Republic of the Philippines

Department of Education
National Capital Region
DIVISION OF CITY SCHOOLS –
MANILA
Manila Education Center Arroceros Forest Park
Antonio J. Villegas St. Ermita, Manila

PRICIPLES OF MARKETING
Quarter 1 Week 5 Module 5

Learning Competency:
After going through this module, you
are expected to:
analyze the elements of macro- and micro-
environment; and
discuss the elements of macro- and micro-
environment and their influence on marketing
planning.

ABM_PM11-Ie-i-10

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 HOW TO USE THIS MODULE?
Before starting the module, I want you to set aside other tasks that will
disturb you while enjoying the lessons. Read the simple instructions
PARTS OF THE MODULE
below to successfully enjoy the objectives of this kit. Have fun!
1. Follow carefully all the contents and instructions indicated
in every page of this module.
 2. Write on your
Expectations notebook
- These are whattheyouconcepts about
will be able the after
to know lessons.
completing
Writing enhances
the lessons in the module. learning, that is important to develop
and keep in mind.
 Pre-test - This
3. Perform all will measure activities
the provided your priorinknowledge
the module.and the concepts to
be
4. mastered
Let your throughout the lesson.
facilitator/guardian assess your answers using the
 Looking Back to
answer key card.your Lesson - This section will measure what
learnings
5. Analyzeand skills did you
conceptually theunderstand
posttest andfrom thewhat
apply previous lesson.
you have
 learned.
Brief Introduction- This section will give you an overview of the lesson.
 Activitiesstudying!
6. Enjoy - This is a set of activities you will perform with a partner.
 Remember - This section summarizes the concepts and applications of
the lessons.
 Check your Understanding - It will verify how you learned from the
lesson.
 Post-test - This will measure how much you have learned from the
entire module.

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 LESSON
5

Macro- and Micro-environment and their

influence on Marketing Planning
EXPECTATIONS

As we study and immerse ourselves in “Principles of Marketing” in the process, it is

necessary to know some Marketing Principles and Strategies. The module is
subjected to discuss Module 5 – Analyze the elements of macro- and micro-
environment and their influence on marketing planning.
Most Essential Learning Competency:
1. analyze the elements of macro- and micro-environment; and
2. discuss the elements of macro- and micro-environment and their
influence on marketing planning.

Let us start your journey in learning thru a Pretest.

Smile and Enjoy!

PRETEST

Matching-Type.
Directions: Match the statements below with the appropriate word/s in the box and
write the word/s in the space provided for before each number.

1. Refers to the environment which is in direct contact with the business

organization and can affect the routine activities of business straight away.
2. distils these data to show the critical items from the internal and
external audit. The number of items is small for forceful communications, and they show
where a business should focus its attention.
3. refers to the general environment, that can affect the working of all
business enterprises.
4. These factors are all about how and to what degree a government
intervenes in the economy or a certain industry.
5. This dimension of the general environment represents the
demographic characteristics, norms, customs and values of the population within which
the organization operates.

MICROENVIRONMENT POLITICAL FACTORS SOCIAL FACTORS SWOT ANAL

MACRO ENVIRONMENT

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 LOOKING BACK TO YOUR LESSON

TRUE OR FALSE.
Directions: Read each statement below carefully. Place True if the statement is
Correct and Place False if the statement false. Write your answer in the space
provided before the number.

1. Marketing Strategy is shaped by your business strategy, your marketing

strategy is your purpose; it's the offering you deliver, how you will deliver it and why your
marketing efforts will help you achieve your company’s mission and strategic goals. Once
you have your strategy, only then will you be able to develop an effective marketing plan.

2. Marketing Plan is driven by your strategy, your marketing plan is the

execution; the roadmap of tactical marketing efforts that help you achieve your marketing
goals. Your plan is your detailed campaign of what you will do, where you will do it, when
you will implement, and how you will track success.

