MAS Airline's Digital Marketing Strategy: Micro and Macro Environment

This report provides a comprehensive analysis of MAS Airline's digital marketing environment, focusing on both micro and macro factors. The micro environment analysis delves into customer demographics, psychographics, and behavioral aspects, highlighting the importance of understanding consumer characteristics for effective marketing. Consumer response mechanisms, such as surveys and phone inquiries, are also discussed as crucial tools for improving product and service quality. The macro environment analysis emphasizes legal and political factors, including government regulations, trade controls, and consumer protection laws, and their impact on MAS Airline's business operations, especially when entering new international markets. Furthermore, the report outlines market penetration strategies, such as price adjustments and increased advertising, that MAS Airline can implement to enhance its market share and revenue generation. The report concludes by emphasizing the importance of considering both micro and macro environmental factors for long-term business sustainability and growth.

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Name
Course
Lecturer
Date of Submission

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DIGITAL MARKETING
MAS AIRLINE
Micro Environment
Customers
Since marketing the MAS airline’s products and services is not an easy job, paying
attention and putting into consideration different customer characteristics is very vital for the
business growth. Therefore, the owners of MAS airline should shape the products and/or service
marketing and promotion strategies in order to meet the needs and wants of the current and
potential consumers. (Ashenden, 2014)
Some of these customer characteristics include:-
a) Demographics- This is one of the market segments which acts as basic building blocks to
the marketing of products and services since they usually refer to the identifiable and
salient characteristics or features of your customers. The management of MAS airline
should consider and focus on different customer traits such as age, race, gender,
profession, ethnicity, education level, income level and also marital status. The managers
of MAS airline by grouping all these different characteristics will assist them in
identifying the specific market segment to focus on. Therefore, demographics are useful
ways or means of categorizing the business’s potential and current customers basing them
on their lifestyle and on other innate characteristics.
b) Psychographics- The marketers of MAS airline should use the psychographic concept
which focuses on identifying consumers based on their interests, personalities, and
values. Brand loyalty is very important to MAS airline and also to any business owners.
It's very crucial because all these elements influence the customer loyalty, which all these
are caused by the businesses competing against the larger and more efficient companies
for the same clients. If the marketers and managers of MAS airline are able in identifying
the characteristics and factors that motivate people in wanting to purchase from their
firm, it means they are in the right path of attracting and retaining both potential and
existing consumers in the long haul. (Bhasin, 2018)
c) Behavioral Analysis- Another factor or characteristic which the marketers of Mas airline
should consider is a behavioral analysis which is closely related to psychographics. From
a marketing perspective this can be used in seeking out the likelihood to develop and
maintain a strong relationship with their potential customers. The MAS airline marketers
and manager should always reason why customers will buy from them and not from their
business rivals or competitors. The attitudes of their existing consumers, and if their
products and/or services are in line with the expectations of the customers. Therefore if
all these questions are answered will assist them in putting the price of their products and
services hence marketing them accordingly. (Bradley, 2018)
Consumer Response

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For the purpose of identifying how consumers do respond to different situations as far as
the quality of products and services is concerned can be achieved by investigating their
behavior. MAS airline can achieve this by the process of choosing between different several
competing products and also evaluating alternatives. Since people purchase depending on
their emotional desires and reasons like gratuities, fear, effortless gain hence turning dreams
into reality, consumer response the feedback either positive or negative an organization gets
from its customers about the products and/or services they sell or their business ethics.
To MAS airline, the consumer response will assist the firm in improving the overall
quality of a product or service offered by the company.
The customer response can benefit the MAS airline company by enhancing or correcting
a product depending on the information gathered, and also benefit the customer by voicing
their opinions about the product in which they compel a company to modify the product.
There are different types of customer responses which MAS airline can use such as
surveys which involves a set of questions concerning a particular product or service, phone
inquiries which include hotline set up by the firm for communication between the company
and its customers and vice versa. Another type of customer response involves sending of a
representative by the organization to public places for the purpose of gathering information
related to its products and services, which is mostly done by asking questions and filling out
questionnaire form of the company. (Link, 2017)
Macro Environment- Legal/Political Factors
MAS airline like any other business is limited by the political environment. The political
forces include government agencies, laws and pressure groups which usually influence and puts
restriction to individuals and organizations in society. This makes the decisions of marketing be
strongly affected and influenced by the developments in the political environment.
The MAS airline should know that the political environment belongs to the least
predictable factors in the environment of business. These political systems vary in different
countries and areas with different political impacts. For instance, within the political
environment cycles developments whereby democratic governments try to be pursuance of re-
election after a specific period. This will usually affect the business of MAS airline. Another
political force which is a barrier to economic growth and development in many countries is
corruption, and therefore this can inhibit or slow the growth of MAS airline business. This are
some political factors which may affect the business of MAS airline company: tariffs,
bureaucracy, corruption level, anti-trust law, trade control, employment laws, discrimination
laws, environmental laws, data protection laws, education laws, health and safety laws,
regulation and deregulation, competition regulation, tax policy related to tax rates and incentives,
government involvement in trade unions and agreements, government stability and related
changes, import restrictions on quantity and quality of products, intellectual property laws which
involves copyrights and patents, environmental pollution regulation laws, and also consumer
protection and e-commerce. These political factors affect business organization mostly in four

