There are two kinds of external marketing environments; micro and macro. These environments’ factors are beyond the control of marketers but they still influence the decisions made when creating a strategic marketing strategy.
Micro Environment Factors
- The suppliers: Suppliers can control the success of the business when they hold the power. The supplier holds the power when they are the only or the largest supplier of their goods; the buyer is not vital to the supplier’s business; the supplier’s product is a core part of the buyer’s finished product and/or business.
- The resellers: If the product the organisation produces is taken to market by 3rd party resellers or market intermediaries such as retailers, wholesalers, etc. then the marketing success is impacted by those 3rd party resellers. For example, if a retail seller is a reputable name then this reputation can be leveraged in the marketing of the product.
- The customers: Who the customers are (B2B or B2C, local or international, etc.) and their reasons for buying the product will play a large role in how you approach the marketing of your products and services to them.
- The competition: Those who sell same or similar products and services as your organisation are your market competition, and they way they sell needs to be taken into account. How does their price and product differentiation impact you? How can you leverage this to reap better results and get ahead of them?
- The general public: Your organisation has a duty to satisfy the public. Any actions of your company must be considered from the angle of the general public and how they are affected. The public have the power to help you reach your goals; just as they can also prevent you from achieving them.
Macro Environment Factors
- Demographic forces: Different market segments are typically impacted by common demographic forces, including country/region; age; ethnicity; education level; household lifestyle; cultural characteristics and movements.
- Economic factors: The economic environment can impact both the organisation’s production and the consumer’s decision making process.
- Natural/physical forces: The Earth’s renewal of its natural resources such as forests, agricultural products, marine products, etc must be taken into account. There are also the natural non-renewable resources such as oil, coal, minerals, etc that may also impact the organisation’s production.
- Technological factors: The skills and knowledge applied to the production, and the technology and materials needed for production of products and services can also impact the smooth running of the business and must be considered.
- Political and legal forces: Sound marketing decisions should always take into account political and/or legal developments relating to the organisation and its markets.
- Social and cultural forces: The impact the products and services your organisations brings to market have on society must be considered. Any elements of the production process or any products/services that are harmful to society should be eliminated to show your organisation is taking social responsibility. A recent example of this is the environment and how many sectors are being forced to review their products and services in order to become more environmentally friendly.
Micro and macro environments have a significant impact on the success of marketing campaigns, and therefore the factors of these environments should be considered in-depth during the decision making process of a strategic marketer. Considering these factors will improve the success of your organisation’s marketing campaign and the reputation of the brand in the long term.
If you are interested in learning more about micro and macro environments, and strategic marketing as a whole, then you may be interested in the CIM Diploma in Professional Marketing. The marketing course is ideal for individuals looking to build practical skills in operational marketing management and broaden their strategic perspective. For more information about the marketing diploma qualification and studying with Oxford College of Marketing, call Dave Charlton on (0)1865 515 255 or email email@example.com.
Starbucks Marketing Macro Environment Essay
1609 WordsApr 28th, 20127 Pages
The following report evaluates the marketing environment for the coffeehouse business, specifically Starbucks. The report will cover a brief background of the company and reasons to why Starbucks has been selected as a center group to display a marketing report. A macro environmental study will demonstrate important possible threats and opportunities for Starbucks. It will also look into further segmentation research, characteristics, views and behaviors within the consumer groups.
Background to Starbuck and Selection Criteria
Starbucks was established in 1971. The global brand is well known throughout the world and now sits in 50 countries, with more than 17,000 stores (Starbucks,2011). In 2010 the international…show more content…
Starbucks boasts that it has stores worldwide in over 50 countries, however less economically developed countries where Starbucks trade, such as; Vietnam, will struggle to meet targets as less people will be prepared to spend money on an expensively priced cup of coffee.
Currently with the economical crisis, this could have a large effect in sales. Coffee to many people is seen as a luxury, it isn’t needed to survive, so if prices continue to soar, people may simply eliminate it from their lifestyles. This will give other competitors a gap in the market to compete against its prices, Starbucks already has competition from many fast food chains, such as; Burger King and MacDonald’s as their prices are low and its convenient. Other coffee roasters have also closed the gap on Starbucks, competing with lower prices and more to offer than coffee and a minimal food selection (money,2011) The majority of Starbucks beverages contain milk, and recently diary products prices have increased due a rise in raw materials and diesel prices, again this could lead to an increase in price at Starbucks coffee, which could eventually end in losing customers, who simply don’t have the money to spend on coffee (Telegraph,2011).
Starbuck’s are very modernised when it comes to the technical side of the macro environment, they have Wi-Fi in the majority of stores, and have their own loyalty cards to help maintain their regular customers