1. Analyzing the Marketing Environment
Chapter: 3

2. Macro Environment Demographic Economic Natural Technological Political
Cultural
Comapny

3. 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

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

5. 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

6. 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.

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

8. 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

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

10. 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’