principle of marketing- scanning the marketing environment
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Principles of Marketing
Scanning the Marketing Environment
Prof Rushen Chahal
Prof. Rushen Chahal
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Learning ContentsLearning Contents
After studying this chapter, you should be able to:
1. Describe the market environment forces, fads andtrends that affect marketers
2. Explain how macroenvironment affect decisions of: demographic
economic
natural
technological
political-legal
social-cultural
3. Understand forecasting demand
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1.The Marketing Environment1.The Marketing Environment
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Fads
- Is a pattern that is short -lived, withoutany significance
Trends
- Is an established pattern of events thatis longer lasting and have its ups anddowns
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Macroenvironment : consists of the
societal forces that affect the
microenvironment
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2. The2. The MacroEnvironmentMacroEnvironment
A.A. Demographic environmentDemographic environment
B.B. Economic environmentEconomic environment
C.C. Natural environmentNatural environment
D.D. Technological environmentTechnological environmentE.E. Political environmentPolitical environment
F.F. SocialSocial--Cultural environmentCultural environment
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2.2.MacroEnvironmentMacroEnvironment
A) Demographic Environment
Demography is the study of humanpopulations in terms of size, density, location, age,
gender, race, occupation, and other statistics.
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2.2.MacroEnvironmentMacroEnvironment
i) Population shifts
- 6.5 billion and growing; Urban; Older people
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2.2. MacroEnvironmentMacroEnvironment
ii) Ethnicity
- Various minority groups; shifts in educational
needs
iii) Household
- 4-2-1 system
- Small family:- Double earners with/no kids;Single income with/no kids; Divorced;
Widow
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People living alonePeople living alone
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In thousands
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2.2.MacroEnvironmentMacroEnvironment
B) Economic Environment
Economic environment consists of factorslike:
i) Peoples income
ii) Savings/spending/debts.
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Lesson 3 Prof. Rushen Chahal
2.2. MacroEnvironmentMacroEnvironment
i) Income
- 5 Classes of income groups
- Extreme poverty 1985
- 2005, poverty decreases 20%
- In 2025, 60% are moderates
(mid-class)
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ii) Savings/debts/credit
- National deposit, foreign reserves
- Debts owed to foreign companies
- Credit or loans to boost economy
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2.2. MacroEnvironmentMacroEnvironment
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2.2.MacroEnvironmentMacroEnvironment
C. Natural Environment
The Environment involves the natural resources
useful for organizations.
Raw materials
Energy costs
Reduce pollution (government gives tax rebate;
recycle)
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2.2.MacroEnvironmentMacroEnvironment
D. Technological Environment
Technology is dramatic in changing the way
marketers work.
Internet -Virtual Reality to advertise
Medicine and food
Innovation (such as voice recognition)
Weapons
All-in-one cards
Intellectual properties
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2.2.MacroEnvironmentMacroEnvironment
Political-Legal Environment
Examples include regulations/legislation for
businesses
Protect companies (GOVERNMENT)
Protect consumers / society(SPECIALINTERESTS GROUP; UNIONS)
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2.2.MacroEnvironmentMacroEnvironment
Social-Cultural Environment
i)Values
- Personal (primary) values and beliefs hard to change.
- Secondary values easy to change
e.g. people should have children, although this can be delayed.
ii) Perception- how you see things
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3.Forecasting Demand3.Forecasting Demand
Forecasting is to measure and estimate;
market size, revenue, growth, number of
customers etc
i) Measure markets
ii) Market demandiii) Market potential
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3.Forecasting Demand3.Forecasting Demand
i) Measuring markets
a. Potential market (not market potential) people who
are interested
b. Available market what there is at the market (who
qualifies to buy the product?)
c.Target market targeting at what groups are profitable
d. Penetrated market customers that will buy
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