Sonic Marketing Plan

Chapter 3

Demographic, economic and technological change

Prof. D.Hamad Al-GhadeerBy Aasem alsayyed solaiman

Questions

Jane Melody asks you to scan Sonic’s external environment for early warning signals of new opportunities and emerging threats that could affect the success of the Sonic 1000 smart phone. Using Internet or library sources (or both), locate information to answer three questions about key areas of the macroenvironment.

• What demographic changes are likely to affect Sonic’s targeted segments?

• What economic trends might influence buyer behavior in Sonic’s targeted segments?

• How might the rapid pace of technological change/alter Sonic’s competitive situation?

What demographic changes are likely to affect Sonic’s targeted segments?

Demographic factors

• Demographic developments often move at a fairly predictable pace. The main one marketers monitor is population, including the size and growth rate of population in cities, regions, and nations; age distribution and ethnic mix; educational levels; household patterns; and regional characteristics and movements.

-Recommendation

• Sonic should monitor all of its Targeted Segments growth along with Demographical shifts, to take into consideration how these changes possibly affect its marketing plan and strategy.

What economic trends might influence buyer behavior in Sonic’s targeted segments?

Economic factors

• One of the most important economic factors that must be taken into consideration is the purchasing power.

• The available purchasing power in an economy depends on current income, prices, savings, debt, and credit availability. As the recent economic downturn vividly demonstrated, trends affecting purchasing power can have a strong impact on business, especially for companies whose products are geared to high-income and price-sensitive consumers.

-Recommendation• Sonic should monitor economic conditions that may affect their job and

business stability and prepare scenario analysis to deal with different uncertainties.

How might the rapid pace of technological change/alter Sonic’s competitive situation?

Technology factors

• It is the essence of market capitalism to be dynamic and tolerate the creative destructiveness of technology as the price of progress.

• With the rise of digital technologies in a rapid pace, informed consumers today expect companies to do more than connect, satisfy, and delight them. They anticipate companies to listen and respond to them.

• So, Failure to respond to new technologies Leads businesses to decline.

-Recommendation• Sonic should monitor technology trends like accelerating pace of

change, unlimited opportunities for innovation, varying R&D budgets, and increased regulation of technological change.

References

• Kotler, P., & Keller, K. L. (2012). Marketing management. Upper Saddle River, N.J: Prentice Hall.

• Internet world wide web

Q & A

Thank you