Macro Environment - Marketing of a Sample Product
2
Macroenvironment The macroenvironment consists of largersocietal forces that affectthe microenvironment and is shaped by demographic, economic, natural, technologic political and cultural forces.The company must analyse ChiliBed’s macroenvironment to determine which factors may pose threats or present opportunities (Armstrong, Adam, Denie ! "otler, #$%#&. The mar'et is divided into segments based on certain common traits in the pop for the purpose of demography (Armstrong, Adam, Denie ! "otler, #$ aging Baby Boomers) and *eneration +) in Australia’s population are most li to suffer from sleeping problems and disorders, as shown by statistics convey the two groups hold high regard for healthy lifestyles ( iller, #$%%& highlig ChiliBed’s opportunity to thrive. -conomic factors, factors that affect consumer purchasing power and spending patterns affect these generations, the consumers, as the *lobal inancial Crisis hit them the hardest as many of th investments were failed (Armstrong, Adam, Denie ! "otler, #$%#&. Conse/uentl spending habits changed to become more conscientious about their spending and loo' for a good /uality0price product relationship. The natural environment is dependant on the company’s natural resource usage. rising electricity bills, consumers want to avoid using air0condition ChiliBed is beneficial to this mar'et segment as the mattress will ad2ust tem to ma3imise utility. Therefore, the ChiliBed causes a reduction in electricit thus is not only financially beneficial for the consumer but also environment beneficial for society. -lectricity cost savings may lead to increased publi Technological forces create new technologies, creating new products a opportunities (Armstrong, Adam, Denie ! "otler, #$%#&. Technology is constan changing and adapting to new wants by consumers. Currently the ChiliBed is on the most superior mattresses on the mar'et. or the ChiliBed to 'eep up to d innovations and improvements need to be made to prevent the product obsoleten Chili Technology will also need to do research on potential competing brands
description
The macroenvironment consists of larger societal forces that affect the microenvironment and is shaped by demographic, economic, natural, technological, political and cultural forces. The company must analyse ChiliBed’s macroenvironment to determine which factors may pose threats or present opportunities
Transcript of Macro Environment - Marketing of a Sample Product
MacroenvironmentThe macroenvironment consists of larger societal forces that affect the microenvironment and is shaped by demographic, economic, natural, technological, political and cultural forces. The company must analyse ChiliBeds macroenvironment to determine which factors may pose threats or present opportunities (Armstrong, Adam, Denize & Kotler, 2012).
The market is divided into segments based on certain common traits in the population, for the purpose of demography (Armstrong, Adam, Denize & Kotler, 2012). The aging Baby Boomers and Generation X in Australias population are most likely to suffer from sleeping problems and disorders, as shown by statistics conveying that the two groups hold high regard for healthy lifestyles (Miller, 2011) highlighting ChiliBeds opportunity to thrive. Economic factors, factors that affect consumer purchasing power and spending patterns affect these generations, the two main consumers, as the Global Financial Crisis hit them the hardest as many of their investments were failed (Armstrong, Adam, Denize & Kotler, 2012). Consequently, spending habits changed to become more conscientious about their spending and to look for a good quality-price product relationship.
The natural environment is dependant on the companys natural resource usage. With rising electricity bills, consumers want to avoid using air-conditioners, therefore ChiliBed is beneficial to this market segment as the mattress will adjust temperatures to maximise utility. Therefore, the ChiliBed causes a reduction in electricity usage and thus is not only financially beneficial for the consumer but also environmentally beneficial for society. Electricity cost savings may lead to increased public interest.
Technological forces create new technologies, creating new products and market opportunities (Armstrong, Adam, Denize & Kotler, 2012). Technology is constantly changing and adapting to new wants by consumers. Currently the ChiliBed is one of the most superior mattresses on the market. For the ChiliBed to keep up to date, innovations and improvements need to be made to prevent the product obsoleteness. Chili Technology will also need to do research on potential competing brands and products in order to create new ideas to retain its market niche as growing technological advances significantly contribute to market competition.
Political factors influencing the macroenvironment are Laws, government agencies, pressure groups that influence or limit various organisations and individuals in a given society (Armstrong, Adam, Denize & Kotler, 2012). Introducing new products into the Australian market require products and marketing strategies to comply with the laws and regulations of the country. The strict policies on health and safety with regards to electrical products such as the ChiliBed must be approved and certified prior to sale in Australia (and New Zealand) and must be marked with the regulatory Compliance mark (SAA Approvals, 2014).
Sociocultural factors are reliant on forces that affect a societys basic values, perceptions and behaviours (Armstrong, Adam, Denize & Kotler, 2012). The number of wary consumers about health concerns in the market is growing, opening up opportunities for the ChiliBed as it focuses on providing body support and pressure relief. The benefits of using water rather than wires for heating highlight the health benefits associated with using the ChiliBed. Obtaining the latest technology item and these factors may shift views from competitors to the ChiliBed due to the additional benefits and value of the product. However, the buy Australian attitude (Australian Made, 2014), may pose a threat to the American-developed ChiliBed.
Armstrong, Adam, Denize & Kotler, 2012, Principles of Marketing 5th Edition
Australian Made Campaign Limited, 2014, accessed 3 September 2014, http://www.australianmade.com.au/why-buy-australian-made/
Miller, Jon D., 'Active, Balanced, and Happy: These young Americans are not bowling alone'.The Generation X Report,Fall 2011, accessed 1 September, 2014, < http://home.isr.umich.edu/files/2011/10/GenX_Report_Fall2011.pdf>
SAA Approvals, 2014, accessed 3 September 2014,
