THE MARKETING ENVIRONMENT

MACRO/MICRO/GLOBAL

CHANGE IS THE ONLY CONSTANT

THE MARKETING ENVIRONMENT IS CONSTANTLY PROVIDING NEW CHALLANGES AND OPPORTUNITUIES THE MARKETERS MUST UNDERSTAND THE CHANGES AND THEIR LIKELY IMPACT ON THE SOCIETY THEY MUST THEREFORE ALWAYS RE-INVENT THEIR BRANDS/INTRODUCE NEW PRODUCTS TO MEET THE NEEDS OF CHANGING ENVIRONMENT

TRENDS

THE COS MUST IDENTIFY THE EMERGING TRENDS -FADS -TRENDS -MEGA TRENDS SOME EMERGING GLOBAL FORCES -INFORMATION FLOW -RISE OF ASIAN COUNTRIES -OFFSHORING -GLOBAL WARMING -RISE OF FUNDAMENTALISM -TERRORISM -NUCLEAR PROFILERATION

MAJOR MACROENVIRONMENTAL FORCES DEMOGRAPHIC

CHANGES IN POPULATION AGE LOCATION POPULATION INCREASE HAS TWO MAJOR IMPLICATION

INCREASED DEMAND FOR FOR FOOD CLOTHING SHELTER

DEMAND RISES IN REGIONS WHICH ARE ALREADY UNDER STRAIN

DEMOGRAPHIC FACTORS

AGE
-PRE SCHOOL -SCHOOL GOING -TEENS -YOUNG ADULTS (25-40) -MIDDLE AGED ADULTS(40-65) -OLDER ADULTS +65

ETHINICITY
JOINT FAMILY

FAMILY STRUCTURE
NUCLEAR

IMPLICATIONS FOR WORKING WOMEN

ECONOMIC FACTORS

THE PURCHASING POWER OF PEOPLE DEPENDS ON SEVERAL FACTORS CURRENT INCOME/PRICES/INFLATION/SAVINGS COST OF LIVING/INTEREST RATES ETC DEPENDING ON INCOME DISTRIBUTION THE ECONOMIES CAN BE CLASSIFIED AS:BASIC/SUBSISTENCE ECONOMIES RAW MATERIAL EXPORTING COUNTRIES INDUSTRALISING ECONOMIES INDUSTRIAL ECONOMIES

NATURAL ENVIRONMENT

ENVIRONMENT UNDER THREAT MAJOR CONCERN FOR DEPLETING RESOURCES GLOBAL WARMING OZONE LAYER DEPLETION

GREEN MARKETING
THE TRENDS IN NATURAL ENVIRONMENT MAY LEAD TO i) RAW MATERIAL SHORTAGE ii) RISING ENERGY COSTS iii) HIGHER POLLUTION LEVELS iv) STATE INTERVENTION

RAW MATERIAL ARE BASICALLY OF TWO TYPES

FINITE

RENEWABLE

INCREASED ENERGY COSTS

-DEPLETING FINITE ENERGY SOURCES ADD TO THE ENERGY COSTS -THEREFORE EMPHASIS ON NON CONVENTIONAL ENERGY

INCREASED POLLUTION LEVELS STATE INTERVENTIONS

TECHNOLOGICAL ENVIRONMENT

GROWTH OF AN ECONOMY IS DIRECTLY PROPORTIONAL TO THE TECHNOLOGICAL PROGRESS IT MAKES MAJOR INNOVATUIONS, HOWEVER,DO NOT OCCUR UNIFORMLY OVER A PERIOD OF TIME HENCE,A PERIOD OF STAGNATION TENDS TO SET IN THIS GAP TENDS TO BE FILLED THRU MINOR INNOVATIONS THE COS MUST THEREFORE MONITOR THE FOLLOWING CHANGES --ACCELLERATING PACE OF TECHNOLOGICAL CHANGE

INNOVATIONS-SKY IS THE LIMIT-INNOVATIONS ARE RADICALLY CHANGING THE TRADITIONANAL TECHNOLOGIES AND PROCESSES ROBOTONICS/STEM RESEARCH/GENETIC ENGINEERING

ROLE OF RESEARCH &DEVELOPMENT COS HAVE TENDED TO LARGELY PAY LIP SERVICE TO R&D AND DO TOKEN RESEARCH. A VERY BASIC ATTITUDENAL SHIFT IS REQD IS REQD TO REALISE THATR&D IS THE VERY BASIS OF SURVIVAL ROLE OF STATE THE GOVTS HAVE TO ENSURE THAT POTENTIALLY HAZARDOUS PRODUCTS DO NOT ENTER THE MARKET AND COS MUST ENSURE CONSUMER SAFETY.

POLITICAL ENVIRONMENT

WHAT IS THE NATURE OF PLITICAL CLIMATE OF THE SOCIETY? ECONOMIC LEANING OF THE GOVT OF THE DAY THE ATTITUDE OF THE GOVT MAY BE BENEFICIAL TO SOME COS WHILE IT MAY BE ADVERSIAL TO OTHER COS. MARKETERS ARE LIKELY TO BE AFECTED BY --GOVTS FISCAL & MONETARY POLICIES --GOVTS RELATION WITH INDIVIDUAL INDUSTRIES IE SUBSIDIES FOR FERTILISERS ETC

SOCIO-CULTURAL ENVIRONMENT

OUR BELIEFS, VALUES AND NORMS ARE SHAPED BY SOCIETY. THE PERCEPTIONS DEVELOPED BY THE PEOPLE SHAPE THEIR sPURCHASE BEHAVIOUR THE MAJOR PERCEPTIONS ARE i) PEOPLES PERCEPTION OF THEMSELVES PEOPLES PERCEPTION ABOUT THEMSELVES LEADS TO A PARTICULAR LIFESTYLE ii)PEOPLES VIEW OF OTHERS iii) PEOPLES VIEW OF ORGANISATION

HIGH PERSISTENCE OF CORE VALUES EACH SOCIETY HAS CORE BELIEFS SHAPED BY PARENTS,FAMILY,SCHOOL,RELIGIOUS LEADERS THESE ARE FIXED, RELATIVELY UNCHANGEBLE EXISTENCE OF A SUB CULTURE SUB CULTURE DEVELOPS AS A RESULT OF SHARED EXPERIENCE OR SPECIAL CIRCUMSTANCES SHIFT IN CULTURAL OVER A SPAN OF TIME