Page 34 - EBOOK DPM 10013 POM-FINAL 25.10.2021

Table 2.4:Company’s Macro environment That Affect The Company’s Ability To Serve Its
Customer

No The Company Macro environment

1 Demographic Is the study of human population in terms of size, density, location,

age, gender, race, occupation, family structure, geographic
population shifts, educational characteristic, population diversity

and other statistics?

Important because it involves people and people make up markets.

2 Economic Economic for the marketing comprises the overall economy

including business cycles, consumer income and spending patterns
3 Natural The natural environment involves the natural resources that are

needed as inputs by marketers. Marketers should be aware of

several trends in the natural environments such as:

a) Shortages of raw material

b) Increased pollution
c) Increased government intervention

d) Environmentally sustainable

4 Technological Most dramatic force in changing the marketplace with many positive

and negative effects.

Marketers use technology to improve the quality of products and
services provided by their organizations nowadays.

Technological developments provide important information and

opportunities to meet customer’s needs.

Provides new markets and new opportunities like internet,

medicine, credit card, communication.
Issues in technological environment:

a) Rapid pace of change

b) High R&D budgets

c) Focus on minor improvement

d) Increased regulation

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