Macro-Environement

Question 1

Name the 6 Factors in the Macro-Environment

Answer 1

Demographic, Economic, Natural, Technological, Political-legal, Cultural

Question 2

Define the Demographic Environment (2 parts) and give the 4 key trends(with detail)

Answer 2

• The study of the human population, which involves a diverse range of people who make up the consumer market.

Age Structure
Baby Boomers (46-64)
Gen X(65-76)
Gen Y/ Millenials(77-2000)
Gen Z(2000+)

Geographical Shifts(e.g Urbanisation)

Cultural Diversity

Better educated population.

Question 3

Define economic environment (2 key impacts).
Give 5 key examples.
How are they monitored and predicted.
Define value marketing.

Answer 3

Economic environment are the external factors that effect individuals spending patterns and purchasing power.

-Output(GDP), business cycles, wealth distribution, unemployment, Interest rates.

Economic forecasting.

Offering consumers the greatest perceived value in the current economic environment.

Question 4

Define the Natural Environment and give the 3 key nature trends.

Answer 4

-The physical environment and natural resources that provides the inputs needed needed to produce products, and are affected by a firms activities.

• Climate change
• Increased government intervention in the environment
• Shortage of raw resources

Question 5

Define the Technological Environment, give 3 examples of this, and why is is important.

Answer 5

The forces that create technological change, which impacts what products can be produced and what market opportunities there are related to technology.

• Blockchain, AI, Robotics.
• Most dramatic force in todays macro-environment.

Question 6

Define the Political-Social Environment, give 3 PS variables and explain what marketing strategy it is linked to.

Answer 6

• The laws, government agencies and pressure groups that impact a firms decisions.
• Legislation, government policy & business ethics.
• Related to cause related marketing (doing well by doing good), whereby acting in a socially responsible way will aid your profits in the long run.

Question 7

Define the Cultural Environment, the 2 types of beliefs and values, what they effect and the 5 cultural variables.

Answer 7

• The Institutions and other forces that affect societys basic values, beliefs, perceptions and behaviours.

CORE BELIEFS & VALUES
- Relatively permanent and well established, passed on by parents and rienforced by key institutuions

SECONDARY BELIEFS & VALUES
- More changeable, such as view on firms.

These affect an individuals attitudes and behaviours.

• View of others (interaction)
• View of firms(activities)
• View of Society(Patriots vs reformers)
• View of Nature(Sustainability)
• View of Universe(Religion)

Question 8

Name and define the 3 types of response to the Macro Environment.

Answer 8

Uncontrollable - React and adapt to environment
Reactive- Watch and adapt to environment
Proactive - Take aggressive actions to affect your external environment.