Back 2 School
Behaviour and Market Research
Macro-Environment Forces (DENTPC)
The macro - environment of any business consists basically
of six factors:
The first macro environmental force that marketers monitor
is the population, because people make up the markets. Marketers
are keenly interested in the size and growth rate of population
in different cities, regions and nations, age distribution
and ethnic mix.
The economic environment looks into the available purchasing
power in an economy, which depends on the current prices,
savings, debt and credit availability. Marketers must pay
close attention to the major trends in income and consumer
Marketers need to be aware of the threats and opportunities
associated with the four trends associated in the natural
environment - the shortage of raw material, the increased
cost of energy, the increased levels of pollution, and the
changing role of the governments.
One of the most dramatic forces shaping peoples lives
is technology. Even new technology is a force for "creative
destruction." New technologies that provide superior
value in satisfying needs stimulate investment and economic
activity. In the meantime minor innovations fill the gap.
Minor innovations involve less risk but critics argue that
too much research effort is going into producing minor improvements
rather than major breakthroughs. New technology creates
major long-run consequences that are not always foreseeable.
Political / Legal Environment
Marketing decisions are strongly affected by the developments
in the political and legal environment. This environment
comprises of the laws, government agencies and pressure
groups that influence and limit various organisations and
Social / Cultural Environment
The society in which people grow shapes their beliefs, values
and norms. People absorb, almost unconsciously, a wide view
that defines their relationship with themselves, others,
nature and the universe.