Macro aspects of Marketing
Macro Marketing
Macro Marketing focuses on the broader economic and societal aspects of marketing. It examines how marketing influences the overall economy, industries, and consumer behaviour on a large scale.
Not for nothing is marketing considered by many authorities of business management as one of the most important subjects in business. There is a need to broadly divide marketing into macro and micro divisions. In this blog we discuss the macro-overview. Blog No11 will concentrate Micro Marketing
First, let me answer the question: Where are we?...... in this series of marketing. Blog No 8 Part One: this was my introduction to marketing
Blog No 9 “A Sense of Urgency” by John Kotter…...it was a lesson for Marketing
Blog No 10 Part Two: Macro aspects of Marketing
Blog No 11 Part thee: Micro aspects of Marketing
My target market for this series of blogs are for people in business or interested in Business Management. They could be individuals as sole traders, startups, SMEs (Small and Medium Enterprises) family businesses to large corporations and multinational companies.
Businesses are going to achieve Job Creation……...the beginning of tackling poverty and growing our economy. All businesses need to be a learning and teaching organisation if they are going to sustain being thriving and profitable entities. This is Particularly important now where there is a great deal of ignorance about business.
I will in this series cover all areas that make up the value chain of a business. Six core subjects are taken from Michael Porter’s value chain.1) Marketing, 2) financial management 3) strategy and structure, 4) operations, 5) technology 6) human resources.
World Developments influencing Macro Marketing
The market does change and our management authorities, led by Peter Drucker impressed on practising managers, they should be aware of World developments. E.g. Chat GPT in IT – What impact will this have on marketing in the future?
Then Climate Change, the Green and Circular……... the green economy should include the infrastructural restoration from storm and fire damage, it is reactive. Restoration must also be proactive ……doing something before the devastation from storms, hurricanes, fires and flooding……including the rise in the sea level.
It all makes one think. What do we need in the future? Who is going to make it happen? Business…….where there is a need business will deliver……business will also fix what is broken. .
We have started off on a strategic planning footing in this blog on Macro Marketing…… let me mention the three simple questions in strategic planning.
· Where are we?
· Where are going?
· How do we get there?
These three questions are relevant in marketing. How often should a leader of any organisation ask themselves these questions? The SWOT analysis of strategic planning is also useful. The OT (OPPORTUNITIES and THREATS) Assists marketing in assessing the environment marketing is likely to operate in. Both the weather climate environment, also the socio-economic and political.
The OT can also apply to the micro side…...opportunities that businesses may be able to pursue because of a variety of reasons, namely, capital both hard cash and intellectual capital (dynamic management expertise)……..this to investment in new developments.
Marketing stimulates imagination and must embrace thinking big. What of the capital needed for these massive developments ?. Let me say it again we need to grow the economy 6 to 8 % annual compound growth of GDP for at least 15 Years.
Only business can do this with the help of a committed government and a civil society…… that doesn’t accept….. just muddling along. SA needs to use the resources it has.
Once we start growing like this, we have seen first how the US grew and developed and closer to us Germany and Japan …….followed by many, South Korea, Ireland, Singapore, Costa Rica, Estonia (written about by Temba A Nolutshungu) and more even Ukraine, China and India.
On Germany rising like phoenix after the second world war…...we thought it all happened because of the Marshall plan, massive investments from the US, Wrong.
After the war West Germany followed a free-market economy …... in a constitutional democracy with all the rights for all individuals……the rule of law, bill of rights, freedom of expression and association, separation of powers, the legislative, executive and judiciary. I might also add a federal system of government.
Two gentlemen are mentioned as leading this direction Konrad Adenauer and Ludwig Erhard, they also advocated European integration, later the creation of the European Union. Family businesses led by hardworking and enterprising individuals…...they became a strong force in Germany. Many businesses led Germany to become one of the leading export countries in the world. Yes, the businesses needed capital, supplied by the Marshal Plan and by supportive German Banks.
The Industries the Market covers
The market consists of industries and economies a broad list of core industries is as follows
Major Industries in the World ranked by size
Here's a list of the major industries in the world, starting with the biggest:
Technology: This includes software development, hardware manufacturing, telecommunications, and internet services.
Healthcare: This encompasses pharmaceuticals, medical equipment, hospitals, and healthcare services.
Finance: This includes banking, insurance, investment, and real estate.
Manufacturing: This involves the production of goods, from automobiles to consumer electronics.
Energy: This includes oil and gas exploration and production, renewable energy, and power generation.
Retail: This involves the sale of goods and services directly to consumers.
Transportation: This includes airlines, shipping companies, and logistics including online.
Agriculture: This involves the cultivation of crops and the raising of livestock.
Construction: This involves the building of infrastructure, such as roads, bridges, and buildings.
Tourism: This involves the provision of services to visitors, such as hotels, restaurants, and attractions.
