Essay on "Macro Environment"

Quoted Instructions for "Macro Environment" Assignment:

Assignment 1: Analysing Marketing Opportunities

Due date: Wednesday 1st July, 2009

Value: 20%

Length: 2000 words (please provide a word count somewhere on your cover sheet)

Format: Structured-essay format (No Executive Summary and No Content Page required, the use of relevant sub-headings is strongly encouraged, language is formal third person narrative in full sentences *****“ do not use dot points and do not use first person narrative such as I-we-our-my etc., also refer below)

Context: The assignment context for your assignment is a manufacturer of a new Breakfast Cereal This topic will give you a great deal of scope to an***** the 6 macro-environments. NB. You do not use an existing manufacturer (so no Kellogs , or Sanitarium or Uncle Toby etc.,), you create a hypothetical company who is making, developing for the market a new Breakfast Cereal. Students who do not adhere to our topic will receive an automatic N for this assignment.

Task: This essay is an examination of the changes and trends of the 6 macro-environments so begin with a look at ch5 (Kotler et al, 2007) textbook to find out what the 6 macro-environments are.

The Macro-environment is an important concept to marketing, it is outside or external to the organisation and consists of 6 areas *****“ Political (and legal), Cultural (and social), Demographic, Technological, Economic and Natural (supply, availability and cost of resources of natural resources). The organisation has less influence and control over the external environment, than it has over the internal environment. Therefore, in this highly competitive, complex and dynamic environment it is vital that marketers and organisations know about the changes, trends and patterns in these environments. Marketers base their marketing strategies, plans and opportunities to meet the current and future needs of consumers by acquiring this knowledge. This is the type of knowledge that you need to gather for the manufacturer of this Breakfast Cereal.

Successful marketing management involves a close analysis of each of these six macro-environments to reveal the current trends and changes in these macro-environments. This type of analysis (research) is usually performed by the marketing manager and is referred to as a situational analysis. The analysis will present the opportunities of such a new product, it will also help the manager establish who the target market will be (this is the task of the second assignment) and also provide the marketing manager with some direction in relation to the marketing strategies (product, place, price and promotion) for this new product. It is worthwhile here to pause and briefly consider what is meant by these 4Ps. Product considerations may cover such things as product design, features, benefits, packaging and so forth, for example a macro-environmental change is the cultural aspect of healthier, low fat diets therefore the product would feature low fat and high protein. A packaging consideration may emerge after further analysis of the cultural environment that consumers are far more concerned with the environment; therefore the product is packaged in reusable containers. Place considerations may cover such areas as the availability and distribution of the product, again a cultural factor is the busy lifestyles and time poor households this can be also coupled with a demographic factor of the high employment growth of women, or more women participating in the workforce therefore convenience is an important consideration, therefore the marketing manager in analysing this trend would rightly conclude that this product has to have an intensive distribution and be readily available in all leading supermarkets. Equally this cultural aspect of time poor and looking for convenience would make the product popular because of the convenience in its ability to be eaten straight away no cooking required for example .

The current economic environment may reveal that higher unemployment rates and reduced levels of economic growth are making consumers much more cautious about their spending therefore the product should be economically priced for the budget conscientious consumers and further to this perhaps placed in a *****˜no frills***** supermarket chain like Aldi. But note this analysis comes only after credible research of the economic environment, actual data, figures of interest rates, unemployment rates, GDP economic growth, consumer spending levels and consumer confidence thus from an examination of evidence *****“ it is not based on general knowledge or hearsay, so you must always reference and source evidence.

The ESSAY should examine the situation that is relevant for the product a Breakfast Cereal in each of the macro-environments; Economic, Demographic, Cultural, Technological, Natural, Political and an***** the impact on the product and the future marketing strategies which will be outlined in the second assignment based on the current macro trend. For example a Political trend may be the legal emphasis on drink driving or the crack down on parents/ adults smoking in cars with children *****“ although both current trends these would not be relevant to the product, market or marketing strategies. But the political and legal environment that requires compliance with food health safety standards would be relevant to, so we see the ingredients /contents listed on the packaging.

