Macro & Micro economics Essay Example | Topics and Well Written Essays - 1250 words

Macro & Micro economics - Essay ExampleThe micro and the macro environmental factors influence the mart and the marketing decisions. The yield of a company considers the differentiation strategies so that the product is accepted by the consumers. Thus, for influencing the market the marketing decisions on the product is important. The price of the product also influences the response of the market towards purchase of the product. This influences the marketing decision for fixing a competitive price. Similarly place and promotion for set and sell of the product influences the market. The decision on the distribution system of the products enables a smoother access of the products by the consumers. The decision on promotional strategies on the seat of the target customer portion influences the behaviour of the market. Similar to the micro environmental factors, the macro environmental factors like the political scenario influences the operations of the market. Thus marketing decisi ons should consequence into consideration the uncertainties of the political factors. Similarly, the other macro environmental factors like the culture of the society, surge in economic conditions, legal constraints influence the market investments. These factors are non under the direct control of the market and hence, the marketing decisions are influenced by the uncertainties associated with the market performance. Segmentation variables to define a market segment The various division variables that need to be considered to define a target market segment are the sizes of the market segments, growth rate of the market segment, suitability of the market segment with compliancy to the product of the company, access of the market segment by the company and the purchasing power of the market segment. The various market segments are identified ground on various features like the demographics, psychographic and the geographic factors. The target size of the market segment is identi fied based on the suitability of the market segment with respect to the product. The growth rate of the market segment is then determined to estimate whether its matches the required growth rate and the future prospects. After determining the suitability of the market segment, the potential access to the market segment is determined by the firm. Finally the purchasing power of the market segment is analyzed to determine whether it matches the price of the product. By considering all these segmentation variables, the target market segment is defined that matches the requirement of the company with respect to the desired features. Different types of pricing strategy The various ways of maximization of profits of the business lies at the cutting of salutes, increase in sales and increasing the profits. In a situation where costs are trim to the limit and its difficult to increase the sales of the company, the pricing strategies are adopted in such a scenario. The different pricing s trategies are namely, cost plus pricing, market-oriented pricing and penetration pricing. The cost plus pricing method takes into consideration the basic cost of production and then adds a certain parcel to the basic cost to determine the sale price of the pro