Principle of Marketing- Scanning the Marketing Environment

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Principles of Marketing

Scanning the Marketing Environment

Prof Rushen Chahal

Prof. Rushen Chahal


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Learning ContentsLearning Contents

After studying this chapter, you should be able to:

1. Describe the market environment forces, fads andtrends that affect marketers

2. Explain how macroenvironment affect decisions of: demographic

economic

natural

technological

political-legal

social-cultural

3. Understand forecasting demand

Lesson 3 Prof. Rushen Chahal


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1.The Marketing Environment1.The Marketing Environment


Fads

- Is a pattern that is short -lived, withoutany significance

Trends

- Is an established pattern of events thatis longer lasting and have its ups anddowns


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Macroenvironment : consists of the

societal forces that affect the

microenvironment


2. The2. The MacroEnvironmentMacroEnvironment

A.A. Demographic environmentDemographic environment

B.B. Economic environmentEconomic environment

C.C. Natural environmentNatural environment

D.D. Technological environmentTechnological environmentE.E. Political environmentPolitical environment

F.F. SocialSocial--Cultural environmentCultural environment


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2.2.MacroEnvironmentMacroEnvironment

A) Demographic Environment

Demography is the study of humanpopulations in terms of size, density, location, age,

gender, race, occupation, and other statistics.



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i) Population shifts

- 6.5 billion and growing; Urban; Older people



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2.2. MacroEnvironmentMacroEnvironment

ii) Ethnicity

- Various minority groups; shifts in educational

needs

iii) Household

- 4-2-1 system

- Small family:- Double earners with/no kids;Single income with/no kids; Divorced;

Widow


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People living alonePeople living alone


In thousands


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B) Economic Environment

Economic environment consists of factorslike:

i) Peoples income

ii) Savings/spending/debts.



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i) Income

- 5 Classes of income groups

- Extreme poverty 1985

- 2005, poverty decreases 20%

- In 2025, 60% are moderates

(mid-class)


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ii) Savings/debts/credit

- National deposit, foreign reserves

- Debts owed to foreign companies

- Credit or loans to boost economy




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C. Natural Environment

The Environment involves the natural resources

useful for organizations.

Raw materials

Energy costs

Reduce pollution (government gives tax rebate;

recycle)



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D. Technological Environment

Technology is dramatic in changing the way

marketers work.

Internet -Virtual Reality to advertise

Medicine and food

Innovation (such as voice recognition)

Weapons

All-in-one cards

Intellectual properties



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Political-Legal Environment

Examples include regulations/legislation for

businesses

Protect companies (GOVERNMENT)

Protect consumers / society(SPECIALINTERESTS GROUP; UNIONS)



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Social-Cultural Environment

i)Values

- Personal (primary) values and beliefs hard to change.

- Secondary values easy to change

e.g. people should have children, although this can be delayed.

ii) Perception- how you see things



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3.Forecasting Demand3.Forecasting Demand

Forecasting is to measure and estimate;

market size, revenue, growth, number of

customers etc

i) Measure markets

ii) Market demandiii) Market potential



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3.Forecasting Demand3.Forecasting Demand

i) Measuring markets

a. Potential market (not market potential) people who

are interested

b. Available market what there is at the market (who

qualifies to buy the product?)

c.Target market targeting at what groups are profitable

d. Penetrated market customers that will buy



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Principle of Marketing- Scanning the Marketing Environment

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