Note: These are broad categories, and each industry can be further divided into smaller segments. For example, the technology industry, Google Gemini gives 26 segments under 7 headings. A growing number of segments and opportunities for Job creation.
New Industries and their segments open opportunities for Marketing
In marketing businesses need to be aware of developments in these major industries and their segments, some industries are moving faster than others because of the advances in technology. Notably in technology and healthcare. Further research can be done into the growth of segments, Google Gemini was my source. Marketing is assisted by developments in digital and social media. Much of this technology in used in micro marketing.
Top Economies by Employment: ranking major economies by the numbers employed on average worldwide
Agriculture: This remains one of the largest employers worldwide, especially in developing countries. It includes farming, livestock, and related activities.
Manufacturing: The production of goods, from automobiles to electronics, is a significant source of employment in many countries.
Services: This broad category encompasses a wide range of industries, including retail, healthcare, education, hospitality, and finance.
Construction: Building infrastructure like roads, bridges, and buildings provides employment opportunities in many regions.
Government: Public sector jobs in administration, education, healthcare, and defence are a major source of employment.
Wholesale and Retail Trade: The distribution and sale of goods to businesses and consumers is a significant employer.
Transportation and Logistics: The movement of people and goods, including trucking, shipping, and aviation, is a major industry.
Information and Communications Technology (ICT): The development, production, and distribution of technology products and services is a rapidly growing sector.
Other Notable Economies
Healthcare: While included in services, healthcare deserves a separate mention due to its increasing importance.
Education: Another essential service sector that provides employment opportunities in various roles.
Tourism: The hospitality and travel industry can be a major employer in regions with natural attractions or cultural significance.
Energy: The exploration, production, and distribution of energy sources (oil, gas, renewables) can be a significant employer.
Note: The specific ranking of these economies can vary depending on the country or region. For instance, in developed countries, the service sector might be the largest employer, while in developing countries, agriculture and manufacturing might be more prominent.—/
We could add to this list Sport including all the segments that contribute to job creation and the economy.
Economic Impact
Job Creation: Sport in general as an industry creates jobs in various sectors, including coaching, administration, media, and hospitality.
Tourism: International matches and tournaments can attract tourists, boosting local economies.
Social Cohesion: The Paris Olympic games is an example of a role played in promoting social cohesion and unity in the world.
Women entering sports previously confined to men: this is a growth sector attracting growing number of spectators.
Education Skills training and Employment
The lack of skilled persons with a broader education is a block to achieving that 6 to 8% percentage compound GDP growth for the economy. Skilled and trainable people will be needed when the boom in the economy takes off.
In overcoming this shortage, important that strategic planners in education and skills development know what industries and segments are growing and what skills will be needed and what subjects should be taught. Leavers also need to be prepared for continuous learning and be able to become excited about their future careers.
“Striving for Excellence – Going Back to Basics”
“The Excellence Dividend” is my reference from Tom Peters’ latest book. The book is regarded as a sequel to his 1982 book “In Search of Excellence” that he co-authored with Robert Waterman. The book that shot the lights out of the business world, it was so successful.
What are these basics in excellence? Let me summarise a few:
· Excellence is seemingly small acts that shout “We care” and which linger in the memories of those we interact with – our own people, our communities, and our suppliers, putting people first – Ubuntu.
· Excellence is a culture; it is reflected in the persons attitude towards the coming day, excellence that translates into an emotional bond with customers and communities. It cannot be replaced by algorithms. Excellence is a human-driven affair, a state of mind, not a computer-generated exercise. Excellence is sustained by a culture of excellence.
· Excellence in management is a grand human achievement. More about this in the series.
· “We are who we hang out with”. Instinctively we might know this. Peters devotes a chapter to this. The point he makes is that diversity is enriching to society, should be celebrated; it precedes excellence. This diversity is from the top down, a board of directors → managers → shop floor to quote from Peters’ book: He from a book written by Scott Page “The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools and Societies.”
· A passion for design – a differentiation or the power of design. Steve Jobs might have put the power of design on the map. It is a principle now. I like the quote “People behave in a peaceful harmonious way when their surroundings and equipment are aesthetically and beautifully designed”. That’s an incentive to achieve living areas that make a statement about quality and design. Design is ………
Design = Care
Design = Elegance
Design = The best of human achievement
Design = Contribution to human culture
Design = Respect
Design = Thoughtfulness
Design= Avoiding insult
What a statement design makes. And what an indictment on society when we don’t care what something looks like, what state it is in. Not for nothing is design eye-catching!
Excellence certainly has a place in macro marketing of achieving businesses and other organisations.
Summary and conclusion
Philosophical content in marketing e.g. The concern and care for other’s needs, empathy……. should be a feature of our lives. Living outside oneself, becoming an achiever and not a taker……. in a world full of opportunities.