Global Marketing and Sales Development
2023
Week 3
Analysis of Macro and Micro Environment
Module Code: MKT 744
CRN: 35521
Learning Outcomes
Macro and Micro Environment analysis
1. To learn the importance of Market Research
1. Learn what is Macro Environment and what is Micro Environment.
2. Learn the importance of understanding the Macro and Micro Environment.
3. Learn to apply the PEST tool to analyse the Macro Environment.
4. Learn how to perform a Consumer and Competitor analysis.
The role of market research
Accurate, informed decision making often depends on the quality of
information
1. to identify and define marketing opportunities and problems, threats.
1. to generate, refine and evaluate marketing actions.
1. to monitor marketing performance.
1. to improve understanding of the marketing process.
Market Research
Macro Environment
• The macro environment comprises those factors which are common to all
firms in the industry. In many cases the same factors affect firms in other
industries.
• The macro environment is difficult to influence or control.
However, you could argue, the very largest firms have to some extent indirect
control, or even influence, on the macro environment.
WHICH ARE THE MACRO
FACTORS?
This Photo by Unknown Author is licensed under CC BY-SA-NC
PEST analysis
PEST analysis is a technique used to identify, assess and evaluate external
factors (Macro Environment) affecting the performance of an organisation with
the aim of gathering information to guide strategic decision-making.
Political and Legal Analysis
How the policies and actions of government affect the conduct of
business.
Focus:
The legislative and regulatory framework for business, employment and trade.
❖ Conducting a business in a country.
❖ Foreign Direct Investment (FDI).
❖ Trade Barriers: Quotas, Tariffs, Import Licenses
Economic Analysis
This is concerned with overall prospects for the economy.
Focus:
❖ GDP/GNP inflation interest rates exchange rates unemployment
figures wage and price controls fiscal and monetary policy.
Social Analysis
This is concerned with Demographic factors.
Focus:
❖ Birth rates, population growth, regional population shifts, life expectancy or
a change in the age distribution of the population should be taken into
account.
Technological Analysis
Which new technological developments will have implications for my business?
Focus:
❖ Investment in research and development
❖ New technologies and inventions
❖ Internet and e-commerce developments
❖ Developments in production technology
❖ Rates of obsolescence
Conducting the PEST Analysis
How to Conduct the PEST analysis
The usefulness of the analysis will depend not so much on the quantity of
information collected, but on its relevance.
• Consider which factors are most likely to have an impact on the
performance of the organisation.
• Larger companies will need to consider the environment in any countries in
which they do business, as well as the global scene and emergent
competition. Information on current and potential changes in the
environment should be included.
• THE OUTCOME OF MACRO ANALYSIS: THE IDENTIFICATION OF THE
OPPORTUNITIES AND THREATS
MARKET
ANALYSIS
MICRO ANALYSIS:
Customer analysis
Firms need to have an in-depth knowledge of customers’ buying behaviour
and buying decision process in their potential market(s).
How the various aspects of cultures will influence in consumer buying process in
a particular country?
● Study the values , beliefs and attitudes of the consumer in a particular
country.
Customer analysis
Role of Individuals in a household/culture:
To be successful, firms need to understand the role that individuals in these
different household structures play when deciding what products/services to
purchase and consume.
These roles include: gatekeeper, influencer, decider, buyer and user. In addition,
they should be aware that household purchase decisions can be made by one,
some, or all members of the household and, similarly, that the products/services
may be consumed by one, some or all of the household members.
Competitor analysis
‘Identification and quantification of the relative strengths and weaknesses
(compared with competitors or potential competitors), which could be of
significance in the development of a successful competitive strategy.’
CIMA Official Terminology Guide 2005
Competitor analysis
According to Wilson (1994), competitor analysis ‘should be a central element in
management planning and control, with detailed attention being paid to each
competitor’s objectives, resources and competitive stance, as well as to
individual elements of its strategy.’
Competitors:
Essentially, business competitors can be broken down into the following four
categories (Weiss, 2002).
1. Organisations offering the same product or service.
2. Organisations offering similar products or services.
3. Organisations that could offer the same or similar products or services in the
Future.
4. Organisations that could remove the need for a product or service.
The importance of competitor analysis
1. In which areas are we most vulnerable to our competitors?
2. What is our company doing to reduce this vulnerability?
WHAT NEXT?
BEFORE THIS WEEK’S SEMINAR
Click the Module Handbook tab on Global Marketing
and Sales page on the Blackboard.
Read the Module Handbook.
The End
Global Marketing and Sales
Development
Seminar
Week 3
Assignment Brief
This can be found under Assessment section on the Blackboard.
Please log in to the Blackboard.
Click Assessment : Click the Assignment Brief.
Activity
Key points from your assignment
Please Identify and note the key points form your assignment.
Critical:
Those that you need to comply, what are they?
Which ones you do not understand?
Assessment Criteria: Do you understand the assessment criteria?
How your assessment is graded?
Allocation of the Company for your assignment
1. Please note the company that has been allocated to you.
❖ No other company can be used for this assignment.
2. Choose two culturally different countries.
❖ What does the assignment says about choosing the countries?
❖ Why do you think we are choosing two culturally different countries?
Seminar task: 20 min
Produce a Mind-map : GLOBAL Company Profile
Background Research: GLOBAL Company Profile
What business are they in?
The key markets in which they operate?
What are their current Vision, Mission and Objectives?
What are their future Vision, Mission and Objectives?