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main ways, which are: changes in regulation, impacts on the economy, political stability and
mitigation of risk.
The two elements; legal and political factors of the macro environment broadly influence
the business world and the factors and operations or business activities of an organization even
including MAS airline. For the MAS airline company entering new markets especially to
international markets or foreign country, it should know everything concerning the legal and
political environment. The MAS airline firm should be aware how the legislation of a particular
company will influence and affect its business activities and operations, which rules does it need
to obey and follow, and also may be which laws will limit the ability of the company to be
successful. For instance, it should understand the laws covering different areas and issues such as
protection of the environment, safety regulations of product, pricing of products and services,
competition, etc. This will help the MAS airline company to know what requirements for the
firm or organization to adapting certain strategies and aspects regarding the new market to
venture in. (Edwards , 2016)
Some set government laws for business to be followed such as “discrimination when
recruiting” may slow or complicate the progress of business activities and operations of MAS
airline organization. For example, for this law being applied will be making process of
recruitment at MAS airline firm far more complicated, since more time and also money will be
used through the process of looking to the most preferable candidate who fits them and the laws
criteria in general. This means the organization can get a hefty fine in case the due course of the
law is not followed.This is because maybe there could be a legal business law which stipulates
that companies must hire or have workers from different backgrounds such as sex, ages, and
religions in order to prevent discrimination.
Consumer laws such as “sales of goods act” can have a big impact on MAS airline since
it may comprise of the legal laws set out by the government and which it must ably. Laws such
as this prevents MAS airline from the selling of products with problems or flaws. This is because
the goods which are being sold should be within the conformity of the description offered, since
they can lead the company from suffering fines, lawsuits and also bad reputation especially if
something goes wrong during the manufacture of the product. This means the MAS airline must
ensure all its products meet the minimum requirements of the specified laws before their dispatch
and release in the market, hence implying a significant amount of money and time will be
required during the products manufacture.
In conclusion, MAS airline firm freedom will be less which may impact its daily business
activities, since is limited by the various laws set by the government while running its business
operations. Therefore the MAS airline firm is surrounded by a complex environment especially
politically. A large range of different forces is involved in the macro environment in which all of
these factors affects and influences the company by either shaping its opportunities or sometimes
they can pose threats. Therefore it is very important and fundamental that the marketers and
managers of MAS airline Company to understand and also have an eye on the development in
the macro environment since this will usually make their business sustainable by growing in the
long term. (Claessens, 2015)

