Macro environment – Economic, Socio-Cultural, Natural, and Technological Environment

The main components that constitute the Macro Environment

  1. The Economic Environment
  2. The Socio-cultural environment
  3. The Natural environment
  4. The Technological environment
  5. The Political and legal environment

The Economic Environment

The economic environment involves various elements which are associated with economic health, namely fiscal and monetary policy, exchange rates, interest rates, GDP growth rates, inflation, spending patterns, employment rates and other markers.

Addtionally – Consumers income, debt, savings and credit availability along with the price level determine the purchasing power

Countries can be bifurcated by the marketers using the following income distribution patterns:

  1. Very low incomes
  2. Mostly low incomes
  3. Very low, very high incomes
  4. Low, medium, high incomes
  5. Mostly medium incomes

Example: iPhone SE

The iPhone SE which is sold at a price of $399 is noticeably cheaper compared to the rest of the iPhone line up offered by the brand Apple’s determination to attract the new customers in countries like india and other upcoming markets is exhibited by its pricing

For those who aspire to buy an iPhone at the same time do not wish to overspend, the new iPhone SE is the perfect fit.

2. The Socio-Cultural Environment

To examine the aspects related to the characteristics of a country’s population, the social environment at the general or macro-environmental level can be analysed.

Data based on smaller geographical areas can be helpful as well

The social factors may provide the following information

  1. Culture and values
  2. Literacy rates and educational levels
  3. Income distribution
  4. Population distribution, mobility and growth rates

Example: McDonalds

McDonald’s offers regionalized variety of its menu among and within various countries, so as to attract and indulge local culinary traditions and tastes.

On the account of which, McDonald’s restaurants across the globe would not share the same products on their menu.

Let see some examples


Corn Pie – McDonald’s fans across Thailand can enjoy the sweet treat consists of a sweet, salty and creamy corn filling enclosed in the signature apple pie shell.

Hong Kong

Ebi Burger – Here the main delights are the seafood burgers. The golden Ebi Burgers consist juicy yet crisp shrimp patties. Having options offered with sides of either pineapple or breaded fish fillet.


The special offering is Thai Green Curry Chicken Burger – Crispy Chicken along with abundance of Thai Green curry sauce along with vegetable slaw served in an oblong bun.

South Korea

Special offering is the Bulgogi Burger – The special item found in McDonalds South korean menu is a pork burger. The Bulgogi Burger consists of a patty made out of pork dipped in sweet, sticky bulgogi sauce along with some lettuce and mayonnaise.


Special offering is Chicken McDo with McSpaghetti – It has spaghetti served along with a crispy chicken piece in a minced beef and tomato sauce, with cheese on top.

Saudi Arabia

Famous offering is McArabia Chicken – The Saudi Arabian McDonald’s serves McArabia Chicken which consists of a flatbread filled with two halal grilled chicken patties, along with tomato, lettuce, onions and topped with garlic sauce.

3. The Natural Environment

The ecological environment involves various elements consisting of sustainable development, climate and recycling capacity along with the pollution (water and air quality), energy sources and so on.

To keep a regular track of the ecological environment various organizations, involve watchdog groups, think ranks, and news networks. The ones who bring prosperity along with environmental protection will be rewarded with propositions.

Example: Lush

Lush is a United Kingdom based cosmetic retailer, which was set up by Liz Jensen and Mark Constantine. Lush does not test on animals, does not use materials that contain animal derivatives that are unsuitable for vegetarians and they purchase raw materials from sources that do not engage in procedure which involve testing on animals

They have a range of products which consist of soaps, shampoos, lotions, shower gel, creams, scrubs, masks, moisturisers and cosmetics for hair, face and body featuring ingredients of 100% vegetarian and even 80% vegan origin. Lush has operations spanned across 49 countries globally.

4. The Technological Environment

In order to collect data on research & development budgets, research, patent activity, the speed of technological transition and telecommunication facilities (Such as capacity of the bandwidth) the technological environment can needs to be analysed.

Factors such as the accelerating speed of change, differing R&D budgets, countless opportunities for innovation and the growing regulation of technological change are to be tracked by the marketers.

Example: Apple Watch 6

Coined as “The future of health in your wrist” considering the drastic change in the environment caused by the pandemic.

The features of the watch include

  • A revolutionary new sensor and app support to measure the Level of oxygen in the blood.
  • An Always-On retina display to give a quick update on the required fitness metrics.
  • Anytime, anywhere ECG calibration. [ A ground breaking innovation for a wearable device]
  • Apple Pay – Just by double tapping the side mounted button on the watch, one can access apple pay. It utilizes the Passbook app which has the default card data, along with an option to switch to any service the user wishes. The payment is confirmed by an alert which uses sound and vibration to notify the user once you hold up the device on the contactless terminal.

Example: Tesla Battery

Tesla declared its intention to create a “Tabless” battery in September 2020 which focussed on increasing the range and power offered by an electric car.

They had devised an idea of creating a latest design for a cell that was 80-millimeter-long and five times the energy density along with six-fold power output and a 16% growth in range.

Elon Musk the CEO of the company forecasted that there will be a significant reduction in costs as they intend to manufacture the battery in-house and eventually match the pricing of the gasoline powered vehicles.

5. Political and Legal Environment

The political and legal environment includes government agencies, pressure groups and laws that influence organizations and individuals.

Creating a possibility of new business prospects.

Whereas, Doubtfulness and confusion for companies may be triggered due to the foreign governments taking actions and imposing laws.

The political & legal environment consists of the following main factors or parameters

  1. Regulatory Oversight(general)
  2. Regulatory oversight of industry
  3. Perspective of people
  4. Nature and type of government
  5. Political views of governing parties
  6. Voting rates and trends
  7. Lobbying efforts by interest groups

Example – Government of India banned Chinese Apps

The “sovereignty and security” of the country was threatened by the Chinese applications, the Indian Government decided to ban these Chinese apps exceeding a number over 100, including the apps which were top in-demand including PUBG, TikTok, WeChat and Helo.

Example – China Banned Google

The searching via Google search in all languages was suspended throughout the mainland, the search results were terminated by showing a DNS error. The Government of China observes the content and the access to the globally popular apps and websites is difficult, making the internet in China a unique domain for itself.

China has incredibly strict norms with respect to censorship which are active since more than a decade, called as Great Firewall of China. The alleged guidelines consist of filtering specific URL’s and keywords, blocking of certain IP addresses, a complete control over internet which are not openly displayed by the country.