Structure: Although it is a formal essay structure, in most business subjects and certainly in marketing, you are required to use Headings and Sub-headings. Therefore you should use Headings and Sub-Headings at the beginning of each new section. But you must write in full sentences and in paragraphs. Also do not use first person narrative *****“ do not use - I *****“ our *****“ we, use third person narrative i.e The xyz (name of the hypothetical organisation) organisation has undertaken a situation analysis to examine the current changes to the demographic patterns in Australia.

Essay Structure:

INTRODUCTION: Provide a brief description of the product (e.g. where the business is located, any distinct features the business may have etc) and the purpose of the assignment.

Introduction

Allocate approximately 100 words to briefly introduce the hypothetical company and the product. Note this is at the product*****s developmental stage (it is been developed but not introduced to the market, it can still be refined after feedback from the marketing manager). Also before it is introduced to the market, the marketing team still has to plan the marketing strategy (this is the task of assignment 2), such a macro-environmental analysis helps to plan the marketing strategy. Briefly, explain the purpose of the task, this is where Marketing theory comes into it, define marketing, also discuss marketing as a managerial process that involves an analysis, examination, research, strategic planning, planning marketing strategies, implementing marketing strategies after researching external environments to establish target markets etc., The purpose of this task is to gather information about the market*****s external macro-environment.

Analysing the macro-environment (approximately 1700 words)

Using each of the 6 components of the macro-environment identify trends that will impact upon the product*****s target market or marketing-mix. This means that for every trend identified (e.g. the demographic trend towards ageing population), you should briefly identify its relevance by specifically discussing its impact upon the potential target market, product strategy etc (e.g. if the topic was cosmetics, the demographic trend towards ageing may encourage you to alter your product strategy by creating anti-ageing creams). While you should use actual statistics to support the analysis (e.g. the Australian Bureau of Statistics at http://www.abs.gov.au/ will help you with your demographic analysis), the emphasis should be on marketing theory and illustrating your ability to uncover trends that will have a relevant and significant impact on subsequent stages in your marketing plan. You do not have to allocate equal levels of discussion to all six environments.

6 Headings of each Macro-Environment (in any order)*****“ see chapter 5 of textbook Kotler et al 2007

Economic

Demographic

Cultural

Natural

Technological

Political

Because this is an academic subject that requires academic theory and research define each of the above concepts and reference your sources. Then proceed to discuss and an***** the situation in each environment For example under demographic and economic macro-environment, a comment that Australian women are participating in the workforce, contributing significantly to household incomes, having fewer babies. (Kotler, et al 2007) nb. I have acknowledged Kotler as my source and I have demonstrated research. Then my analysis and theoretical application for example; This would tend to mean that there is strong market opportunity for the breakfast with an added women*****s vitamin supplement.

Further example from a previous assignment 1 in Marketing

I have provided a short extract from a previous first assignment to serve as an actual example of how you might approach your assignment. I have also provided explanations behind each of the actions taken, to show how they meet the *****˜essential***** 21 assignment tips that you have in the assessment folder (e.g. tips 10, 12, 14, 15, 17, 21). NB this is an older edition of Kotler and not the same context topic as yours but the same requirement.

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Example (Note: The topic for this extract was a music retailer not our topic for this assignment)

According to McCarthy et al (1997) the cultural/social environment refers to external factors that affect how and why people of the same culture live and behave as they do. The social trend towards mysticism and spiritualism (Kotler et al 2004) suggests that Funky Music should alter its product strategy to include more new age music as well as meditation and yoga self-help tapes. The increasing importance of health (Assael et al 1995) also supports the notion of modifying the product strategy to include such tapes because demand for healthy activities such as yoga can be expected to increase. Increasing patriotism (McCarthy et al 1997) may also influence the product strategy of Funky Music, requiring it to stock more Australian music and to favour CD*****s made in Australia.

