Factors affecting Marketing Environment
0Lecture 3: Marketing Environment
Scanning of the Marketing Environment – Opportunities or threats?
Environmental Forces—Firms must monitor six major forces in the broad environment:
Demographic
Political-Legal
Economic
Technological
Socio-Cultural
Natural
1. Demographic Environment
The main demographic force that marketers monitor is population because people make up markets.
Marketers are keenly interested in the:
Size and growth rate of populations in cities, regions, and nations.
Age distribution and ethnic mix.
Educational levels.
Household patterns.
Regional characteristics and movements
Worldwide Population Growth
World population growth is explosive: Earth’s population totaled 6.8 billion in 2010 and will exceed 9 billion by 2040.
Population growth is highest in countries and communities that can least afford it.
A growing population does not mean growing markets unless there is sufficient purchasing power.
Note: A growing population does not mean growing markets unless these markets have sufficient purchasing power.
Companies that carefully analyze their markets can find major opportunities: China’s “Little Emperors
Child-care facilities such as BabyCare are riding on Chinese parents’ indulgence on their “Little
Emperors.” Besides conducting classes to develop young children’s spatial perception and motor skills, BabyCare also generates revenue from the sales of supplements and educational toys.
Key Trends in the Demographic Environment
Marketing and Sensitivity to Different Cultures
McDonald’s, in deference to Islamic sensitivities, replaced the robotic cat Doraemon toy charm with a Cupid version, giving an incomplete Chinese zodiac collection.
Household Patterns
The “traditional household” consists of a husband, wife, and children (and sometimes grandparents).
In Asia, extended families are common.
In some countries, there may be “non-traditional” households which include single live-alones, adult live-togethers of one or both sexes,
Scanning of the Marketing Environment – Opportunities or threats?
Environmental Forces—Firms must monitor six major forces in the broad environment:
Demographic
Political-Legal
Economic
Technological
Socio-Cultural
Natural
1. Demographic Environment
The main demographic force that marketers monitor is population because people make up markets.
Marketers are keenly interested in the:
Size and growth rate of populations in cities, regions, and nations.
Age distribution and ethnic mix.
Educational levels.
Household patterns.
Regional characteristics and movements
Worldwide Population Growth
World population growth is explosive: Earth’s population totaled 6.8 billion in 2010 and will exceed 9 billion by 2040.
Population growth is highest in countries and communities that can least afford it.
A growing population does not mean growing markets unless there is sufficient purchasing power.
Note: A growing population does not mean growing markets unless these markets have sufficient purchasing power.
Companies that carefully analyze their markets can find major opportunities: China’s “Little Emperors
Child-care facilities such as BabyCare are riding on Chinese parents’ indulgence on their “Little
Emperors.” Besides conducting classes to develop young children’s spatial perception and motor skills, BabyCare also generates revenue from the sales of supplements and educational toys.
Key Trends in the Demographic Environment
Marketing and Sensitivity to Different Cultures
McDonald’s, in deference to Islamic sensitivities, replaced the robotic cat Doraemon toy charm with a Cupid version, giving an incomplete Chinese zodiac collection.
Household Patterns
The “traditional household” consists of a husband, wife, and children (and sometimes grandparents).
In Asia, extended families are common.
In some countries, there may be “non-traditional” households which include single live-alones, adult live-togethers of one or both sexes,