Marketing strategy sometimes appears to be not enough when it is based primarily on particular business characteristics. Environmental exogenous factors often tend to have a significant effect on the success of a marketing campaign. These factors influence all the organizations on a larger scale, so it is vital to keep track of them. Careful analysis of the environmental factors allows to predetermine and affect the company’s performance through a tailored marketing strategy.
Macro environmental factors affect all the organizations on a global scale in a long-term perspective and include political, social-cultural, economic, ecological, and technological categories. Economic factors define the public spendings; political ones form the attitudes; social ones regulate the public values; and technological ones generate the findings to solve the problems (Mbithi, Muturi, and Rambo, 2017, p. 200). Relating to a particular company, they determine how specific macroeconomic conditions affect the company’s performance (Maqin and Hendri, 2017, p. 72). They may deal with production, spending, and overall price level in the economy. The company may also heavily depend on these factors in a cyclical or finance industry.
The macro-environment often influences the success of a particular marketing strategy and the organization’s performance. The global economy state predominantly affects the consumers’ willingness and ability to spend, so the marketing should focus on portraying the necessity and accessibility of the product when the market falls (Hudrasyah et al., 2019, p. 83). Luxury goods industries may be specifically impacted by the fluctuations in consumer behavior (Hudrasyah et al., 2019, p. 80). High inflation and low employment level change the target audience, product positioning, and promotion strategy or platform. Analyzing these factors is an integral part of the marketing manager’s job in forming a strategy.
The macro-environment affects all industries in one way or another. A thoughtful marketing manager should be able to identify and analyze the changes on political, economic, socio-cultural, and technological levels to convey a proper marketing strategy. Macro environmental factors affect consumer spending, political moods, and overall values, which predetermine the product they need and can purchase. Keeping track of them is an essential factor in ensuring a successful marketing campaign.
References
Hudrasyah, H. et al. (2019) ‘Marketing strategy for game developer based on micro and macro environment in Indonesia’, Journal of Global Business and Social Entrepreneurship (GBSE), 5(14), pp. 78-92
Maqin, R. A. and Hendri, N. (2017) ‘Comparative analysis: the effect of macro and micro-environment on marketing strategy and marketing performance of small medium enterprises (survey on group of small medium enterprises of food and non-food products in Cianjur Regency, West Java, Indonesia)’, International Review of Management and Marketing, 7(5), pp. 70-76.
Mbithi, B., Muturi, W. and Rambo, C. (2017) ‘Macro environment moderating effects on strategy and performance’, The Saudi Journal of Life Sciences, 2(5), pp. 197-209.