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My opinions are that MAS airline should consider both micro and macro environment
factors, especially customer characteristics and legal and political factors since they are the ones
which mostly will influence and affect their business activities and operations. This does not the
factors are not crucial, but they play also play specific roles which are necessary to be into
consideration by the marketers and managers of MAS airline.
Market Penetration Strategies
For a company entering the new market, it usually strives to penetrate in the market. The
main aim of having MAS airline strategy for market penetration is to launch a product/service
and also enter the market the soonest possible hence gaining a large market share. Market
penetration can be used by MAS airline for the purpose of knowing how its product is doing in
the market, either well or not.
The market penetration technique to be used by MAS airline should not be a must for it
affecting the overall marketing strategy of the organization, but it will bring a compact growth
potential hence increasing its revenue generation. It is highly important for MAS Airline to
implement particular tactics and plans aimed at challenging its competitors and boosting their
sales figures while adopting the concept of market penetration. MAS Airline should also know
market penetration sometimes can be a risky process since it has some disadvantages.
The technique of market penetration will be more useful to MAS Airline especially if it is
selling or offering prevailing products/services in an ongoing market. For the marketers of MAS
Airline must put into consideration market development and expansion grid data which are
relevant on deciding the tactics to adopt during market penetration hence factoring in scenarios
like market saturation, competition intensity or low products turnaround time. This will help
MAS Airline in deciding the best scenario to be adopted while carrying out its market
penetration strategy.
Some of the market penetration tactics which MAS Airline can use are:-
1.) One of the most and widely used market penetration tactic is price adjustment which
MAS Airline can adopt. This strategy involves lowering the product or service price
aiming at increasing its sales. After MAS Airline does analysis of its competitor’s
products/services, it can either increase or decrease the price of their product/service.
This is one of the strategies of price adjustment and it should be done carefully to avoid
customers believing either there is motive of high-profit by the company or it is offering
products that their quality is substandard.
2.) For the purpose of MAS Airline increasing its product placement and brand awareness,
advertising can be a wonderful channel, but drastically increasing the promotion of its
products/services may lead to dramatic results. The MAS Airline has a choice of either
having long-term or short-term campaigns depending on its budget and needs. It must
ensure the strategy is well thought-out and planned, and also it has considered the level of
competition.
3.) The MAS Airline Company should consider using distribution channel strategy which is
one of the most constructive strategy for market penetration. It involves discovering new

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distribution channels while focusing on a specific distribution channel which leads to
increasing market share and overall profitability.
4.) MAS Airline improving the quality of its products/services will be an appeal to its
customers since most customers do not check if a product/service proves itself or not but
just because of its appeal. For instance, having product slight adjustments especially on
its packaging can be more appealing hence increasing the MAS Airline sales revenue.
5.) Increasing usage of the products/services of MAS Airline will lead to better market
penetration hence increasing its sales figures. (Bhasin, 2018)
6.) For MAS Airline entering new brand market segmentation or launching of its new
product/service, it is risky since it can either be successful or not. But for a company
ensuring efficient distribution channels complemented with the smooth delivery process,
it will make it a surety of the product/service meets the expectations. This can be done by
having a proper communication with the customers and also being sensitive to their
wants and requirements.
7.) While MAS Airline is adopting its strategic options, it is important to leverage on its
business strengths properly, like minimizing its variable costs which in turn boosts its
sales and establishes a barrier to entry of others. This can be achieved by having superior
technology and also distinct business processes like substantial market share and efficient
marketing process hence limiting competitors from entering its industry.
8.) In order for MAS Airline to overcome the challenges associated with marketing
penetration is by being highly innovative and more unique in its approaches, like think
differently, modifying its penetration tactics, adding value to its products and services
hence enhancing its success chances. This can be achieved by educating its customers,
making the purchase easier, widening its distribution networks, generating referrals and
change of its product designs.
9.) MAS Airline can diversify product penetration by manufacturing new products aiming
for new markets. The diversification strategy can be embraced whenever there are current
market saturation or environmental changes like economic, technological, societal or
regulatory which makes it hard in generating new sales in its markets.
10.) MAS Airline can enter into strategic alliances with another, like joint venture
business especially if it is facing difficulties in entering and operating in a specific
market. (Educba, 2018)
Some of the advantages of practicing market penetration strategies by MAS Airline are having
swift growth, cost effectiveness and also combating with its competitors while doing business.
Apart from the benefits there are also disadvantages like having unachieved costs of production,
missed chances, bad company image and lack of results.

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References
Ashenden, P., 2014. The 7 characteristics of the customer of 2015. 3(5), pp. 12-14.
Bhasin, H., 2018. 6 Tactics for Market Penetration Strategy. Marketing Basics, 3(5), pp. 12-18.
Bhasin, H., 2018. What is Micro Environment in Business?. Marketing Management, 4(3), pp. 12-17.
Bradley, J., 2018. Customer Characteristics for Marketing. Advertising & Marketing, 4(2), pp. 23-28.
Claessens, M., 2015. The Macro Environment- Six Forces in the Environment of a Business. Marketing-
Insider, 4(9), pp. 23-26.
Educba, 2018. 10 Market Penetration Strategies. [Online]
Available at: https://www.educba.com
[Accessed 25 November 2018].
Edwards , C., 2016. Macro environment- Political/Legal factors. Macro-Environment Impacts on
Converse, 3(7), pp. 45-52.
Link, M., 2017. Define Consumer Response. Bizfluent, 6(4), pp. 5-8.