The natural environment *****involves natural resources that are needed as inputs by marketers or which are affected by marketing activities***** (Kotler et al 2001, pg 134). While factors such as increasing energy costs and shortages of resources (McColl-Kennedy et al 1994) are noteworthy, they are unlikely to have a significant influence over the marketing strategy of Funky Music in the very near future. Therefore no objectives will be devised for Funky Music based on current developments in the natural environment.

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Analysing this Example

1. To state the obvious, in a unit entitled Marketing Theory and Practice, it is essential that students illustrate their understanding of marketing theory by including it in their answer. This example satisfies this (tip #15) by defining the cultural environment prior to discussing it. For example, *****The cultural/social environment refers to external factors that affect how and why people of the same culture live and behave as they do (McCarthy et al 1997)*****.

2. It is essential that students reference their work (tip #10). This is necessary for two reasons: (1) failure to reference the work of another is plagiarism and automatic grounds for failure; and (2) providing an argument that is not referenced makes about as much sense as fronting up to court without any evidence to support your case. In the extract you will see that both the references to theory (e.g. the definition of the cultural environment) and the trends (e.g. increasing health consciousness) are referenced. By referencing the theory in your assignment you also highlight its theoretical content, thereby further satisfying tip #15. See Q Manual Ch10 on referencing.

3. Make sure you only discuss relevant topics (tip #14). The extract does this in two ways. Firstly it goes beyond simply identifying trends to specifically discussing why they are relevant to the marketing plan (e.g. *****The social trend towards mysticism and spiritualism suggests that Funky Music should alter its product strategy to include more new age music as well as meditation and yoga self-help tapes*****). This is important because you are undertaking an analysis of the macro-environment to help devise a better marketing plan. If you do not link your trends to subsequent stages of the marketing plan (such as the product strategy as the extract has done), then they are not relevant to the plan. Secondly, it only discusses those trends that will have a significant impact upon the marketing plan (e.g. *****While factors such as increasing energy costs and pollution are noteworthy, they are unlikely to have a significant influence over the marketing strategy of Funky Music in the very near future. Therefore no objectives will be devised for Funky Music based on current developments in the natural environment*****).

4. Related to the previous point is the notion that students should provide a balanced discussion between marketing theory, trends and their own analysis (tip #17). There is evidence of this throughout the extract, with the mention of every trend being supported by the student*****s own analysis of its impact on the marketing plan.

5. Finally, please note how the student has addressed the topic from the perspective that they are in charge of this hypothetical firm (Funky Music) and that they are providing their own analysis and ideas (rather than regurgitating the actual marketing plan of some other firm). By doing this they have satisfied tip #21. But also note the formal third person narrative *****“ this person did not use my, I, our or we.

Some tips on referencing format (tip #11)

Referring back to the extract, please note the following points about how the student referenced their work;

a. The reference to the definition of the natural environment not only includes the author*****s surname and the year of publication, but the page number as well. This is because, having directly quoted from the Kotler text a page number must be provided. No page number is required when there is no quote involved;

b. The references to the two Kotler and McCarthy texts only include the surname of the first mentioned author and the year. This is because where there are 3 or more authors you only need to name the first one, with the *****˜et al***** indicating that this is an abbreviated reference; except on the very first citation of the textbook with multiple authors *****“ then you must acknowledge all authors thereafter, in second and subsequent references use Kotler et al 2007.

c. The references appear within the sentence they refer to (e.g. the full-stop comes after the complete reference, not before it);

d. References can take two forms. In the first, the reference comprises a part of the actual sentence. For example, *****According to McCarthy et al (1997) the cultural/social environment refers to *****¦*****. In the second form, the reference is separated from the actual sentence by brackets. For example, *****the natural environment *****involves natural resources that are needed as inputs by marketers or which are affected by marketing activities***** (Kotler et al 2001, pg 134)*****. While either method is fine, I personally prefer the second form (otherwise too many of your sentences will begin with phrases such as *****according to*****).

