Analyzing the Marketing Environment Chapter: 3

Macro Environment Demographic Economic Natural Technological Political Cultural Comapny

The Macro Environment Demographic Environment The study of human population in terms of size, density, location, age, gender, race, occupation and other statistics e.g. 1)China decrease in population 2) P & G pampers in populated countries

Demographic Environment Contd. A Growing Middle Class - Deprived households: income less than 90,000 e.g. unskilled - Aspires: annual income between 90,000- 200,000 e.g. farmer, low skilled - Seekers: income between 200,000-500,000 e.g. young postgraduates, mid-level gov. officials - Strivers: 500,000- 1000,000 e.g. CA’s , MBA’s Global People: more than 1000,000 e.g. Politicians, film artists, business men

Demographic Environment Contd Rural and Urban population - Difference in facilities Changing Family system - Traditionally joint family system was common in Asian countries - Independence is given to the couples

Demographic Environment Contd. The changing role of women - earnings have increased the disposable income e.g.1) increase in the number of day cares 2) Hero Honda- Just for her 3)Car colors (pink, orange etc.) Better educated population - increase demand of books, magazines etc.

Demographic Environment Contd. Increasing diversity e.g. England, Diverse cultural Tv shows: they cast people from different cultures

Economic Environment Factors that affect consumer buying power and spending patterns e.g. Tata Nano The Global Financial Crisis = Loans defaulted = Euro rate = housing as a slow market e.g. Dubai’s market collapsed

Economic Environment Changing income distribution - People shift their spending as family income increases - e.g. housekeepers now have fridge, mobiles etc.

Natural Environment Natural resources that are needed as inputs by marketers or that are affected by marketing activities - e.g. Arabian Gulf- oil reserves they have big cars - shortages of raw material e.g. water, - increased population e.g. packaging material TESCO- extra points for cloth bag - increased government intervention rich governments do a lot e.g. different color boxes for garbage disposal e.g. reusable bags, bottles - Environmental friendly products e.g. GE “Ecomagination’