- 20 lessons
- 5 quizzes
- 5 week duration
2. Key Chapters
3. Marketing Mix
4. Final Exam
2.6 Macro Environmental Analysis
In this chapter you give details about the environment where your company will be operating. Your marketing plan can be local or it can be for the international market. Whichever market you are trying to capture, each market has its macro factors that impact the functioning of the organization.
You have to make sure that the macro factors are positive for your marketing plan. If it is positive you should mention it in your marketing plan. If it is not positive, you should rather consider changing your goals and market where you want to sell your product rather than preparing your plan. No investors or senior management will agree to enter into the market where macro situation is hostile.
PESTEL is an analysis tool you can use to conduct macro environmental analysis. It is more of an acronym than a tool. PESTEL stands for Political, Economic, Social, Technological, Environmental, and Legal.
These factors are macro and has huge impact on the companies. You have to know if the government is making policies that are favorable to the company. You have to know if the income earned by your target customer is enough to enough to let them buy your product. You have to know whether government has banned your product citing environmental impact. And there are many more similar questions for which you have to assess the macro environment.