Factors affecting Marketing Environment Essay Example

because they are growing rapidly. Geographical Shifts in Population This is a period of great migratory movements between and within countries. For example, the establishment of Special Economic Zones along coastal China led to many mainlanders moving to such cities as Sheehan. Neighboring Hong Congers have also flocked to the city for its better Job prospects and lower cost of living.

Economic Environment

The available purchasing power in an economy depends on current income, prices, savings, debt, and credit availability. Marketers must pay careful attention to trends affecting purchasing power, because they can have a strong impact on business, especially for companies whose products are geared to high-income and price- sensitive consumers The global economy In a global economy, marketers need to pay attention to the shifting income distribution in countries, particularly countries where affluence levels are rising.

Example, Overland, a world-class theme park, is a popular place for friends, couples ND families in South Korea. Marketers often distinguish countries with five different income distribution patterns: Very low incomes Mostly low incomes Very low, very high incomes Low, medium, high incomes Mostly medium incomes Targeting Different Income Groups Chevy Spark, a subcompact hatchback, is a popular choice among young car-buyers in Asia for its bright colors, affordable price, fuel efficiency and safety. Cadillac, a luxury sedan, is a favorite choice for wealthy Chinese.

Income, Savings, Debt, and Credit Availability

Consumer expenditures are affected by: Income Savings Debt Credit availability Responding to Recession in Japan Recession in Japan has seen changes in lifestyle. Companies such as generic brand store Mull flourished as did 100-yen stores. Japanese also preferred to eat in than dine out 3. Socio-cultural

Environment Society shapes the beliefs, values, and norms that largely define these tastes and preferences. People absorb, almost unconsciously, a worldview that defines their relationships to themselves, to others, to organizations, to society, to nature, and to the universe.

Views of themselves Views of others Views of nature Views of organizations Views of society Views of the universe High Persistence of Core Cultural Values The people living in a particular society hold many core beliefs and values that tend Core beliefs and values are passed on from parents to children and are reinforced by major social institutions?schools, religious organizations, businesses, and governments. Secondary beliefs and values are more open to change. Believing in the institution of marriage is a core belief; believing that people should wed early is a secondary belief.

Marketers have more chance of changing secondary values than ore values. Existence of Sub-cultures Each society contains subcultures, groups with shared values emerging from their special life experiences or circumstances. E. G. Coplay in Japan Sub-cultures: Metropolises Personal care companies are targeting Indian men as rising incomes allow them to buy more deodorants and shaving gels. Metropolises? urban, heterosexual men who pay close attention to grooming and fashion?were popularized in India by Plywood actors such as Shah Rush Khan. Other includes e. g. Korean culture and Eat healthy,

Natural Environment

The deterioration of the natural environment is a major global concern. In many world cities, air and water pollution have reached dangerous levels. There is great concern about "greenhouse gases" in the atmosphere due to the burning of fossil fuels, about the depletion of the ozone layer due to certain chemicals, and about growing

shortages of water. However, in many less developed Asian countries, such environmental concern is lacking. Air, water, and noise pollution are common.

Reconciling Economic Objectives and Environmental Protection - Case of The Banyan Tree

This Singapore-based hotel and resorts chain incorporates sustainability benchmarking and educating local communities about marine life in its resorts. It is pursuit of sustainability with initiatives targeting conservation of resources and climate change awareness, without compromising on its revenue and profit. Corporate Environmentalism It recognizes the need to integrate environmental issues into the firm's strategic plans. Trends in the natural environment for marketers to be aware of include the shortage of raw materials, especially water; increased pollution levels; and the hanging role of governments.

See the "Marketing Insight: The Green Marketing Revolution. " City Square Mall is Singapore first CEO-friendly shopping mall, featuring waterless urinals in restrooms and an CEO-roof for solar power.

Technological Environment

One of the most dramatic forces shaping people's lives is technology. Innovation's major long-run consequences are not always foreseeable. Mobile phones, video games, and the Internet are reducing attention to traditional media as well as face- to-face social interaction as people listen to music or watch a movie on their mobile hones.

When old industries fight or ignore new technologies, their businesses decline. Monitoring the Key Trends in the Technological Environment The marketer should monitor the following trends in technology: Accelerating pace of change Unlimited opportunities for innovation Varying R budgets Increased regulation of technological change

Political-Legal Environment

The political and legal environment consists of laws, government agencies, and pressure groups that influence various organizations and individuals. Sometimes these laws create new business opportunities. E. G. Double

stamp duty seriously affected the property industry and the sales of property agencies e. G. Political unrest /riots/protests Examples of legislation affecting businesses in Asia For example, in Taiwan, Junk food ads are banned on children's TV programs to curb obesity. In China, outdoor advertising that promotes high-end lifestyles is banned. Words such as "royal," "luxury," or "high class" are banned. This legislation came about because of concerns over the widening wealth gap.

Types of Legislation

Affecting business Legislation affecting businesses has increased steadily over the years.