3. Strategic Planning is a broad process that can address the entire business, or
a portion of the business.

4. The strategic plan involves adapting the firm to take advantage of

opportunities in its constantly changing environment. It is the process of developing and
maintaining a strategic fit between the organization's goals and capabilities and its
changing marketing opportunities.

5. Implementation is part where it turns strategic plans into actions that will
achieve the company's objectives. People in the organization that work with others both
inside and outside the company implement marketing plans.

BRIEF INTRODUCTION

The Marketing Environment

Every business organization is a part of the
business environment, within which it
operates. No entity can function in isolation
because there are many factors that closely or
distantly surrounds the business, which is
known as a business environment.
While microenvironment has a direct impact
on business activities, the macro environment
is a general business environment, which
influences all business groups at large. It is important to learn the business
environment, to understand the effect of various forces on business. Take a read of
Source:

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 Learning Module for Principles of Marketing

the given article to know the difference between microenvironment and macro
environment.
Microenvironment refers to the environment which is in direct contact with the
business organization and can affect the routine activities of business straight
away. It is associated with a small area in which the firm functions.
Indicates the microenvironment is a
collection of all the forces that are close
to the firm. These forces are very
particular for the said business only.
They can influence the performance and
day to day operations of the company,
but for the short term only. Its elements
include suppliers, competitors,
marketing intermediaries, customers
and the firm itself.
(1) Suppliers are the ones who provide
inputs to the business-like raw material,
equipment and so on, (2) Competitors
are the rivals, which compete with the
firm in the market and resources as well,
(3) Marketing intermediaries may
Source: https://keydifferences.com/wp-
content/uploads/2015/09/micro-environment.jpg include wholesalers, distributors, and
retailers that make a link between the firm
and the customers, (4) Customers / Consumers are the ones who purchase the
goods for their own consumption. They are considered as the king of business, (5)
The firm itself is an aggregate of several elements like owners like shareholders or
investors, employees and the board of directors, (6) it constitutes those outside
forces that are not under the control of the firm but have a powerful impact on the
firm’s functioning. It consists of individuals, groups, organizations, agencies and
others with which the firm deals during its business.

Source: Surbhi, S. (2020, February 03). Difference Between Micro and Macro Environment (with Comparison Chart). Retrieved
June 28, 2020, from https://keydifferences.com/difference-between-micro-internal-and-macro-external-environment.html

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 Learning Module for Principles of Marketing

Source: https://efinancemanagement.com/wp-content

SWOT Analysis

SWOT analysis draws the critical strengths, weaknesses, opportunities and threats
(SWOT) from the strategic audit. The audit contains a wealth of data of differing
importance and reliability. SWOT analysis distils these data to show the critical
items from the internal and external audit. The number of items is small for forceful
communications, and they show where a business should focus its attention.
Opportunities and Threats Managers need to identify the main threats and
opportunities that their company faces. The purpose of the analysis is to make the
manager anticipate important developments that can have an impact on the firm. A
large pet food division of a multinational company could list the following.

Strengths and Weaknesses - The strengths and weaknesses in the SWOT analysis
do not list all features of a company, but only those relating to critical success
factors. The general environment within the economy that influences the working,
performance, decision making and strategy of all business groups at the same time
is known as Macro Environment. It is dynamic in nature. Therefore, it keeps on
changing.

Source: Mind Tools, T. (n.d.). SWOT Analysis: – How to Develop a Strategy For Success. Retrieved June 28, 2020,
from https://www.mindtools.com/pages/article/newTMC_05.htm

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 Learning Module for Principles of Marketing

The study of Macro Environment is

known as PESTLE Analysis. PESTLE
stands for the variables that exist in
the environment, i.e. Political,
Economic, Socio-cultural,
Technological, Legal and
Environmental. These variables,
consider both economic and non-
economic factors like social concerns,
government policies, family structure,
population size, inflation, GDP aspects,
income distribution, ethnic mix,
political stability, taxes, and duties, etc.

