Marketing Situation Analysis of Macro Environment of Hypothetical Company

Topics: Marketing, 2009, Microwave oven Pages: 10 (2538 words) Published: May 4, 2010
MARKETING SITUATION ANALYSIS

INTRODUCTION

Enviroelectrics is a medium sized company with a focus on providing energy efficient, operator friendly products and is located in Port Melbourne with access to the bay and arterial roads for shipping and trucking of products. The company consists of a strong team with a management group that works closely with employees. The company is preparing to release a new microwave oven to the market and is in the initial planning and development stages. Prior to moving forward the company will carry out a marketing situation analysis on the external macro-environment which consists of the demographic, economic, natural, technological, political and cultural environments. The macro-environment encompasses factors beyond the immediate environment that can affect an organisation and represent general forces and pressures rather than institutions with which the organisation relates directly (Palmer, 2000). The analysis will be used to further refine the product and develop a marketing strategy which is essential for the product's success in the market place. Marketing is an organisational function and set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organisation and its interested parties (Keefe, 2004). The analysis of the macro-environment will identify trends that will impact upon the development of the microwave oven, the target market and the marketing mix.

DEMOGRAPHIC ENVIRONMENT

The demographic environment involves the study of the size and characteristics of a population. The age structure, geographic distribution, balance between males and females and the estimated future size of the population are all considered important factors. (Palmer, 2000). Monitoring changes in the size and age structure of the population is a crucial step in the future success of Enviroelectrics' marketing strategy for the microwave oven.

The demographic trend of continued high population growth will place the company in a positive position to possibly secure a large future customer base. According to figures released at the end of March 2009, Australia experienced a population growth of 2.1% which has not been higher since the 1950s and 1960s (Australian Bureau of Statistics, 2009 (a)).

Figures at this time also indicate Australia's population at 21,779,000, being an increase of 439,100 over the previous year (ABS, 2009 (b)). A continued population increase will provide the company with a solid basis to launch the new microwave oven. A key strategy will be to implement a plan to maintain sales growth in coming years. This could be carried out by gaining customer feedback over the first twelve months of sales and implementing any changes that will benefit future consumers which will lead to continued and possibly increased sales activity in line with the population growth.

The trend of Australia's aging population is set to continue at unprecedented levels as over the past twenty years the number of elderly people increased by 165%, compared with a total population growth of 29% over the same period (ABS, 2008).

The impact of the aging population will result in elderly people staying in their own homes for longer due to the limited number of beds available in nursing homes, coupled with the government's increase in funding to provide home care. In 2003-2004 the state and federal governments contributed $1.2 billion toward the Home and Community Care (HACC) Program which provides basic maintenance and support services to enable older people to remain living in their home and community and to prevent premature admission to long-term residential care (ABS, 2005). Enviroelectrics could benefit from the elderly remaining in their own homes for longer periods as this represents a new target market opportunity. The company could provide a microwave operating system which includes larger visuals and...

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