List 5 factors that make up Micro-Environment and Macro-Environment. And give examples?


1 Answers

Sarah Devine Profile
Sarah Devine answered
Micro environments and macro environments are both marketing terms. Where one is refers to the closer impacts on a company and its sales with customers, the other looks at the effects of business on a wider scale.

Macro environments are concerned with the external factors in a business and those that are uncontrollable. These must be taken into consideration when an organization is creating its marketing strategies to create a tolerance for such things.
The main factors of this marketing type include:

  • Demography - this focuses on human population and is highly important to the marketing of any business to understand profits and what marketing strategies work best in particular areas.
  • Natural environment fits into macro environment also - As the name suggests, it looks at the natural resources that the company uses for the likes of production. This term is widespread and also includes Government issues which may affect marketing tactics.
  • Culture - This is an important factor as different cultures communicate in different ways. They also vary dramatically in different areas.
  • Economics - Understanding the economics of different areas and places helps a company understand their spending trends. This prevents profit loss and money wastage through ineffective marketing.
Micro environments focus in on the internal aspects of an organization. Every department within has a profound impact on the company's marketing. This includes:

  • Research and development - The results of research within a business with obviously affect how the company markets itself and where certain types of marketing are required. In effect, the development works in the same way especially in terms of products.
  • Finance - This will concern in particular, the budget and spending ability of the marketing strategies.
  • Competitors - It is very important to understand what other similar businesses are offering your prospective customers and how they are marketing it. Having some knowledge on their costs is also noteworthy.

Answer Question