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Macro Environment Factors for Ongoing Global Markets

What are Macro Environmental Factors?Macro Environment Factors for Ongoing Global Markets

A macro environment is the environment and conditions that exist around in a business as a whole, rather than in a particular sector or region. It includes Demographical, Economic and Technological factors. It also covers the Political Forces and the Cultural aspects related to international global markets.

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. The macro environment is closely related to the general business cycle.

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.

Factors Affecting a Business in Global Markets in the Contemporary Era:

These are the following factors that affect the business in the international markets.

Demographical Factors:

Demo-graphical factors include studying human populations in terms of size, density, location, age, gender, race, and occupation. This is a very important factor to study for international marketers and help them to divide the population into market segments and target markets. 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. 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.

The Economic Factor:

Second aspect of the macro-environment is the economic environment. This refers to the purchasing power of potential customers and the ways in which people spend their money. Within this area are two different economies, subsistence and industrialized. Subsistence economies are based more in agriculture and consume their own industrial output. Industrial economies have markets that are diverse and carry many different types of goods. Each is important to the marketer because each has a highly different spending pattern as well as different distribution of wealth.

Natural Environment:

The natural environment is another important factor of the macro-environment. This includes the natural resources that a company uses as inputs that affect their international marketing activities. The concern in this area is the increased pollution, shortages of raw materials and increased governmental intervention. As raw materials become increasingly scarcer, the ability to create a company’s product gets much harder. Also, pollution can go as far as negatively affecting a company’s reputation if they are known for damaging the 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.


The technological forces in the technological environment are perhaps one of the fastest changing factors in the macro-environment. This includes all developments from antibiotics and surgery to nuclear missiles and chemical weapons to automobiles and credit cards. As these markets develop it can create new markets and new uses for products. It also requires a company to stay ahead of others and update their own technology as it becomes outdated. 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.

The Political Factor:

The political environment includes all laws, government agencies, and groups that influence or limit other organizations and individuals within a society. It is important for international marketers to be aware of these restrictions as they can be complex. Some products are regulated by both state and federal laws. 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. As laws and regulations change often, this is a very important aspect for a marketer to monitor to move ahead in the international markets.

The Cultural Factor:

The final aspect of the macro-environment is the cultural environment, which consists of institutions and basic values and beliefs of people. The values can also be further categorized into core beliefs, which passed on from generation to generation and very difficult to change, and secondary beliefs, which tend to be easier to influence. As a marketer, it is important to know the difference between the two and to focus your marketing campaign to reflect the values of a target audience.

When dealing with the marketing environment it is important for a company to have proactive approach. By doing so, they can create the kind of environment that they will prosper in and can become more efficient by marketing in areas with the greatest customer potential.

Also Study:

Macro Environmental Factors For Going Global Market

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