1. Macro environment
Presented by Thabani Nkala
Business studies
201210178.
University of Johannesburg

2. MACRO ENVIRONMENT
Any company operates in a larger macro
environment of forces that shape
opportunities and pose threat to the
company.

3. There are six major forces in the
company’s macro environment:
• Demographic
• Economic
• Natural
• Technological
• Political
• Cultural

4. The Company’s Macroenvironment
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5. Demographic Environment
Demography is the study of human populations in terms of size,
density, location, age, gender, occupation, etc.
Demography environment is of major interest to marketers
because it involves people and people make up markets.
• Mobile industries launches handsets based on occupation.
• They also launches its product according to location.
• Sometimes industries launches its product keeping
gender factor in mind.

6. Economic Environment
Consumer
Psychology
Income
Distribution

7. Economic Environment
The economic environment consists of factors that affect
consumer purchasing power and spending patterns. Marketers
must pay close attention to major trends and consumer
spending patterns.
• As far as mobile industries are concerned, the
economic system is critical as it can control what the
organization is to produce, how it should produce and
the category of recipient who should use their end
products.
• Nokia has launched new handset Lumia 1020 in US not
in India as company is focusing more on low budget
handsets for India.

8. 6
ECONOMIC
GROWTH

9. 2
The Economic
Problem

10. POLITICAL ENVIRONMENT
The political and legal environment consists
of laws, government agencies, and pressure
groups that influence and limit various
organizations and individuals. Sometimes
these laws also create new opportunities for
business.
Two major trends in the political environment
are:
 Increase in business legislation
 Growth of special interest groups

11. Legal and Regulatory Environment

Laws and Regulations



for safety
for consumer protection
to protect special interests

Dangers of litigation--anyone can

Examples:
sue, and juries often buy it!

Antitrust



Fair competition
Pricing
“Truth in Lending”--have to tell
people real costs of financing; car
leases now regulated

12. Political Environment
This environment is also very important from company’s
point of view because marketing decisions are strongly
affected by developments in the political environment.
It consists of laws, government agencies and individuals in
a given society. Any political decision can affect market.
For example:
• In Egypt and Libya there are ongoing a political riot and in
this situation Nokia company decreased their market.
• Samsung violated a host of Apple patents and engaged in
"willful infringement”.

13. Cultural Environment

The institutions and other
forces that affect a society’s
basic values, perceptions,
preference, and behaviors.

14. Cultural Environment
Cultural factors strongly affect how people think and
how they consume.
This environment is made up of institutions and other
forces that affect society’s basic values, perceptions,
preferences and behaviors.
• Mobile industries operates in a diverse number of culture.
• Mobile industry puts one local language in their handsets.
• Marketing strategy depends sometimes on the culture.

16. Natural Environment
The natural environment involves the natural resources that
are needed as inputs by marketers or that are affected by
marketing activities.
Mobile industries are continuously improving the
environmental credentials of all their product like:
• Improving energy efficiency.
• Using renewable materials and smart packaging.
• Making eco friendly products.

17. Mobile industries being eco-friendly
Energy efficiency: automatic screen brightness
adjustment, battery saver feature, energy efficient
charger.
Materials: free of PVC, Contains bio plastics &
recycled metals, Free of nickel on the product
surface.
Recycling: 100% recoverable as materials and
energy.
Packaging: 100 % recyclable, minimized package
made of renewable materials containing up to 60%
recycled materials, Virgin wood fibers up to 100%
certified.

18. Technological Environment
Most
dramatic
force now
shaping our
destiny.

19. Technological Environment
Today technological advances are perhaps the most
dramatic forces affecting today’s marketing strategies.
Forces that are creating new technologies are also
creating new products and market opportunities.
The mobile phone in our hand is now packed with
advanced tools that let you do so much more.
• Nokia launched wireless charging phone.
• Samsung launched phones with HD sensitive
touchscreen.
• Recently Nokia launched phone with 41 megapixel
camera.
• Sony launched a phone which is dust and
water resistance.

20. Mobile industries being eco-friendly
Energy efficiency: automatic screen brightness
adjustment, battery saver feature, energy efficient
charger.
Materials: free of PVC, Contains bio plastics &
recycled metals, Free of nickel on the product
surface.
Recycling: 100% recoverable as materials and
energy.
Packaging: 100 % recyclable, minimized package
made of renewable materials containing up to 60%
recycled materials, Virgin wood fibers up to 100%
certified.

22. Technological Environment
Accelerated pace of change
Unlimited opportunities
R&D Spending

23. SOCIAL - CULTURAL ENVIRONMENT
Society shapes the beliefs, values, and
norms that largely define consumer tastes
and preferences. People absorb, almost
unconsciously, a world view that defines
their relationships to themselves, to others,
to organizations, to society, to nature, and
to the universe. The diversity in the world
is not only restricted to topography but also
in the languages, cultures as well as
religious beliefs. In this era of
globalization, organizations cater to the
culture of each country where it functions
or operates.

24. 
Gap Analysis

Difference between total market potential and total sales

The difference could be due to

Product usage gap - increase promotion, advertising, price etc.

Product line gap - lack of product variation; latent demand

Distribution gap - lack of appropriate coverage
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25. Market Share

Market share is the percentage of total sales that a
company can expect to get from the total market.

Eg. there are 100 gadgets sold in a country and
company A sells 43 of them, then company A has a
43% market share

you sold Gadgets for a total cost of $860 and the
people in the country spend a total of $2,000 on the
same widgets, then the market share is $860/$2,000
or 43%
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27. ACTIONS TAKEN DURING LIBERALIZATION

Elimination of industrial licensing and registration.

Liberalizing the MRTP act.

Freedom for expansion and production.

Increase in the investment limit of the small industries.

Freedom to import capital goods.

Freedom to import technology.

Free determination of interest rates.

28. Environmental Scanning and Analysis
SCANNING
ACTION
ANALYSIS

29. Five forces analysis
Potential
entrants
Threat of
entrants
Suppliers
COMPETITIVE
RIVALRY
Buyers
Bargaining
power
Bargaining
power
Threat of
substitutes
Substitutes
Source: Adapted from M. E. Porter,
Competitive Strategy, Free Press,
1980, p. 4.

30. Walt Disney markets two distinct Pooh bears to match its two-tiered
market.
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31. References
Drēziņa, E.(2014). Macro. [Online],available:
http://www.slideshare.net/elinadrezina/macro-31821756 07 March 2014
Fegade, A. (2013). Micro environment. [Online], available:
http://www.slideshare.net/atulfegade/bom3/ 07 March 2014
Patel, R. (2009). Marketing environment. [Online], available:
http://www.slideshare.net/raj1436/marketing-environment-1315233
Singh,P. (2013). Macro environment.[Online], available:
http://www.slideshare.net/ParitoshSingh4/macro-environment-of-theindustry 07 March 2014