Course Name :

Marketing Management
Prepared By:
 Shama Urooj I202122067
 Muhammad Kashif 尹宽 I202122039

Major: Business Administration

School: School of Management (SoM)

Country: Pakistan
 Macro environmental factors in your
country that impact marketing of firms
The Impact Of Macro Environment
Factors on Marketing
 The macro-environment refers to the external environment of
any business in which it exists. These environmental factors are
beyond the control of marketers but they still influence the
decisions made when creating a strategic marketing plan.

 This environment is enormous and unpredictable and thus

uncontrollable by the firm. That is why the success of any firm
generally depends on its ability to adjust and respond to the
changes in the Macro Environment.

 The macro-environment refers to the environment that affecting

how all business groups perform, operate and make decisions.

 It is quite dynamic and have need of every firm to track its

changes constantly.
 How Macro Environment
Factors affect Business
The macro-environment can be classified into following
categories, that affect business environment positively
or negatively.
PESTLE Analysis Tools:
 Demographic Environment

 Political Forces

 Economic environment

 Technological Forces

 Social & Cultural Forces

1. Demographic Environment
Demographic environment refers to studying human population in
terms of size, density, location, age, gender, race and occupation. This
is the very important factor that helps the marketer to divide the
population into different market segments and target markets.
Demographic data also helps in preparing geographical marketing
plans, age and sex wise plans.
The vital variables include:
I. How income variables influence business
II. Age variables that affect business
III. Geographic Region Variables
IV. Education Level as a Variable
o The size of the population
o The ethnic mix and
o Income Distribution
Demographic Environment
 Further, most businesses find the data with respect to these factors
within the targeted demographic variable of interest as it can affect
the growth and success of a business.
 For example, Pakistan has 5th of the world’s population around
2.83% percent. Also, Pakistan has a relatively younger population.
Therefore, many international companies are targeting Pakistan as
a potential market for various products/services.
 Every business can be concerned with different aspects or
demographic characteristics of a population. While for some
businesses, age can be an important factor, for some others it can
be the geographical spread.
 2. Political Forces
 Pakistan is a democratic parliamentary federal republic where the
Prime Minister is the head of government and the President is the
ceremonial head of state. The influential role of the Pakistani military
establishment in the country’s politics has been questioned by many
political analysts.
 The political factors affecting business are often given a lot of
importance. Several aspects of government policy can affect
business. All firms must follow the law. Managers must find how
upcoming legislations can affect their activities.
 Changes in the government policy make up the political factors. The
change can be economic, legal or social. It could also be a mix of
these factors.
Political Forces
 Tax changes-Increase or decrease in taxes could be an example
of a political element. In Pakistan there is frequent changes in direct
and in direct taxes the firms transfer this burden to consumer by
increased in prices due to this factor effect the company’s marketing
strategies.
 Also frequent increase in fuel (Oil and Gas) prices because of IMF
pressure. Currency depreciation is also the vital reason of increased
prices of import raw materials.
 The decision will have a direct effect on your businesses as well as
marketing strategies. Government interventions like shifts in interest
rate can have an effect on the demand patterns of company.
3. Economic environment
 Economic factors include economic growth/decline, interest,
exchange, inflation and wage rates, minimum wage, working hours,
unemployment (local and national), credit availability, and cost of
living. These factors are determinants to an economy’s performance
that directly impacts a company and also marketing strategies

ECONOMICAL FACTORS AFFECTING PAKISTAN

GDP
 According to an estimate, the annual nominal GDP of Pakistan in
2021 was 264 billion US dollars, and it increased by 0.5%. Out of
which, the per capita income of the country was 1321.3 dollars.
Have resonating long term effects.
Economic environment
 Foreign direct investment is very important to the country’s
economy. China remains the biggest investor in Pakistan, It’s
important to know that the increasing domestic consumption level
helps a country to attract foreign investment. Therefore, the
government should promote local spending.
 In Pakistan, during COVID-19 a rise in the inflation rate especially
the food inflation severely affect the way companies’ price their
products and services. Besides, it would also affect the purchasing
power of a consumer and result in a change in demand/supply
models for that economy.
 Economic analysis: The instable economy of the country also
affects the brand position with the country. Some uneconomic
issues like piracy of brand, copyright in the country questioned the
authentication of the brand.it confronts the customers to move on
the other brand which automatically cause the loss of company and
the success rate will decline and company will become nothing.
Economic environment
 Inflation is increase in Pakistan day by day as govt. imposed heavy
duties, levies and taxes on oil and electricity prices which increase
production cost of goods. The companies are have less budget to
promote their products and perform marketing activities that effects
the marketing strategies of businesses.
 as they prefer free of cost or cheap marketing strategies due to
shortage of budget. People Purchasing power are decreases.
 Consumer buying behavior in sugar industry they perform no
marketing activities as they increases their prices but people
buying behavior are not changed they purchased sugar at high
prices and the demand of sugar are not reduced.
Economic environment
 The Government should take up cost studies at the growing sugarcane
stage for the purpose of fixing the support price for the growers. Cost
studies for production of refined sugar both in terms of variable cost
and fixed cost of production in each sugar mill, should also be
undertaken to control the retail prices.
 4. Technological Forces
TECHNOLOGICAL FACTORS AFFECTING PAKISTAN
TECH GROWTH Science and technology have progressed a lot in
recent years. Surprisingly, Pakistan is also one of the world’s nuclear
countries with limited resources to keep up its maintenance. However,
the online shopping trend is increasing in the country. Alibaba, a
Chinese leading e-commerce platform, has recently entered Pakistan.
Its arrival would promote the country’s digital industry. The usage of
smartphones and the internet is increasing.
SOCIAL MEDIA Pakistani people are highly active on social media
platforms like LinkedIn, YouTube, Instagram, Pinterest, Twitter,
Facebook, TikTok, WhatsApp, and others. The limited internet access
in some areas is a major issue for the country to become a digital
economy.
Technological Forces
 The companies are now shifted to change their traditional marketing
strategies to social media marketing that there is cheap and
effective way of marketing now a days as compare to gorilla
marketing.

 Due to COVID-19 the online business has been increased in

Pakistan companies are doing more focus on E-marketing to boost
their business activities.
 5. Social & Cultural Forces
 Family plays a central role in Pakistani society. The country has
the world’s leading domestic market and very well familiar with
western standards.
 It has a plethora of cheap labor supplies. However, the growing
middle class is decreasing the poverty level. Many people view
nepotism as a good thing, and it’s very difficult to pin down an
employment opportunity without references and links.

 SOCIAL CHALLENGES Pakistan is facing some social

challenges like gender discrimination, a lower healthcare system,
poor transportation, unaffordable housing, shortage of quality
food and water, terrorism, extremism, and poor literacy rate.