Introduction The purpose of this report is to demonstrate an understanding of the marketing macro environment. The proposed research question was: Identify the macro environmental factors and discuss the impact this macro environmental factors will have on the industry or organizations involved.
Firstly, this report will summaries the article, identify and explain the issues written in article. Followed is the definition and explain of macro environmental factors involved. Then the report topic will moving to the industry concerned and have a discussion of the impact that this macro environment factors will have on the industry. Finally there is a short conclusion highlighting the main points of this report. 2. 0 Summaries The article comes from DOWJONES mainly discussed some specialists’ standpoints of the change of Aussie dollar’s exchange rate and the reason of this fluctuate.
In addition, this article analyzed the situation of those industries which can be affected by these economic environment factors. According to this article, tight monetary policy may be used causing by worldwide inflation. With the dropping and down of the interest rate, many industries may be effected directly, such as manufacturing industry, real estate industry and tourism industry. (Webb, Richard. 2011) The reason the article is being written is to show the change of the economic environment and give information to those people who want to understand the external marketing environment, such as marketers.
Order custom essay Macro Environment Factors with free plagiarism report
Unless marketing managers understand the external environment, the organization cannot intelligently plan for the future. (Lamb,Charles et al. ,2009) For example, marketers come form real estate industry must scanning the macro-economic environment because macro-economic factors such as inflation, interest rates, and exchange rates impact on mortgage affordability and the real value of mortgage repayments over time. ( Boamah, Nicholas. Addai, 2010) 3. 0 Macro environment factors
The external marketing environment consists of sociocultural, economic, technological, political and legal, and competitive variables. ( Lamb,Charles et al. ,2009) This article mainly discussed the situation of inflation, which is one of the economic environment factors. Inflation is a general rise in prices without a corresponding increase in wages, which results in decreased purchasing power. ( Lamb,Charles et al. ,2009) According to the article, there are diverse views on where the Aussie is heading, and this direction is critical for interest rates. In the worst case, Michael Workman predicted that later in the year where the local currency will be falling sharply at the same time the price of the manufactured goods we import by the container-shipload form China continues to rise. ” (Webb, Richard. 2011) As mentioned, the manufacturing industry may face the raising price of those goods import form other countries because the falling of local currency. The second point is Reserve Bank of Australia may increase interest rate to cut down the influence of inflation.
That would take the home mortgage rates higher at the same time, which means people must pay more interests to the bank to get the loan. Then the real estate industry will be affected directly. Another industry will be influenced is tourism industry. With the higher currency price, people tend to go for an overseas holiday. The local tourism is being decimated. The tourism industry is also involved in the competitive environment. ( Webb, Richard. 2011) 4. 0 Industry involved In this article, three main industries are concerned: manufacturing industry, real estate industry and tourism industry. 5. 0 Impact of the factors
As the discussion above in 3. 0, these industries are all affected by the inflation. In time of low inflation, business seeking to increase their profit margins can do so only by increase their efficiency. If they significantly increase price, no one will purchase their goods or services. In higher inflationary times, marketers use a number of pricing strategies to cope, and must be aware that inflation causes consumers either to build up or diminish their brand loyalty. Inflation pressures consumers to make more economical purchases, while still attempting to maintain their standard of living. (Lamb,Charles et al. 2009) From the article, the Australia local manufacturing industry was suffering as imports become extremely competitive and our exports more expensive. As same as the manufacturing industry, the local tourism industry also faced the international competitors. The original factor of this situation is the negative economic environment. Followed the inflation, the Reserve Bank of Australia tend to carry out the tight fiscal policy to control the economic environment. So numbers of experts indicated that interest rate would increase. With the increase of interest rate, the price of currency may tend to higher.
High record of currency will lead to different situation in different area. For customers, this will be a good chance to buy import goods and services. But for local industries, marketing managers must try to collect and evaluate environmental information and then creating marketing strategies to cope with inflation. (Lamb,Charles et al. ,2009) 6. 0 Conclusion The mainly factor of these three industries is economic environment; other factors also play a significant role in these industries, such as political and legal environment and competitive environment. These factors affect marketing together.
Reference list Boamah, Nicholas. Addai. (2010). The impact of the macro-economic environment on institutional housing finance in Ghana. Housing finance international, Vol. 25, Issue 2, p28-34. Lamb,Charles. ,W. ,Hair,Joseph. ,F. ,McDaniel,Carl. ,Summers,Jane. ,Gardiner,Michael. (2009). MKTG(1ST Asia-Pacific edition). South Melbourne, Australia: Paul Petrulis. Webb, Richard. (2011, March 27. ) Trading with fire: Sunday age.
Cite this Page
Macro Environment Factors. (2018, Jul 05). Retrieved from https://phdessay.com/macro-environment-factors/
Run a free check or have your essay done for you