Discuss Why Micro Is More Important Than Macro to Marketers

question 33

Essay

Discuss why micro is more important than macro to marketers. ANS Many authors, notably Porter, have made a distinction between the very broad forces of the macro marketing environment discussed up to now as political, legal, regulatory, societal, technological, economic/competitive and a set of more company-specific forces often termed the micro marketing environment forces. The distinction is that the broad macro forces have an impact on every organization operating in a particular market, from manufacturers to distributors to customers, and such an impact is largely universally felt by such organizations. The micro forces, on the other hand, are still forces external to the organization and not directly controllable, but often have an organization-specific impact subject to the characteristics and status of the individual business. Organisation, buyers, competitors, publics and distribution channels are examples of the micro-marketing environment. PTS: 2 DIF: Moderate REF: The micro marketing environment 8. What factors influence the willingness to spend?

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Definitions:

Acid-Test Ratio

A stringent test that indicates whether a company has enough short-term assets to cover its immediate liabilities without selling inventory.

Current Liabilities

Current liabilities are a company's debts or obligations that are due within one year.

Liquidity

Refers to how quickly an asset can be converted to cash. Liquid assets can be converted to cash quickly, whereas illiquid assets cannot.

Operating Cycle

The period of time it takes for a business to purchase inventory, sell products, and receive cash from sales.