Several analysis tools can be used in contemporary marketing; some are called micro-level analysis, and others are called macro-level analysis. In this paper, we will discuss each tool's definitions, their differences, and the value associated with applying each to an organization.
Micro-level analysis:
According to (Caruso, Di Battista & Gattone, 2020), the group of forces affects the organization's organization and its operating elements. These elements can be limited to competitors, suppliers, customers, intermediaries, and company members.
Macro-level analysis:
According to (Grovermann, Wossen, Muller & Nichterlein, 2019), it is a group of external forces affecting the work of organizations that operate under the umbrella of a specific environment or a specific border framework. These forces consist of laws, regulations, and norms formulated by individuals, groups, and organizations within these boundaries.
Differences:
There are many differences between the micro and macro levels of analysis in that the microanalysis is in direct contact with the company itself. The macro is not limited to a company but includes all companies operating in the same work environment. In the case of the micro, it affects only a specific business, while in the case of the macro, it affects all business entities. Also, the micro can be easily controlled by making some administrative changes in the company. On the other hand, microeconomics can only be controlled by changing the environment or the factors themselves Mose & Syaifuddin, 2016).
Examples:
Micro-level analysis: It can be analyzed using "Porter's Five fo "Porter'sysis" which analyzes "alternative products, new competitors, competitiveness from opponents, buyers' bargaininbuyers', and suppliers' bargaisuppliers' (Indiatsy, Mucheru, Mandere, Bichanga & Gongera, 2014).
Macro-level analysis: It can be done using PESTLE analysis, which analyzes political, economic, social, technological, legal, and environmental situations (Perera, 2017).
The value associated with performing the two analyses
According to Maqin & Hendri (2017), a study of food industry marketing in Indonesia reported that both analyses helped companies test a mean differential and find better alternative strategies than a single analysis; as both cover the general business environment, they are more complementary and help to determine the business's strengths and weaknesses and potential opportunities and threats. The company should develop appropriate strategies for every opportunity and every threat and create a competitive advantage in the market.
Conclusion
Conducting these analyses is essential to reaching certain convictions among decision-makers. This is due to the possibility of formulating appropriate strategies and issuing sound decisions that are in the interest of companies. Since these analyses do not mention the mechanism of the solution, they only show an accurate picture of the company's internal and external reality.
Preferences:
Caruso, G., Di Battista, T., & Gattone, S. A. (2020). A micro-level analysis of regional economic activity through a PCA approach. In The International Conference on Decision Economics (pp. 227-234). Springer, Cham.
Grovermann, C., Wossen, T., Muller, A., & Nichterlein, K. (2019). Eco-efficiency and agricultural innovation systems in developing countries: Evidence from macro-level analysis. PloS one, 14(4), e0214115.
Indiatsy, C. M., Mucheru, S. M., Mandere, E. N., Bichanga, J. M., & Gongera, E. G. (2014). The application of Porter's five for Porter's on organization performance: A case of Cooperative Bank of Kenya Ltd.
Maqin, R. A. & Hendri, N. (2017). Comparative Analysis: The Effect of Macro and Micro Environment on SMEs' Marketing Strategy and Marketing Performance (Survey on Group of Small Medium Enterprises of Food and Non-Food Products in Cianjur Regency, West Java, Indonesia). International Review of Management and Marketing, 7(5), 70-76. Retieved from https://econjournals.com/index.php/irmm/article/download/5673/pdf.
Mose, A., & Syaifuddin. (2016). Analysis of Macro and Micro-Environment on the Marketing Strategy Formulation and the Influence of the Competitive Advantage (Case Study).Academy of Strategic Management Journal, 15, 35-41. Retrieved from ProQuest Central
Perera, R. (2017). The PESTLE analysis. Nerdynaut. https://books.google.pl/books?id=ZWpLDwAAQBAJ