Marketing
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Introduction
Every manager in an organization should think about the success of the organization and the marketing strategies he/she should employ for business success. The macro-environment being one of the factors that can influence the decision of an organization, it is essential to analyze and understand the elements within this environment.
- Changes in the forces of macro-environment can affect the marketing decision in the following ways;
The demographic forces
These forces relate to people’s characteristics like size, age, gender, among others hence essential to be analyzed by an organization. People are the main driving gear for every business activity; therefore, a necessary factor in marketing. The geographical shift of people i.e., through migration, will influence the decision of an organization. When people migrate, especially with the advanced technology, it will mean that even the product and services offered by an organization will be affected. This will affect the decision of an organization; hence the marketing strategy will have to be revised, and effective means to reach these people should be achieved.
Economic forces
This includes the factors that affect the consumer market and their spending pattern. This affects the decision making of an organization as things like tax, interest rates, inflation, among other factors, have to be considered. For example, if an organization needs to exports its goods and services across the boundaries, it should, first of all, determine and consider factors like how much the customers will have to spend. With this, the marketing decision will all depend on it primarily. The organization should, therefore, consider the GDP, Disposable personal income, among other factors.
Technological forces
These are the factors that create a new product for the organization with modern technology and marketing strategies. New technology like the internet, cryptography, and automation, among others, affect the marketing decision for an organization. For example, marketing managers should consider looking at the advanced technological factor that may influence the performance of the organization. The shift from technology to another means that the old one is replaced; hence this will change the decision making. If the organization does not cop up with changes in technology, then it will be an advantage to their competitor; therefore, it may lead to the downfall of the organization or outdate of a given product (Priporas & et al., 2019).
- Ethics is an essential consideration that should be considered by every business entity to make them work and do things in the right manner. Ethics will provide the standards that will identify acceptable practices, honesty, and fairness to the consumer market. Some of the reasons as to why marketing should be concerned with ethics include advertising. The methods that the companies use in advertising are an essential factor that requires ethical consideration. Violence, especially when the advert may likely reach children, is a vital thing to be considered before carrying out an advert. Contents that are likely to affect children through advertisements in marketing are an essential consideration that calls for ethical consideration.
The customers as well need to be protected; hence the ethical standards that have been set out for marketing are crucial. The ethics ensure that the products from firms are safe for use by humans. Without the ethical standards set up, then this will cause harm in terms of human consumption hence no safety. Pricing ethics also ensures that a business entity does not involve themselves in unethical practices like bid-rigging and predatory pricing (Murphy & et al., 2019). This ensures fairness when selling products and services in the market hence protecting other competitors from being thrown out of the market as a result of unfair pricing. Marketing, therefore, should be concerned with ethics to ensure that marketers are not involved in any form of misconduct. It, thus, ensures that business entities drive their activities in the right manner.
References
Priporas, C. V., Kamenidou, I. E., Nguyen, N., & Shams, R. (2019). The impact of the macro-environment on consumer scepticism towards cause-related marketing. International Marketing Review.
Murphy, P. E., Laczniak, G. R., & Harris, F. (2016). Ethics in marketing: International cases and perspectives. Taylor & Francis.