Micro and Macro Environment
Uploaded by
NirmanaMicro and Macro Environment
Uploaded by
NirmanaRe-cap of Session 3
Microenvironment + Macroenvironment Recap
1. Microenvironment
(Immediate actors directly impacting the business)
Key Players:
• Customers:
o Analyze digital behaviors (paths-to-purchase, multi-screening, eWOM).
o Use personas, journey maps, and conversion models (e.g., awareness → purchase).
o Segment by demographics, psychographics, and behavioral traits (e.g., mobile vs.
desktop engagement).
• Competitors:
o Benchmark using Porter’s Five Forces (threat of substitutes, new entrants, rivalry).
o Monitor digital tactics (SEO, content marketing, pricing strategies).
o Assess smart product ecosystems (e.g., Amazon Alexa, Google Home).
• Suppliers & Intermediaries:
o Evaluate partnerships (e.g., affiliates, influencers, aggregators like Google Shopping).
o Optimize channel structures (disintermediation vs. reintermediation).
• New Business Models:
o Explore digital revenue streams (CPM ads, subscriptions, affiliate commissions).
o Use the Business Model Canvas to map value propositions and customer segments.
Tools:
• Customer Analysis: Google Analytics, social listening tools, personas.
• Competitor Benchmarking: SEMrush, SimilarWeb, Moz.
• Marketplace Mapping: Identify search intermediaries (Google), social networks, and
destination sites.
2. Macroenvironment
(Broad external forces shaping the market)
PESTLE Framework:
1. Political:
o Government regulations (e.g., GDPR, antitrust laws affecting tech giants like Google).
o Trade policies impacting global e-commerce (tariffs, cross-border data flows).
2. Economic:
o Global economic trends (recessions, currency fluctuations).
o Digital divide (access to internet/mobile in emerging markets).
3. Social:
o Cultural shifts (social media trends, sustainability expectations).
o Demographic changes (aging populations, Gen Z preferences).
4. Technological:
o Innovations (AI, IoT, 5G, blockchain).
o Cybersecurity risks and data privacy concerns.
5. Legal:
o Intellectual property laws, digital advertising regulations.
o Compliance with regional laws (e.g., EU’s Digital Services Act).
6. Ecological:
o Sustainability demands (eco-friendly packaging, carbon-neutral logistics).
o Impact of digital infrastructure (e.g., energy consumption of data centers).
Impact on Digital Marketing:
• Opportunities: Leverage AI for personalization, tap into green consumerism.
• Threats: Regulatory fines, reputational risks from data breaches.
Case Study: Boo.com Failure
(Connecting Micro + Macro Factors)
• Micro Failures: Poor tech execution (slow load times), unrealistic customer acquisition costs.
• Macro Blindspots:
o Economic: Overestimated disposable income of Gen X in 2000.
o Technological: Dial-up limitations vs. high-bandwidth site design.
o Social: Misjudged global fashion preferences and return rates.
Key Takeaways for Students
1. Microenvironment: Focus on direct relationships (customers, competitors, suppliers).
2. Macroenvironment: Stay agile to external shifts (regulations, tech trends, cultural values).
3. Integration:
o Use PESTLE to anticipate risks/opportunities.
o Align micro tactics (e.g., SEO) with macro trends (e.g., voice search growth).
Why This Matters:
• Microenvironment determines how you compete.
• Macroenvironment defines where and when you compete.
• Successful digital strategies balance both layers (e.g., adapting to GDPR while optimizing
customer journeys).