Some tips on References format (tips #12 and #13)

Using the aforementioned extract, these texts would appear in my Reference List in the following format; NB, these can be additional academic books for you to source

References or Reference List

Assael, H., Reed, P., Patton, M. (1995), Marketing Principles & Strategy, Australian edition, Harcourt Brace, Sydney.

Kotler, P., Brown, L., Adam, S., & Armstrong, G. (2001), Marketing, 6th edition, Pearson, NSW.

McCarthy, E., Perreault, W., & Quester, P. (1997), Basic Marketing: A managerial approach, 2nd edition, Irwin, Sydney.

McColl-Kennedy, J., Kiel, G, Lusch, R., & Lusch, V. (1994), Marketing, 2nd edition, Nelson, Victoria.

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Please note the following;

a. Each text appears in alphabetical order by the surname of the first listed author;

b. If a book contains multiple authors, the surnames should be provided in the same order as they are provided on the book itself (e.g. do not re-arrange them into alphabetical order);

c. The entries contain full name details. This not only means initials, it means that the names of all authors must be provided (e.g. the term *****˜et al***** used when referencing cannot be used in a reference list);

d. Each listing follows a set sequence (e.g. name, year of publication, title, edition number unless it*****s the 1st edition, publisher, where published);

e. The reference list should go at the very end of the assignment and be provided on a separate page.

Website references:

Data or figures from the Australian Bureau of statistics, in text reference egs. Current economic conditions are very favourable for consumer spending with Australia*****s unemployment level falling to 4.8%. (ABS, 2007)

And in the reference page I would provide the full url address

www.abs.gov.au and the title of the article and name of the author and the journal article and date if applicable and the date.

NB. Wikepedia is not a recognised academic source, so do not use it

Conclusion

Approximately 200 words. The conclusion is a vital element of your essay, it leaves a lasting impression on the marker as it is the final piece in your essay. Please ensure that no new information or research is included it should be a sum up of your essay, but not a sum-up of the purpose of this task. So the main key points of your research and analysis, is what should be written here. Again avoid general sweeping comments for example by looking at the 6 macro-environments Company XYZ is in a sound position to successfully launch product ABC. This really tells me nothing, look at your textbook chapter 4 page 154 under Fast Fitness the case study look at section 3.6 Macro-environment situation. This is a good example of a sum-up of their environmental situation and then for a great conclusion they would include a brief sum-up of the actions, strategies to be actioned, implemented. A fast fitness program will be introduced in the market that combines personal training and cardio yoga, that is aimed at the professional 35 to 55 age group.

The conclusion is the place to discuss any unresolved findings or issues that may have arisen from your research and analysis.

Reference Page

Always your last page, important to format correctly as per the Q Manual ch 10. Our textbook Kotler et. al is the current 2007 edition. For web site addresses see the earlier example but in text simply acknowledge (ABS, 2007) and then include the longer html address in the reference list for 2 or more (ABS, 2007) references simply distinguish with a letter next to it egs (ABS, 2007 (a)) if it has a different html address

International CONTEXT: of Macro-Environment

International students should choose to research this assignment in light of the macro-environment of their own country, but if you wish you may address the Australian macro-environment context. So if you live in East Timor or Singapore or India etc. an***** your own macro-environment not necessarily Australia*****s. I certainly enjoy reading the international perspective.

CRITERIA SHEET: MAKE SURE YOU LOOK AT THE CRITERIA SHEET FOR ASSIGNMENT 1 and ATTACH A COPY OF THIS CRITERIA SHEET WITH YOUR ASSIGNMENT *****“ it should be your last page after your References and will be used by your marker to provide you with feedback

i can email you a more direct assignment question sheet and a marking guide.