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