In business, the marketing concept implies that a coordinated marketing organization is an efficient and profitable means of satisfying consumer wants. This notion goes along the basic definition of marketing as a total system of business action.
Marketing system therefore includes the organization doing the marketing job; the product, service, idea, or person being marketed; the target market; the intermediaries helping in the exchange transaction like the retailers, wholesalers, financial institutions and middlemen; and the environmental constraints.
The company's marketing system must operate within the framework of forces that constitute the system's environment. These environmental constraints are the macro environmental forces of a marketing system that are mostly not within the control of the company and yet have considerable effects on its operation. They are as follows:
DEMOGRAPHY
This is very vital to marketers because people who have the money to spend and willingness to spend it are what constitute markets. Demography as defined refers to the statistical study of human population and its distribution characteristics. Knowing the demographic statistics of your target market will likely show you the available opportunities in the market share.
ECONOMIC CONDITIONS
Basically, people alone can't buy your offered products and services if they don't have money; therefore, making the economic condition as an important factor that affects your marketing system. The purchasing power of each buyer depends on his economic condition. Just like now that most countries are suffering from global crisis, people will tend to buy only products that are important.
SOCIAL AND CULTURAL FORCES
These social and cultural forces constitute the lifestyle, beliefs, social values, traditions, and desires of consumers. Usually, these factors are changing much faster than they used to. A good example is a housewife who has changed into a career mother. Due to her limited time devoted to their home, she now prefers to buy products that are easy and convenient to use like ready mix for cooking or ready to eat meals.
POLITICAL AND LEGAL FORCES
This factor can greatly affect marketing system because every business should undergo or seek approval from their local government before implementing a certain marketing program that involves the external environment. Other factors included in these forces are existing laws on taxes, import and export, zoning and other national and local government policies.
TECHNOLOGY
The fast changing technological growth has made a tremendous impact in the lifestyle, consumption pattern and economic well being of every individual. Examples of these are the work shifting from manual to mechanical process, unlimited access and wide scope of communication.
COMPETITION
This is considered as a strong macro environmental force. People usually want total satisfaction in the product or services they purchased in exchange of their money. Marketing system must include an effective strategy that will lift the company status in the market field giving it a competitive edge.
Tuesday, February 24, 2009
What are the uncontrollable macroenvironmental forces of a marketing system?
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business,
consumer,
forces,
macroenvironmental,
marketing system,
uncontrollable
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