Source:

Comparison Chart

Basis for
MICRO-ENVIRONMENT MACRO ENVIRONMENT
Comparison
Meaning Micro environment is defined Macro environment refers to
as the nearby environment, the general environment, that
under which the firm operates. can affect the working of all
business enterprises.
Elements COSMIC, i.e. Competitors, PESTLE, i.e. Political,
Organization itself, Suppliers, Economic, Socio-cultural,
Market, Intermediaries and Technological, Legal and
Customers. Environmental.
Nature of elements Specific General

sAre these factors Yes, but to some extent only No

controllable?

Influence Directly and Regularly Indirectly and Distantly

Source: Surbhi, S. (2020, February 03). Difference Between Micro and Macro Environment (with
Comparison Chart). Retrieved June 28, 2020, from https://keydifferences.com/difference-between-micro-
internal-and- macro-external-environment.html

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 Learning Module for Principles of Marketing

Source: https://www.business-to-you.com/scanning-the-environment-pestel-
analysis/

A PESTEL analysis or PESTLE analysis (formerly known as PEST analysis) is a

framework or tool used to analyses and monitor the macro-environmental factors
that may have a profound impact on an organization’s performance. This tool is
especially useful when starting a new business or entering a foreign market. It is
often used in collaboration with other analytical business tools such as the SWOT
analysis and Porter’s Five Forces to give a clear understanding of a situation and
related internal and external factors.
PESTEL is an acronym that stand for Political, Economic, Social, Technological,
Environmental and Legal factors. Each factor will be elaborated on below:
1. Political Factors:
These factors are all about how and to what degree a government intervenes in
the economy or a certain industry. Basically, all the influences that a
government has on your business could be classified here. This can include
government policy, political stability or instability, corruption, foreign trade
policy, tax policy, labor law, environmental law and trade restrictions.
2. Economic Factors:
Economic factors are determinants of a certain economy’s performance. Factors
include economic growth, exchange rates, inflation rates, interest rates,
disposable income of consumers and unemployment rates.
3. Social Factors:
This dimension of the general environment represents the demographic
characteristics, norms, customs and values of the population within which the
organization operates. This includes population trends such as the population

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 Learning Module for Principles of Marketing

growth rate, age distribution, income distribution, career attitudes, safety

emphasis, health consciousness, lifestyle attitudes and cultural barriers.
4. Technological Factors:
These factors pertain to innovations in technology that may affect the operations
of the industry and the market favorably or unfavorably. This refers to
technology incentives, the level of innovation, automation, research and
development (R&D) activity, technological change and the amount of
technological awareness that a market possesses.
5. Environmental Factors:
Environmental factors have come to the forefront only relatively recently. They
have become important due to the increasing scarcity of raw materials, pollution
targets and carbon footprint targets set by governments. These factors include
ecological and environmental aspects such as weather, climate, environmental
offsets and climate change which may especially affect industries such as
tourism, farming, agriculture and insurance.
6. Legal Factors:
Although these factors may have some overlap with the political factors, they
include more specific laws such as discrimination laws, antitrust laws,
employment laws, consumer protection laws, copyright and patent laws, and
health and safety laws.

Source: Administrator. (2018, July 10). PESTEL Analysis (PEST Analysis) EXPLAINED with EXAMPLES:
B2U. Retrieved June 28, 2020, from https://www.business-to-you.com/scanning-the-environment-
pestel-analysis/

ACTIVITIES

Directions: Write your answers for Independent Activity 1 & 2 in yellow pad.
1. Activity

Identification. Identify the difference between Micro-Environment and Macro-Environment.

Use this format.

Basis for Microenvironment Macroenvironment

Comparison
Meaning

Elements
Nature of elements

Are these factors

controllable?

