Macroenvironment alanalysis india

Presented By Rajalaxmi, Sweta, Danish

Macro environment
 The major external and uncontrollable factors that
influence an organization's decision making, and affect its
performance and strategies. These factors include the
economic factors, demographics, legal, political, social
conditions, technological changes, and natural forces.
 Specific examples of macro environment influences
include competitors, changes in interest rates, changes in
cultural tastes, disastrous weather, or government
regulations.

 The Macro Environment includes the factors which are
external to the firm.
 Cannot be controlled by the organisation.
 Not specific to any industry but influences all the firms but
the influence may be at different levels.
 As a Marketing manager, one must have knowledge of
different factors which influences the marketing decision of a
firm.
 One must adjust to the decisions as per the changes in the
environment.
 The Important factors comprising the Macro Environment of
Marketing are Demographic, Economic, Socio-Cultural,
Natural, Technological and Political-Legal.

Demographic Environment
 It is related to population and population mix.
 It is people who contribute to demand.
 It is manpower which helps in production and supply.
 Thus as a marketer, on must understand the demographics of
the nation.
Population Growth:
• India is ranked second in terms of population after China.
• Provides an exceptional opportunity for business.
• The high population growth has attracted many FMCG firms
and retailers in countries like China and India whose markets
are yet unexplored.

Population Mix:
• The composition of population is important.
• In a country like Japan, where major population is aged has
attracted Pharmacy firms.
• In India where population is composed of youths has made the
firms to position themselves as pro-Youth, like MTV, Adidas,
Coke etc.
Household pattern:
• The household pattern, like large Families, small families or
nuclear families, also influence the marketing decision.
• In rural areas of India, the trend of large and joint families is
pertinent, the purchasing decision is influenced by most of the
family members
• In case of urban India where nuclear families are in trend, the
decision is taken by a single user.

Geographical Shift:
• In India, a language changes every 100 miles and culture
changes every 10 miles
• The marketer must have knowledge of the culture and
language of the region to position its production in a better
way.

Economic Environment
 The ability to buy a product is vital for a marketer. It can be
measured in terms of income distribution, economic
conditions of the nation, credit availability.
 India being an emerging economy has lots of potential for the
markets.
 The availability of infrastructure, the business development,
the policies, the distribution of income are also important
parameters.
 A high inequality in distribution will lead to limited potential as
the market is widely controlled by few riches which have the
purchasing capability.

Socio Cultural Environment
 The market should adjust the decisions with respect to the
cultural and social beliefs.
 McDonald’s had to stop its products containing beef, as cow is
regarded as goddess in India.
 But in many cases, firms are able to dilute the cultural beliefs
by exposing them to a new culture.
 Archie's has made its market in India by promoting different
occasions like Valentine's Day, Fathers' Day and Friendship day.
 The companies who are consistent with the cultural beliefs
and are able to attract the loyal customers more easily
and can retain them more effectively.

Natural Environment
 Nature is the source of raw materials for the production of a
product.
 The raw materials may be renewable, infinite or depleting.
 The raw materials should be preserved and wastage must be
minimized.
 Pollution should be minimized to preserve the ecology.
 Marketers in the current scenario try to Go Green and
promote the Eco friendly Concept.
 Idea promoted Save Paper.
 Many companies are promoting Go Green campaign.

Technological Environment
 A marketer must be aware of recent technological updates.
 Being technologically upgraded and using the latest
technology provides competitive advantage over the
competitors.
 There are unlimited opportunities for innovation and every
competitor tries to exploit the new usage of the product.
 The innovation can be in terms of new usage, new package,
new material, and new method of production or even new
kind of promotion.
 The recent era has seen many indescribable Innovations like
Tata Nano, Apple I phone, Kindle E-reader, M-Commerce,
Micro Credit, etc..

Political & Legal Environment
 It consists of Government Regulations, policies, social groups,
etc.
 Any kind of business must be abided by the legal policies of
the nation.
 Protects customers from exploitation by the businessmen.
 Protect interests of society.
 Protect companies from unfair competition.
 There are various kinds of laws in India like Consumer
Protection Act, Environment protection Act, Indian Contract
Act, Competition Law etc.
 Every citizen is required to be abided by the Indian
Constitution.
 Policies like Displaying the Expiry date, MRP, and Green Circle
on a Vegetarian Food product also influence the marketing
decision.

 There are Special Interest Groups like NGOs who oppose
any unethical acts by the business.
 Recently, we saw opposition by large customer group
against Cadbury as worms were found in one of its
products.
 Coca-Cola suffered lots of opposition as pesticides were
found in its cold drink.
 The Growth of Consumerism movement has made the
business Pro-Consumer and made the market a
Consumer-Driven Market.

Conclusion
 As a marketer, one must understand each and every
parameter of the Macro Environment and be flexible to the
changes in the environment.
 As these factors are external to the business and cannot be
controlled, ability of being flexible to the changes in these
factors will provide competitive advantage to the firm.

Macroenvironment alanalysis india

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Macroenvironment alanalysis india