3. Micro & macro environment
how to incorporate macro issues into marketing strategy
1. We need to know and understand them and appreciate their immediate and long term impact E.g recession and buyer behaviour 2. We need to use them to our advantage (e.g. refocusing on needs and character of new Black Middle Class) We need to find ways of turning weaknesses to our advantage, e.g. offering credit to people who can't pay cash for goods/supporting stokvels etc We need to identify trends which are Macro environmentally driven e.g consumer attitudes towards ecology as Woolworths has done.
proactive
: Aggressively try to change people's views through lawsuits, complaints, aggressive editorials and advertising campaigns
stockvels
A group of people - usually 12.. Who come togther to save, invest for common purpose. monthly commitment. types: investment cartels, saving schemes, burial societies and christmas saving schemes
Economic forces
GDP growth , gini coeffecient, eskom, impact of oil price, Income, spending, interest rates, cost of living, inflation rates, employment rates and exchange rates. BEE and the 'black diamond' thought process
Firm's Micro environment
Process by which the marketing manager gathers and sorts information about the marketing environment
Natural forces
Shortages of raw materials, Increased pollution, Increased government intervention
accepting
Some firms are accepting of the environment they find themselves in and work to make the best of it and adapt their campaigns to fit into the framework the environment provides
Demographic forces
The human population is terms of size, density, location, educational, household patterns age, gender, race and occupation. Generations play a role in marketing campaigns. Certain significant defining factors: the baby boomers (born from 1945 till early 1960s), Generation X(1965-1976), generation Y(1977-1994), the changes in South African family structures, geographical shifts towards urbanisation, increasing diversity within ethical breakdowns, sexual-orientation and environmental barriers
publics
[any group that perceives itself having an interest in a company' ability to achieve its objectives ] Financial public works, media publics, government publics, local publics, general publics, internal publics
marketing intermediaries
[help the company to promote, sell and distribute its goods to final buyers] Resellers, Physical distribution enterprises, Marketing service agencies and Financial intermediaries
The suppliers
[provide the resources needed to produce goods and services] Supply availability , Demand trends, price trends and Relationship between suppliers
Customers
[the types of markets that purchase a company's goods and services ] consumer, business, reseller, government and international markets
competitors
[those who serve the target market with similar products and services] need to know whether differentiate on: price, quality, service or differentiated products
firm's reponse to marketing environment
accepting or proactive
escalating influence of technology
competitive advantage, high costs, short life cycles, range of choices, innovation process and ongoing analysis of customer's needs
macroenvironment
demographic, economic, natural, technological and political and legal forces, sociocultural economic forces
informal sector
grew due to political environment, which created an evolution of unique structure. Stockvels and spazas has become a part of these growing sector
spazas
informal retail outlet, usually selling essential, often perishable groceries. open for long. located in townships and compete with formal retailers who are moving into townships. strong child customer base.
legal enviroment
many laws in place tend to protect consumers, medical treatments and ways of doing business. In SA: Anti monopolies act, drug laws. environmental, NCA-credit, Tobaaco laws and strategic product laws- fuel
issues with the technological environment
rapid pace of change, high research and development costs and it is not always needs-driven
Process of the microenvironment
the firm, suppliers, marketing intermediaries, customers, competitors and the public
the firm
work to together to think about the consumer, aim to provide superior customers value and satisfaction
LSM
• Means categorising people according to their living standards using criteria such as degree of urbanisation, ownership of cars and major appliances