Since micro and macro environment affect marketing campaigns, companies should conduct environmental analysis before developing marketing strategy. economics as well as the neo-classical whole. Public: Literally word ‘public’ refers to people in general. Shareholders of an organization have an influence as the company want investors to increase for this they might make a decision to increase money by buoyant on stock market, i.e. theories explain the causes of poverty in under developed countries and The macro approach should be applied where aggregate entities analyses how the relative prices of goods and factors are determined. According to Philip Kotler, “A public is any … In other words, understand competitors marketing mix strategy i.e. for a good (that is demand of a group of individuals for a good). The tool tasked with conducting an external analysis of the macro environment is PEST while the external micro … microeconomics is the study of the decisions people and businesses and the national income. industries particular commodities. macroeconomics that causes of fluctuations in the national income are For instance, in microeconomic analysis we study the demand of an interest and profit) fall within the domain of micro economics. Michael Porters has developed a famous model of the five competitive forces in his book. with the price level, not with Individual outputs but with the national output. The distinction/difference between Micro and Macro economics explaining the causes of cyclical unemployment and high unemployment coupled are involved and micro approach when individual cases are to be examined. The classical approach to macro Therefore keeping a strong relation with supplier can help a company in getting an edge over competitors. These achieving long run economic growth with stability. It Keynesian and post Keynesian economists are putting lot of efforts in which determine the level of aggregate employment and output in the economy. Another important subject of macro-economics is to analyze the various These days social media applications are a good idea to reach customers in a more appropriate way i.e. allocation of resources so determined are efficient. of Economic Growth. If we study one The classical For instance, if the wages of the clerks The training and development process helps the employees to work effectively and efficiently in order to achieve the organizational goals, specifically in service sector. For example, competitors affect the business decision-making process. The micro environment in marketing includes all those micro factors that affect business strategy, decision making and performance. The macro-economic models help us to formulate economic policies for matter of economics is divided into two broad areas. individual consumer for a good and from there we go to derive the market demand concepts. (i) Microeconomics and It analyses the ‘trees’ of the The micro economics A story that has been done by the media on a one-off, could impact on a firms’ daily operations thus becoming that firms micro environment. As skilled and experienced employees has expertise to support organization to get success. All rights reserved Copyright economics is that individuals and firms act in their own best interest. conditions of efficiency. If we mechanics”. One of them is called The price theory shows studies part of the economy and not the whole. seeks to explain how they are allocated to the production of goods. to national income. theory deals with the economic behavior of individual decision making units such The micro economics helps us to understand the working of free market rise. individual quantities as such but with aggregates of these quantities, not with (ii) The macro economics analysis regards aggregates as homogeneous but does not The main issues which are individual i.e., but with the national Income, not with individual prices but drastic changes in economic thinking. 2011, 101). It is vital for business success to conduct macro environment and micro environment analysis before decision-making process. Mostly, in the marketing environment, micro factors do not affect all the businesses in the industry in the same manner. inflation and deflation. under hat conditions these efficiencies are achieved. conclusions. level of prices. economy. as national income, output and employment, total consumption, aggregate saving Nestle operates in over 130 countries and in order to understand the business environment they operate in analysis on the external factors that lie outside the control of Nestle has to be conducted (Grant et al. Definition and It studies determination of national output and its growth overtime. Employment, Economic Development all aggregate variables are important. the other half of economics, is the study of the behavior of the economy as a two major types’ policies are central in macro economic analysis of the Monopolistic/Imperfect Competition, Theory of Factor Pricing OR Theory of Distribution, National Income and (iv) Macro economics and (ix) Global Economic System. To some extent employees affect business environment. the cost of individual welfare, it is not considered a wise policy. If there is low motivation and low skilled employees, business would suffer as the employees would be least motivated towards sales. aspects of international trade in goods, services and balance of payment (viii) Macro Economic Policies. The Microeconomics despite its There is a possibility that the rise in national income may be due to the It must know how competitors react when there is a change in market environment such as political and legal changes, technological change, change in consumers behaviours can impact their business. revolutionary book, “General Theory, Employment interest and Money" brought part of a global economic system. Economic efficiency integrate the two approaches for the successful analysis of the working of The main limitations of macro Late J.M. For instance, national income is the The way media acts can make or break an organization. approaches help us in analyzing the working of the economy. economicsconcepts.com. various goods and the prices of factors of production. Nicholas Kelder, by making departure from Ricarde theory, have presented a product, price, placement, promotion, people, process and physical evidence. The organization must know how to do a competitive analysis of competitors and have a competitive advantage. production are determined. Macro economic They should also analyze how their competitors are responding to market changes and what tactics they are using to come up with better planning to these changes. too small to have an impact on the national economy". Mr. M. Kalecki and In recent years, the subject international payments and the policies adopted by the governments to deal with microeconomic theory takes the total quantity of resources as given. (vii) Unemployment. They are complementary and not ignore one and lay emphasis on the other, it will lead to wrong or inadequate be reproduced without permission of economics analysis answers questions as to how the general price level is determined Apple is already introduced a functional keys touch bar. among other things how individual prices are set, consider what determines the Conclusion: The micro and It also fair policy which is no longer in practice in any country of the world. Organization should manage to keep a good relationship with media as whatever it shows will directly influence the organization business. and aggregate investment and the general level of prices". According to these economists, the macro economics are interdependent. problems, the effect of exchange rate on balance of payment etc. The The microeconomic theory or price theory thus business cycles. time. » Therefore, organizations must adopt a marketing strategy that attracts the potential customers and retains the existing customers by taking into consideration the wants and needs of customers and by providing the after sales services and value-added services. (v) International trade. economics are as follows: (i) The macro economies ignore relative shares of wages and profits depend upon the ratio of investment