Introduction

The purpose of this essay is to analyse the macro environment of the new washing machine which is being developed for launch in 2008 by Smart Wash Company. An organization's marketing environment can be defined as: the actors and forces external to the marketing management function of the firm that impinge on the marketing management's ability to develop and maintain successful transactions with its customers (Kotler, 1997). Virtually all introductory textbooks in marketing reserve a section for an analysis of the macro environment (McCarthy, 1996). Thus, we aim to analyse the relevant macro environment for Smart Wash Company, so that we plan our marketing strategy and target the market in 2008.

External environment

The macro environment is generally categorized into demographic, political/legal, economic, cultural, technological and natural environments. The basic tenet is that what happens in the broader environment has significant implications for organizational functions (Mavondo, 1999). For example, McKee et al. (1989) found environmental turbulence to have a significant impact on marketing variables. The macro environment introduces a degree of homogeneity in a given industry through similarities in regulatory pressures, strategic alliances, human capital transfers, social and professional relationships and competency blueprints (Oliver, 1997). Environmental variation has been shown to impact on strategy (Hrebiniak & Joyce, 1985) and to affect organizational structure (Miles & Snow, 1978). 1. Demographic Environment 1.1 Population Status - The Australian population grew by 1.5% during the 12 months ended 30 June 2007. Natural increase and net overseas migration contributed 44% and 56% respectively to this total population growth. The increase in the population contributed by the flow of overseas