As laws and regulations change often, this is a very important aspect for a marketer to monitor to move ahead in the international markets. There are even restrictions for some products as to who the target market may be, for example, cigarettes should not be marketed to younger children. Some products are regulated by both state and federal laws. It is important for international marketers to be aware of these restrictions as they can be complex. The political environment includes all laws, government agencies, and groups that influence or limit other organizations and individuals within a society.
They must stay informed of trends so they can be part of the next big thing, rather than becoming outdated and suffering the consequences financially.
#Macro environment forces update#
It also requires a company to stay ahead of others and update their own technology as it becomes outdated.
As these markets develop it can create new markets and new uses for products. This includes all developments from antibiotics and surgery to nuclear missiles and chemical weapons to automobiles and credit cards. The technological forces in the technological environment are perhaps one of the fastest changing factors in the macro-environment. The least and the lower level of government intervention can make it increasingly harder for a business to fulfill their goals as requirements get more stringent. Also, pollution can go as far as negatively affecting a company’s reputation if they are known for damaging the environment. As raw materials become increasingly scarcer, the ability to create a company’s product gets much harder. The concern in this area is the increased pollution, shortages of raw materials and increased governmental intervention. This includes the natural resources that a company uses as inputs that affect their international marketing activities. The natural environment is another important factor of the macro-environment. Each is important to the marketer because each has a highly different spending pattern as well as different distribution of wealth. Industrial economies have markets that are diverse and carry many different types of goods. Subsistence economies are based more in agriculture and consume their own industrial output. Within this area are two different economies, subsistence and industrialized. This refers to the purchasing power of potential customers and the ways in which people spend their money. Second aspect of the macro-environment is the economic environment. Demography covers many aspects that are important to marketers including family dynamics, geographic shifts, work force changes, and levels of diversity in any given area. This can be beneficial to a marketer as they can decide who their product would benefit most and tailor their marketing plan to attract that segment. This is a very important factor to study for international marketers and help them to divide the population into market segments and target markets. Demographical Factors:ĭemo-graphical factors include studying human populations in terms of size, density, location, age, gender, race, and occupation. These are the following factors that affect the business in the international markets. Factors Affecting a Business in Global Markets in the Contemporary Era: Moreover, Factors affecting a business entity in Macro environment are known as PESTEL, that is: Political, Economic, Social, Technological, Environmental, Cultural and Legal as well. The macro environment is closely related to the general business cycle. Generally, the macro environment includes trends in Gross Domestic Product (GDP), inflation rate, employment conditions, spending, local laws of a country, technological forces, monetary and fiscal policy.
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