Macroenvironment

Macro environment Analysis

The marketing environment has uncontrollable variables that directly affect every business’s operation and working condition. It is important to understand the nature of those variables, identify, and analyze them when making marketing decision that can be controlled. Here, we will go through the main macro environment forces of economic, technological, political/legal, social and cultural that may directly affect our marketing plan.

Economic Environment

The economic environment obtains rapid changing macro-economic factors such as national income, economic growth, and inflation that directly affects the consumer buying behavior. The effects may require changes in our marketing strategy.

Although we have noticed a slight economic changes from the last year where the average national income is $53,657, personal income increased by 0.3%, compensation increased by 4.5%, and GDP increased by 0.7% in Q4 of 2015, real consumption only creased 0.4% in November 2015 when it was flat in October. The U.S Consumption accounts for roughly more than 70% of the nation’s overall economic growth, but it appears that Americans are not spending their cash. Although with the increase in wages from 2015 and decrease in gas prices, it is not enough to motivate Americans to increase their desire to spend. Upon further analysis of what other factors are causing the decrease in consumption today are the increase of the inflation rate of 0.9% as of March 2016, the stock volatility (consumers expect volatility to continue over the next few months of 2016), uncertainty of the 2016 election, and global oil prices. Overall, 26% Americans consider the economy to be “in good shape,” 29% say “poor,” and 60% say “economic conditions are getting worse.” From these economic factors poses a challenge where although there is a need to solve snoring and the sleeplessness in America, consumers may not initially drive a high demand for it. However, we believe we...