Question

Q.1. Examine how external/macro-environment forces are impacting overall (consumer & business) demand for security/surveillance products & services within the US market. Macro-environmental factors include:

a) social/cultural

b) technological

c) competitive

d) economic

e) political & legal/regulatory

you can use this to answer: Alarm.com

Answer 1

Below are the explanation given to macro environment forces which impacts the business.

1. Social/cultural factor: In the social cultural arena, marketers must understand the people views of themselves, others, organizations, society, nature and the universe. They must market the products that correspond to society’s core and secondary values and address the needs of different subcultures within a society. The beliefs, values and norms of a society determine how individuals and organizations relate to each other.

2. Technological factor: The most important factor, which is controlling and changing the human society and even impacting the future, is technology. Through the years, technology has released such wonders as penicillin’s, open heart surgery etc. technology has literally transformed the way people think work and relax. Technology has changed the way the people communicate with the advent of internet and telecommunications system. And with the revolution in communications have come few ways of doing the business.

3. Competitive factors: competition shapes the business. A study of the competitive scenario is essential for the marketer. Competition is one of the important criteria to be selected during business setting. After the competitors are identified, the task is to understand them and their strategies. i.e to analyze their strengths and weakness and strategic group of competitors.

4. Economic factors: The available purchasing power in an economy depends on current income, prices, savings, debt and credit availability. Marketers must pay careful attention to the trends affecting the purchasing power, because they can have a strong impact on business, especially for companies whose products are geared to high income and price sensitive consumers. The important point to consider is to find out the effects of economic prospects and inflation on the operation of the firm.

5. Political & legal/regulatory factors: political pressure groups influence and limit the organization. The political and legal environment factors consist of laws, government agencies, and pressure groups that influence and limit various organizations and individuals. Sometimes these laws also create new opportunities for business. Two major trends in the political and legal environment are the increase in business legislation and growth of special interest groups.