Q1. Suppose Walmart has decided to start its operations in Pakistan. Explain how Factors of macroenvironment affect its marketing decisions
Explain how Factors of the macro-environment affect its marketing decisions
Demographic factors- these factors are related to people; age, income, occupation, etc. this factor determine the market segments that Walmart will concentrate on. These factors determine what market they are targeting.
Economic factor- these factors affect the spending habits of the people in a country. Walmart will have to evaluate how much people will spend before they can launch the branch in Pakistan. They also need to know the GDP real growth rate, unemployment, inflation, and spending pattern this will help Walmart decide what prices they will market their product with.
Socio-cultural- affect society basic preferences, value, and behavior. Walmart will have to study these factors for the people of Pakistan to avoid failure. The context of marketing will be determined by these values.
Political forces- this involve law, pressure group and government agencies. Marketing decisions are strongly influenced and affected by developments in the political environment. Walmart will need to know What rules does it need to obey, How will the legislation affect the business, and What laws may limit the company’s ability to be successful