Analyse key micro and macro environmental

forces that may impact our target markets

behaviour.
The marketing environment is a broad sector that marketers must
evaluate so that they can create, communicate, deliver and
exchange offerings of value for its stakeholders (Elliott, RundleThiele, Waller 2014). Understanding the environment enhances a
marketers ability to understand the market so that they can create
the best marketing mix to satisfy its particular target market. By
subdividing the marketing environment into the micro environment
and the macro environment, we can better understand the forces
that may impact the target markets behaviour towards Staminades
new product- **Promade/Prominade new product name**.
Staminades target market for this product is people who are
enjoyment driven in their lifestyle choices and are aged from 18-25
years old in Australia.
The micro environment is an environment such that it cannot be
directly controlled by Staminade, as its key forces that impact target
market behaviour consists of customers and competitors. Customers
play a core role in influencing the target markets behaviour.
Customers are the target market for Staminade, and without
customers, the target market wouldnt exist, as they determine how
marketers understand the current and future needs and wants of
their target market. In order to respond to the influence of
customers on target market behaviour, marketers must understand
what their target market values, and be willing and able to adapt to
changes in customer preferences. This assists marketers to create a
more consumer-oriented beverage such as, ready to drink bottles
and post-workout sports drink that are enhanced with protein. This
will ultimately lead to increase sales for Staminade as customers
continue buying this product- just because marketers understood
and adapted to customer preferences.
Staminades competitors are another influential force within the
micro environment that can very heavily impact upon Staminades
target market. Staminades major competitors within the
geographical location they produce in (Australia) are Powerade and
Gatorade. Currently, both Powerade and Gatorade do not contain
any protein in their sports drinks and thus the addition of protein will
differentiate Staminades products from its competitors. However,
Van Essen and Gibala show in their experiment on trained cyclists,
that the addition of protein in sports drinks did not further enhance
performance during a time trial task that closely simulated athletic
competition (2006, pg. 1483). This proves that the effect of protein
during exercise or physical activity is unnecessary, and that further

research must be conducted to determine when the drink should be

consumed, as research on this topic is limited.
Macro environmental forces encompass the factors outside the
industry that influence the organisations survival. The main macro
forces that impact Staminades target market are economic,
sociocultural and technological factors.
The prominent economic components that impact target market
behaviour are income and economic conditions. The average
income and level of savings and debt of people aged from 18-25 will
greatly affect the total consumption of this product. As this age
bracket mostly includes people who have either started further
education or recently began work, the income and savings level will
be relatively low in comparison to an age above 30. According to
Australian Government- Office for Youth statistics, the average
annual disposable income for workers aged 15-24 is $27,499 (2009,
pg. 49). Staminade marketers must consider this and use pricing
that is affordable for their target market especially if consumption of
this product will be a frequent event. Economic conditions are a
vital aspect that will impact the target markets level of
consumption. For example, if the economy is in a recession, when
cost of living increases as prices increase, consumer consumption
will be reduced, causing Staminades target market to consume
less. Vice versa for a boom situation in the economy.
Sociocultural factors showcase the greatest macro influence on
target market behaviour. Recently, there has been an increase in the
fitness culture of Australia as the participation in aerobics, fitness or
gym activities has increased from 13% in 2005-06 to 14% in 200910. For example, participation rates activities such as running have
increased by 2% between 2005 and 2010. Within Staminades target
market, high rates of aerobics, fitness and gym activities are
recorded within people aged 15 to 24 years (ABS, 2011)
demonstrating a greater potential for this product towards appealing
to its customers. Furthermore, Marcus and Fremeth (2009, pg.17)
emphasise the importance of green management because people
expect businesses to use resources wisely and protect the
environment. Staminade must aim to reduce the harmful effects on
the natural environment by taking approaches that reduce waste
and prevent damage during production. This will satisfy societys
growing demand for a sustainable environment and will promote a
better environment for Staminade to produce in.
Finally, technological forces immensely impact upon Staminades
target market for this product. Forms of advertising such as TV
advertising and social media create a larger and innovative path for
Staminade to persuade their target market to purchase this product.
This is observed and by Write et al. (2010) as they promote the use
of innovative leaders within social media in order to create value for

customers. In particular, with a large fraction of 18-25 year olds

having social media, the use of social media advertising can rapidly
impact target market behaviour, especially through innovative ways
to connect such as hashtags and shares on social media. These
ideas via social media are a more convenient way for target markets
to know Staminade and hence respond to its new product.

Reference List:
Alfred, A. M., & Adam, R. F. 2009, Green management matters
regardless, The Academy of Management Perspectives, 23(3), 1726.
Australian Bureau of Statistics 2011, Physical Recreation,
Perspectives on Sport, viewed 3 May 2015,
<http://www.abs.gov.au/ausstats/abs@.nsf/Products/4156.0.55.001
~Nov+2011~Main+Features~Physical+Recreation?
OpenDocument>.
Elliott, Greg & Waller, David, (author.) & Rundle-Thiele, Sharyn,
(author.) 2014, Marketing, Third edition, Milton, Qld John Wiley and
Sons Australia.
Muir, K., Mullan, K., Powell, A., Flaxman, S., Thompson, D., Griffiths,
M. 2009, State of Australias Young People: A Report on the social,
economic, health and family lives of young people, University of
New South Wales, viewed 4 May 2015,
<https://www.sprc.unsw.edu.au/media/SPRCFile/41_Report_YoungPeo
pleReport.pdf>
Van Essen, M., & Gibala, M. J. 2006, Failure of protein to improve
time trial performance when added to a sports drink, Medicine and
Science in Sports and Exercise, 38(8), 1476.
Wright, E., Khanfar, N. M., Harrington, C., & Kizer, L. E. 2010, The
lasting effects of social media trends on advertising, Journal of
Business & Economics Research (JBER), 8(11).