Influence

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 Learning Module for Principles of Marketing

2. Activity 2: SWOT ANALYSIS

Group Activity: Pick 3-5 members from your class. Cite business establishment in your
area that is very familiar to you or among groupmates then by using format below. Write
the SWOT Analysis of that business and answer the guided questions below. You can
use online group chats, messenger and other social media platforms for group
discussion.
Business Name:

Strengths Weaknesses Opportunities Threats

Guided Questions:
a. How does the business establishment in your area can use its strengths to improve
its weaknesses? Explain.
b. How does the business establishment or firm in your area can transform its threats
into opportunities? Explain.
c. Do you think SWOT analysis can improve the business’s performance or satisfaction
of their customers? How? Explain.

REMEMBER

A company’s marketing environment consists of the actors and forces outside of

marketing that affect marketing management ability to build and maintain
successful relationships with target customers. Every niche has different players
fighting for the same spot. A better understanding of the marketing environment
allows the marketer to understand more about the competitions and about what
advantages do the competitors have over his business and vice versa.

Macro and Microenvironment may directly and indirectly impact the organization’s
marketing plan. These factors can be a great opportunity for the company to
develop and improve product or services, pricing, customer satisfaction, employees,
promotions, advertising and other segment of marketing plan.

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 Learning Module for Principles of Marketing
CHECK YOUR UNDERSTANDING

MODIFIED TRUE OR FALSE:

Directions: Write Correct if the statement regarding Strategic and Marketing
Planning is true but if it is incorrect write the correct word/s to make the statement
correct.

1. SWOT Analysis. These variables, consider both economic and

non-economic factors like social concerns, government policies, family structure,
population size, inflation, GDP aspects, income distribution, ethnic mix, political
stability, taxes, and duties, etc.
2. Legal factors represent the demographic characteristics,
norms, customs and values of the population within which the organization
operates. This includes population trends such as the population growth rate, age
distribution, income distribution, career attitudes, safety emphasis, health
consciousness, lifestyle attitudes and cultural barriers.
3. Marketing intermediaries may include wholesalers,
distributors, and retailers that make a link between the firm and the customers.
4. The strengths and weaknesses in the SWOT analysis do not
list all features of a company, but only those relating to critical success factors.
The general environment within the economy that influences the working,
performance, decision making and strategy of all business groups at the same time
is known as Macro Environment. It is dynamic in nature.
5. PESTLE analysis (formerly known as PEST analysis) is a
framework or tool used to analyses and monitor the macro-environmental factors
that may have a profound impact on an organization’s performance.

POST-TEST
MULTIPLE CHOICE.
Directions: Read each question carefully and choose the letter of the best answer. Write
your answer in the space provided before the number.
1. Refers to the environment which is in direct contact with the business
organization and can affect the routine activities of business straight away.
a. PESTLE Analysis
b. Macroenvironment
c. SWOT Analysis
d. None of the Above
2. Distils these data to show the critical items from the internal and
external audit. The number of items is small for forceful communications, and
they show where a business should focus its attention.
a. Macroenvironment
b. Microenvironment
c. PESTLE Analysis
d. SWOT Analysis

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 Learning Module for Principles of Marketing

3. Refers to the general environment, that can affect the working of all
business enterprises.
a. PESTLE Analysis
b. Macroenvironment
c. SWOT Analysis
d. Microenvironment
4. These factors are all about how and to what degree a government
intervenes in the economy or a certain industry.
a. PESTLE Analysis
b. Political Factors
c. SWOT Analysis
d. Microenvironment
5. This dimension of the general environment represents the demographic
characteristics, norms, customs and values of the population within which the
organization operates.

a. PESTLE Analysis
b. Macroenvironment
c. SWOT Analysis
d. None of above

REFLECTIVE LEARNING SHEET

Reflective Activity.
Directions: Cite business in your area and determine the Macroenvironment factors
using PESTLE Analysis below. Then answer the reflective questions.

