Scanning Marketing Environment
Chapter 5: Scanning Marketing Environment Analyzing needs and trends in the Macroenviroment Trends ? is a directional or sequence of events that some have momentum and durability. ? Has longevity, is observable across several market areas and consumer activities and is consistent with other significant indicators occurring or emerging at the same time(Faith Popcorn) Faith Popcorn points to 16 Trends in the Economy 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Anchoring Being Alive Cashing Out Clanning Cocooning Down-aging Egonomics Fantasy Adventure Female Think Icon Toppling 11. 2. 13. 14. 15. 16. Mancipation 99 lives Pleasure revenge S. O. S (Save our Society) Small Indulgences The Vigilant consumer Fads ? Is unpredictable, short-lived, and with-out social, economical, and political significance. ? it refers to a fashion that becomes popular in a culture (or subcultures) relatively quickly, remains popular, often for a rather brief period, then loses popularity dramatically, as it either fades into obscurity, or becomes a regular part of a society’s culture. (Wikipedia) Megatrends Large social, economic, political, and technological changes [that] are slow to form and once in place, they influence us for some time ? between seven to ten years or longer. ( John Naisbitt ) 10 megatrends Naisbitt has identified 1. The booming global economy 2. A renaissance in the arts 3. The emergence of free-market socialism 4. Global lifestyle and cultural nationalism 5. The privatization of the welfare 6. The rise of Pacific Rim 7. The decade of women in leadership 8. The age of biology 9. The religious revival of the new millennium 10. The triumph of individual Identifying and responding to the major Macroenvironment Forces
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Identifying and Responding to the Major Macroenvironment Forces • The substantial speedup of international transportation, communication, and financial transactions, leading to the rapid growth of world trade and investment, especially tripolar trade (North America, Western Europe, Far East) • The rising economic power of several Asian countries in world markets. Identifying and Responding to the Major Macroenvironment Forces • The move toward market economies in formerly socialist countries along with rapid privatization of publicly owned companies. • The rapid dissemination of global lifestyles. The gradual opening of major new markets, namely China, India, eastern Europe, the Arab countries, and Latin America. • The increasing tendency of multinationals to transcend their locational and national characteristics and become transnational firms. • The increasing number of cross-border corporate strategic alliances–for example, MCI and British Telecom, and Texas Instruments and Hitachi. Identifying and Responding to the Major Macroenvironment Forces • The increasing ethnic and religious conflicts in certain countries and regions. • The growth of global brands in autos, food, clothing, electronics. The severe debt problems of a number of countries, along with the increasing fragility of the international financial system. • The increasing use of barter and countertrade to support international transactions. Demographic Environment Worldwide Population Growth Population Age mix Ethic Market Educational Groups House Patterns Geographical Shifts in Population Shift from Mass to Micromarkets Economic Environment Income Distribution • Subsistence economies • Raw-materialsexporting economies • Industrializing economies • Industrial economies Savings, Debt, Credit availability Natural Environment
Shortage of raw materials Increased Energy Cost Increased Pollution Levels Changing Roles of Government Technology Environment Accelerating Pace of Technology Change Unlimited Opportunities for Innovation Varying R Budgets Increased Regulation of Technological Changes Political-Legal Environment Legislation Regulation Growth of Special –Interest Groups Socio-cultural Environment … themselves …. universe … others Views of … …nature … society … organizatio n Socio-Cultural Environment High Persistence of Core Cultural Values Existences of Subcultures Shifts of Secondary Cultural Values Through Time