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MACRO ENVIRONMENTAL FACTORS

Environmental Forces
Demographic
Political-Legal Economic

Technological Natural
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Socio-Cultural

Population and Demographics


Population growth Population age mix Ethnic markets Educational groups Household patterns Geographical shifts

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MobilinkDisney D 100 Mobile Phone

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Population Age Groups


65+ 40-65 25-40 Teens School-age Preschool
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Household Patterns

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3-6

Economic Environment
Income Distribution Savings, Debt, and Credit Levis has responded to changes in income distribution by offering an upscale line and a mass market line

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3-7

Social-Cultural Environment
Views of themselves Views of others Views of organizations Views of society Views of nature Views of the universe
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Islamic Banking: Reflecting Religious and Cultural Sensitivities


Consistent with principles of Islamic Laws (Shariah) Prohibits investing in business that are considered unlawful Growth is due to disenchantment with value-neutral capitalist and socialist financial systems Popular in Pakistan and Bangladesh, National and international banks want to start Islamic banking in India
Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Cartoon Networks New Generation Survey


Achieving good grades at school all respondents Looking good 90% of respondents Being religious/traditional 84% of respondents Having boyfriend/girlfriend 40% of respondents Career aspirations One-third wanted to be doctor, 21% of wanted to be engineer

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Natural Environment
Shortage of raw materials Increased energy costs Anti-pollution pressures Governmental protections
Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Toyota Experienced Success with Green Cars

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Figure 3.1 Consumer Environmental Segments


True Blue Greens (30%)
Greenback Greens (10%) Sprouts (26%) Grousers (15%) Apathetics (18%)
Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Keys to Avoiding Green Marketing Myopia


Consumer Value Positioning Calibration of Consumer Knowledge Credibility of Product Claims

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Technological Environment
Pace of change Opportunities for innovation Varying R&D budgets

Increased regulation of change


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Political-Legal Environment

Increase in business legislation

Growth of special interest groups

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Marketing Debate
Is consumer behavior more a function of a persons age or generation? Take a position: 1. Age differences are fundamentally more important than cohort effects. or 2. Cohort effects can dominate age differences.
Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Marketing Discussion
What brands do you feel successfully speak to you? Effectively target your age group? Which ones do not? What could they do better?

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

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