Microenvironment Factors

Overview

           Macro-environmental factors are the aspect of external environment of a business venture such as, culture, demographics, social trends, technological advancement. Economic aspect and Political aspect. First one is culture, it is a shared meaning, beliefs, morals, values, of a group of people. This culture differs from one place to another, they are shaping their mind for the truth that they clans are creating for example here in the Philippines we have lots of ethnic groups that has different beliefs. They influence each other on what to buy, what to wear so studying culture is an effective way. Next one is Demographics, it is an overall description of the characteristics of segment of human and population, it can be filter by means of age, sex, status, and income level. Studying demographics will help you enhance your business by choosing the best place to start a business. As well as the number of populations in a certain area will help you boost your market. More population, more possible market. Next is income, it is the amount of monetary that the people have. It can be in a form of allowance or salary. The income level of the person will determine their purchasing power of peso. The more disposable income that an individual has, the more possibility of buying a product. Disposable income is the remaining income less than its leisure money. The discretionary income is the income for personal necessity. Education is the acquisition of knowledge skills, values, morals, and beliefs. This will be enhanced through the use of online or face to face class. The education will be enhanced in school, and best at home. It can develop on how we perceived life, depends on how we want to live. That’s why studying education as a business entity will help you change their perception about life. You can persuade them on how they should act in the market place.

            Another external factor is ethnicity, because of migration and immigration lots of ethnic groups spread all throughout our country. Their migration will affect the location and stablishing of demand for products and services, it changed because of the needs of people in specific location. Studying ethnic groups will be helpful to your business for example is the feasibility study of Jollibee in Montalban, they use to recognize the existence of ethnic group named dumagat, and it still shows the result that it is profitable to place Jollibe near dumagat’s place. Next is Adding value, before the men and women have their own priority when shopping goods. Men use to buy shirts and video game, while women focus on make-ups and groceries. But in modern era, these stereotypes are not applicable anymore. The grocery store aims to target the subconscious mind of the consumer. So that they put all their luxury items in front while, convenient items are in the back. It is to trigger the willingness of the consumer on buying products that boost purchasing power of the consumer. Next is Social trends, it should be maximized nowadays in having some business venture without fashion product, they are having hard time on selling those products. On this era, people tend to buy what’s on the trend, so who ever don’t have the ability to adapt to what’s trend will be left behind in a competition. Next is healthy, Business ventures should follow healthy protocols from the medical practitioners, in order to avoid grievance and complains from the customer and to promote healthy environment. Next one is privacy concerns, there are lots of people who’re manipulating information just to have publicity, you must study this one because fake news is not really helpful and can harmfully affects lots of people. It can trigger also the privacy of everyone, so better be careful specially when your privacy is posted in the net. Protect yourself from glitches that can hack your privacy and can manipulate and destroy you in public. And last is Technology, the advancement of technology can play a major role in stablishing a business not only that but in everything. being knowledgeable in the advancement of technology can bring your company at the top, especially in present days, technology is vital in our everyday life. If you can’t cope up to the advancement of technology, you will be left behind for years.

Cultural Factors

           There are lots of factors affecting the market, one factor will be culture. Culture of one’s place will influence buying behavior of their members. Every place has different cultures so we must study hard on gathering information about other culture before establishing a business. If we aim to start an international business, we must be able to learn lots of culture. For example, Mc Donald’s. This fast-food chain operates worldwide they are enabling to follow every law that didn’t violates any culture and tradition of one’s place for example, Mc Donald’s in UAE. And any Muslim and Arabic country. In order to operate they study the beliefs and tradition of Arabic country, in order to avoid being disrespectful to them. They start to remove from the menu all the food with ingredients that is not JALAL certified. So that there are no fries, and gravy on that said country. That’s why Mc Donald’s became successful in their own way. Another country that Mc Donald’s adjusted their menu is in Malaysia, they add the best food in that country to their menu, in order to suffice the demand on that food, and also gather lots of market. Population is also important it dictates what type of age and gender will be dominant. If the place has higher number of young adults your target market should be young adult, the product should focus on your target age. If the place has lots of older adult, you should focus on older adult. For example, here in the Philippines all the in-demand product is focus on young adult, the crop top, skinny jeans, board shorts, make up, and beauty products. These products are immense in the Philippines because we have lots of adult here. While in Japan they have lots of old people, so that the product there focused on old people also. The culture and social environment affect also the buying behavior of the consumer, it influences them on how should we behave, dress, talk, and our perspective in life will be also affected, so it is very important to be consider in establishing business. For example, if you’re environment is more on Islamic people you should not sell pork, because it is not suitable in their religion. And if your community are full of vegetarian people, you don’t usually sell meat. If your place is located near at the gym, sports community you must likely to sell meat. These shows that the behavior of the community as well as social environment really affects the buying behavior of the consumer. In this country where people love fashion and sports the business entity mixed the variation of sports and fashion, they start to create a sportswear that can be use in fashion. Or a fashion designed sportswear. The business entity provides the demand of the consumer based on their social environment. This is what I used to do. When I am going to the mall I wear, designed shorts with a pair of snickers and mid-sized socks. It was appealing in the eye of the viewer as well as mine. So that I can say the business studied the social trend and social environment and provide a product that suffice that unknown demand. 

Demographics and Social Trends

         Company uses lots of method on producing and imposing their product. That’s why, marketing concept also affected to change. If the business wants more the marketing concept upgrade. The ethnic marketing is created because of various ethnic groups living in this world. The concept of marketing is in general so that they split it into pieces to focus more on specified groups of people, for example this ethnic groups. Different ethnic groups have different ethnicity. It can be in a form of beliefs, tradition, language, food they eat, and clothes they wear. Ethnic marketing is used to reflect and target specific ethnic groups to know what they need and provide it to them on the very best possible way. Ethnic groups play a vital role in the market, because they are part of this society as a whole and they have the ability or power to buy. So that giving consideration to ethnic groups on decision making for market segmentation is really helpful in this time because ethnic groups are part of the whole market we are belonging to. For example, a new flavor drink of Mc Donald’s produced because of the ethnic groups who demand fruits flavor in district in America. This only means that ethnic groups really influence the buying behavior of the society, as well as the production of business itself. Another method is geographical segmentation, it segments market depending on their geographical locations. Location can affect climates, place, availability that the place has. That’s why it must be consider as basis for establishing a business. For example, the STARBUCKS menu in manila is differ in the menu in the Baguio and Tagaytay. The menu here in the Philippines is different from menu in other country. For example, in the Africa the menu is all about milk, while in France, menu is a classic order with made to order pizza, in china the menu is filled with cheese. This implies the difference between the taste of each country. If you don’t adjust to the taste of every country, your business will fall in an instant. 

            Green marketing is what our world needs today, a business who operates and use lots of products for the sake of their business and the environment as well. These concepts of marketing will save our planet. Many business entities use plastic as a means of cover, designs, and wrapper that can affect our environment such as water pollution and air pollution, and as well as the destruction of ozone layer through creating plastic and proper disposal, using eco-friendly material will save our planet and this are the mission of environmental marketing. To avoid the destruction of the environment and preserve the remaining resources that we had. But green marketing is hard to promote. It is hard to attract the attention of the people, because viewers tend to support what they only see. They use to advertisement of this, it is more useful than this. They are seeking qualities but disregarding the harmful effects of this products. Using organic and environmental product is really helpful saving our environment. You can have your market at large if you able to maximize this concept. If you find something to turn this weakness into strength. The threat into opportunity, your business will be progressive as ever. You can have a maximum profit without destroying our environment.