• Forex Trading

Any company’s mission, vision, and objectives depend in large part on the environment. Any company should take social responsibility making sure that any of the products or services produced isn’t harmful to the society and environment. In other words, they are the driving force behind your business, without whom neither product nor service is possible. To achieve economic success, you definitely have to consider the qualifications (continuous development) and motivation of your employees. Business activities are bond to suffer if enterprises do not adopt up-to-date technology as and when necessary.

Marketing intermediaries assist companies promote, sell, and distribute goods. They include resellers, distributors, marketing services agencies, and financial intermediaries. The pricing patterns of their key inputs must also be monitored by marketing managers.

Competitive Environment

No entity can function in isolation because there are many factors that closely or distantly surrounds the business, which is known as a business environment. It is broadly classified into two categories, i.e. microenvironment, and macro environment. The former affects the working of a particular business only, to which they relate to, while the latter affects the functioning of all the business entities, operating in the economy. Political forces shape every nation, and it’s a big consideration for all marketers. Political forces are often a consideration that is ignored by larger companies, only for them to be forced to spend millions of dollars later on legal fees when local governments litigate[6]. Uber is a prime example of a large company that moved into municipalities and ran its business its own way, uncaring about local laws.

The marketers have special interest in the demographic environment because it consists of people and people are the driving force for development of markets. The large and diverse demographics offer both opportunities as well as challenges for businesses. Legal factors in the external environment macro environment consists of often coincide with political factors because laws are enacted by government entities. This does not mean that the categories identify the same issues, however. Although labor laws and environmental regulations have deep political connections, other legal factors can impact business success.

level of competition

An especially influential aspect of GDP is corporate profits for the economy, which is another measure of an economy’s comprehensive productivity. Opening your business without the initial capital, you should calculate all the financial risks. However, by accepting funding from investors, you give up some control and burden yourself with constant reporting of actions.

The marketing of a particular product largely depends upon two factors- the ability of the consumers to spend and their willingness to spend. In conclusion, success of any marketing campaigns is highly dependent on the micro and macro environmental factors. Any strategic marketer should have an in-depth consideration of these factors for any decision making. Considering these factors can boost the success rates of marketing campaigns for any organization as well as increase the reputation of brand in long term.

How does the macro-environment affect the business

It was well received because the meat was such a luxury to everyday Chinese residents at the time, and then came a foreign chicken restaurant with large pieces of chicken being sold for reasonable prices[4]. KFC took a strategic loss in the early years because they were burying themselves into the local culture. This paid off and has resulted in there being more KFCs in China today than McDonald’s and Burger King combined. By the time McDonald’s entered, the market wasn’t desperate for them, and it was difficult for McDonald’s to scale to the level needed to make a profit when selling hamburgers so cheaply. They failed so miserably that they had to sell their restaurants to a local company that now runs Chinese McDonald’s restaurants. This local company called ‘Golden Arches’ runs all McDonald’s restaurants in China, all because they messed up the timing of their market penetration.

This includes indicators such as GDP, inflation rates, interest rates, employment levels, and income distribution. Economic factors have a profound impact on consumer purchasing power, demand for products and services, and business investment decisions. Non-economic environment includes political system, government policies, legal framework social system, cultural values, demographic factors, technological development and natural environment of the country. The public refers to the group of people who have an actual or potential interest in company’s product or who can have an impact on the organizations ability to achieve its objective. When studying the external marketing environment, there the macro environment is extremely important to know. The macro environment consists of uncontrollable external forces that affect the environment as a whole.

Micro environment

Marketers should be the ones to watch trends and look for opportunities more than any other department in the firm. Although every management in a company must be aware of the outside world, marketers have two unique skills. They have organized ways to gather data about the marketing environment, including marketing research and marketing intelligence. The individuals and forces that influence a company’s marketing management’s capacity to create and sustain successful interactions with its target customers are referred to as the marketing environment. Sociocultural factors involve societal norms, values, attitudes, and demographics. Understanding sociocultural trends is crucial for businesses to adapt their marketing strategies to changing consumer demands and cultural expectations.