In addition to the other factors affecting

company & industry , this also affects factors

in the micro environment too.

 Demographic Environment
Economic Environment Physical Environment Technological Environment Political Environment

Legal Environment
Social & Cultural Environment.

 Demographic variables include :

1. Income 2. Life-style 3. Sex 4. Education 5. Social class 6. Occupation 7. Age

Demographic Environment
Study of population characteristics in terms of size,density,location,age,sex,race,occupation etc that are used to describe consumers. Helps to analyse who are the current & potential customers,where are they,how many are likely to buy and what the market is selling

AGE
Infants School going teens Young adults Adults (35-45) Senior citizens

Women

Economic Environment
General Economic conditions: 1. Agricultural trends 2. Industrial output trends 3. Per captia income trends 4. Pattern of income distribution 5. Price levels 6. Employment trends 7. Impact of Government policy

 Industrial Conditions :
1. Market growth 2. Demand patterns 3. Stage in the product life cycle Supply sources of production :

1. Land 2. Labour

3. Capital
4. Machinery & equipment etc

Physical Environment
Also called as natural environment Shortages of raw materials,increased pollution,increased governmental in natural resources. Green movement

Technological Environment
Technological advancement,product changes. Pencillin,open heart surgery,birth control pill CAD,CAM Hi-tech innovations

Political Environment
Management of public affairs. Certain restrictions

Legal Environment
Competition, Price-setting, distribution arrangement, advertising etc. Indian Contract Act ,1872

Factories Act,1948
MRTP Act,1969 The Companies Act,1956

Social & Cultural Environment.

Attitudes, beliefs,norms,values,lifestyle