redefinition of traditional values.


Generation X

The generation Xer’s definitions vary, but in most cases, they include people born between the early 1960s and the mid-1970s.

Generation Xers have been found to be particularly individualistic and have a critical mindset when it comes to commercialism and marketing. They are more skeptical of advertising that insults your intelligence because they were more exposed to marketing than early generations. As a result, they tend to research before, consider a purchase, and be less receptive to overt marketing pitches.


Generation Y

Also called Millenials are those born between the late 1970 and mid-1990. They are changing the way we look upon consumer and labor markets in many respects. They are comfortable with digital technology. These individuals have grown up in a branded society overcrowded with commercial messages and a never-ending supply of choices and opportunities. On consumers markets, they are demanding, aware of theirs rights, and generally not very loyal. They see a brand as ab. an integrated part of consumption and personal image-building.

Personal branding, which is easily managed through social media, comes naturally for them.

Generation y employees offer a good work environment, attractive terms, and the opportunity for personal development, they recruiting employees that fit the organization´s strategy and culture is necessary.


Generational  Marketing

do marketers need to create a separate product and marketing for each generation? Some marketers experts warm recommend being careful about turning off one age each time they craft a product or message that appeals effectively to another.

Defining people by their birth date may be less effective than segmenting them by their lifestyle, life stage, or the common values they seek in the products they buy. age alone may not be sufficient to segment a market unless the product is generic by nature.


Changing Family Structures

changing from the traditional family model of husband, wife, and children to another structure.

More people get a divorce and choosing not to marry, or live together with someone of the same sex.  Marketers must increasingly consider the unique needs of non-traditional households, and each group has distinctive needs and buying habits.



Geographic shifts in population


We are witnessing a period of great migratory shifts between and within countries. E.g., Swedes move from rural to metropolitan areas. Such population shifts interest marketers because people in different regions buy differently.


A better educated, more white. Collar and more professional population.


Consumers are becoming better educated and more aware of their rights. And they also have more tools available to compare prices and offers. These changes have contributed to a new attitude towards using consumer power in dealing with companies.


Economic environment


The economic environment consists of factors that affect consumer purchasing power and spending patterns.

Marketers must pay attention to significant trends and consumer spending patterns both across and within their world markets. Nation varies significantly in their levels and distribution of income. Some countries have more industrial economies, some are more subsistence economies, and some are more developing economies.


Changes in income and spending the relationship between income and spending is not as straightforward as one might think.

We can see the habits of consuming before and after the significant resection in 2008.


Consumer spending patterns


Food housing and. Transportation use up the most household income; however, consumer at different income levels have different spending patterns. Some of these differences were noted over a century ago by Ernt Engel. He found that as family income rises, the percentage spent on food declines, the percentage spent on housing remains about constant (except for such utilities as gas, electricity, and public services, which decrease ), and both the percentage spent on most other categories and that devoted to saving increase.


Changing cost structure

the economic environment is not only consumer spending. It is also about cost structures, but these are also constantly changing, and companies must make an effort to track cost structures in different markets on a continuous basis. Can be so many factors this can be changed, e.g., the cost of production of one product because they increase the salaries of the manufacture. New political regulation in the law.

Maybe the acquisition of one company from another company.


Ecological environment

the ecological environment involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities. Nowadays, companies worldwide are developing environmentally sustainable strategies in an effort to create a world economy that the planet can support indefinitely.


Environmental concerns have grown during the last past decades, so many cases around the world where industries were abusing natural sources like water, is the case of Flint in the United States and the water crisis, where a company poisoned the city’s only water source

with lead. the whole population in Flint were victims of bad practices of one company General Motors.


Many industries need to change their way of production, Airlines, the Fashion Industry, the Food Industry, and the Car Industry.


Many poor nations do little about pollution because of the lack of the needed funds or political will. Moreover, it makes it less attractive to sources since companies that take corporate social responsibility seriously are likely to avoid sourcing from suppliers that do not take sustainability issues seriously.


Technological environment


Consist in offers that create new technologies, new products, and markets opportunities. This involves robotics surgery, laptops, computers, antibiotics, weapons.


Nowadays we can find stores where is no need of to pay in the cashier, and a stroll can scan all the item you add and automated telling you the amount you need to pay and be charged to your credit, or smart home appliance is helping people home appliances help people with disabilities. A huge example is Alexa from amazon, and you have complete control of your house just with a voice command.

Marketers need to learn and adapt to the new techs and trends in the technology. I genuinely believe in the future, voice commands will do all the research, and the job of the marketers is how to do the job more quickly to the people find the correct information.


Political and social environment

Marketing decisions are strongly affected by development in the political environment, which consists of laws and reforms from governments agencies and groups that influence government. Like in the times of Corona, the restaurants, bars, and night regulations affected the opening hours, or not allowing to smoke inside bars or the reduction of emissions from cars.


Convenience regulations can encourage competition and ensure fair markets for goods and services.  Government develops Public Policy to guide commerce. Set of laws and regulations that limit business for the good of the society as a whole. Almost every marketing activity is subject to a wide range of laws and regulations.


Many companies want to be socially responsible. If we can check many companies’ web pages, they have a page where they talk about how they support social sustainability and the environment. However, event some companies claim and provide sustainability reports is questionable the practice they engage in. Many companies are far away from sustainability when they claim they do.


Socially Responsible Behaviour


Written regulations cannot possibly cover all the potential marketing abuses. Beyond written laws and registrations, businesses are also regulated by social codes and professional ethics. Enlightened companies encourage their manager to look beyond what the regulatory system allows and do the right thing. These socially responsible firms actively seek out ways to protect the long-term interest of their consumers and the environment.





  • Kamil

    Nice work Omar! Essay was easy to follow and informative, I like it. I would only add intro and summary.

  • Ella Muja

    Nice essay! Remember to cite your sources in the proper way (name, year, title,etc)

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