Business Name:
Macroenvironment Write macroenvironment factors in each criterion.
Factors
POLITICAL

ECONOMIC

SOCIAL

TECHNOLOGICAL

LEGAL

ENVIRONMENT

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 Learning Module for Principles of Marketing

Reflective Questions:
1. In each macro environment factors, which one among the factors you listed
have massive impact the business? Why?
2. Which of the following factors above include our current situation (COVID19-
Pandemic)? Why?

E-SITES

To further explore the concept learned today and if it possible to connect the
internet, you may visit the following links:

Topic: Micro-Environment Topic: Macro-Environment

https://www.youtube.com/watch?v=d1QUX2AFjz0 https://www.youtube.com/watch?v=y9RDg_JMmPc

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 Learning Module for Principles of Marketing
REFERENCES

Administrator. (2018, July 10). PESTEL Analysis (PEST Analysis) Explained

with Examples: B2U. Retrieved June 28,
2020, from
https://www.business-to-you.com/scanning-the-environment-
pestel-analysis/
Armstrong, Gary (2013). Marketing: An introduction 11th, Global ed. Harlow,
England: Pearson
Attar, Asiyeh, (2019) CONTEMPORARY TYPES OF MARKETING, Retrieved from
https://blog.ubrik.com/types-of-marketing

Garrovillas, Eduardo P ( 2007), Out of the Box Marketing Principles, that work
and make sense. Books Atbp. Publishing Corp

Go, Josiah (1996). Contemporary Marketing Strategy in the Philippine Setting,

Manila: National Bookstore

MEDINA, ROBERTO G. (2008), Principles of marketing revised edition REX

Bookstore.

Microsoft Dynamics 365, (2015, July 16). RELATIONSHIP Marketing Strategies

and tools Retrieved
from https://www.powerobjects.com/blog/2015/07/16/9-relationship-
marketing-strategies-and-tools/

Mind Tools, T. (n.d.). SWOT Analysis: – How to Develop a Strategy For Success.
Retrieved June 28, 2020, from
https://www.mindtools.com/pages/article/newTMC_05.htm

Smith, Kimberly (2009) Case Study: How a Facebook Game Attracted 10 Times
the Traffic, New Fans, Real Sales Retrieved
from http://www.marketingprofs.com/casestudy/2009/9366/how-a-
facebook-game-attracted-10-times-the-traffic-new-fans-real-sales

Surbhi, S. (2020, February 03). Difference Between Micro and Macro

Environment (with Comparison Chart). Retrieved June 28, 2020, from
https://keydifferences.com/difference-between-micro-internal-and-
macro-external-environment.html
The Laire Group Team, (2018) Marketing Plan versus Marketing Strategy
Retrieved from https://www.lairegroup.com/blog/marketing-plan-vs-
marketing-strategy

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 Learning Module for Principles of Marketing
2012books.lardbucket.org, (2012) The Marketing Environment Retrieved from
https://2012books.lardbucket.org/books/an-introduction-to-business-
v2.0/s13-08-the-marketing-environment.html
Williamson, Will (2020), Traditional Vs Contemporary Marketing Strategies,
Retrieved from https://blog.jdrgroup.co.uk/digital-prosperity-
blog/traditional-vs-contemporary-marketing-strategies

Acknowledgements
Development Team of the Module

Writers: Jupiter Q. Whiteside, MBA

Mark Vincent B. Emit, PhD

Editor: Isabel A. Gumaru, DBA

Evaluators: Manuel L. Hermosa, EdD

Ellaine Dela Cruz, DBA

Validators & Reviewers:

Remylinda T. Soriano, EPS, Math
Angelita Z. Modesto, PSDS
George B. Borromeo, PSDS

Management Team:
Maria Magdalena M. Lim, CESO V, Schools
Division Superintendent-Manila
Aida H. Rondilla, Chief Education Supervisor
Lucky S. Carpio, EPS
Lady Hannah C. Gillo, Librarian II-LRMS

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 Learning Module for Principles of Marketing

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