The Company’s Macroenvironment

The company and all of the other actors operate in a larger macroenvironment of forces that shape opportunities and pose threats to the company. Major forces in the company’s macroenvironment include:

Demographic Environment

Demography is the study of human populations in terms of size, density, location, age, sex, race, occupation, and other statistics. It is of major interest to marketers because it involves people, and people make up markets.

Demographic trends are constantly changing. Some of the more interesting trends are:

1). The world’s population rate is growing at an explosive rate (though not in all countries) that will soon exceed food supply and ability to adequately service the population. The greatest danger is in the poorest countries where poverty contributes to the difficulties.

2). In the United States, the most important trend is the changing age structure of the population. The US population contains seven generational groups:

ü GI Generation: 74+ year old – 9.1%

ü Depression: 64-73 year old – 6.5%

ü War Babies: 58-63 year old – 5.7%

ü Baby Boomers: 39-57 year old – 28.2%

ü Generation X: 27-38 year old – 16.4 %

ü Generation Y: 9-26 year old – 25.8%

ü Millennials: 0-8 year old – 8.3%

The population is aging because of a slowdown in the birth rate (in this country) and life expectancy is increasing.

The three largest generation groups:

The baby boomers following World War II has produced a huge “bulge” in our population’s age distribution. The new prime market is the middle age group (in the future it will be the senior citizen group). There are many subdivisions of this group.

Generation X —this group lies in the shadow of the boomers and lack obvious distinguishing characteristics. They are a very cynical group because of all the difficulties that have surrounded and impacted their group. They have also been labeled the “MTV generation.”

Generation Y (echo boomers) are the large growing kid and teen market. This group is used to affluence on the part of their parents (as different from the Gen Xers). One distinguishing characteristic is their utter fluency and comfort with computer, digital, and Internet technology (sometimes called Net-Gens).

Generational marketing is possible, however, caution must be used to avoid generational alienation.

3). The American family is also changing. The number of married couples continues to decline, the number of working mothers is increasing, there is a shift between traditional male and female roles, and males are increasingly seen as increasing their participation in domestic responsibility. Since marriage seems to be declining, the nonfamily households are increasing. Being single is popular, as is later marriage. Single-parent households account for more than half of all households. Marketers will be targeting the special needs of each of these groups.

4). Geographic shifts in population will also alter demographics. Americans are mobile, prefer moving to the Sunbelt states, prefer urban environments, and choose the suburbs over the inner city. More Americans are moving to micropolitan areas (small cities beyond congested metropolitan areas). These statistics are important so a firm can make judgments about targeting their markets where they live now and be prepared to follow them as they move in the future. Soon many people will “telecommute” to work.

5). In general, the population is becoming better educated. The work force is becoming more white-collar. Products such as books and education services appeal to groups following this trend. Technical skills (such as in computers) will be a must in the future.

6). The final demographic trend is the increasing ethnic and racial diversity of the U. S. population. America has been called a “melting pot” but it is probably more like a “salad bowl” where groups stay separate and maintain at least a portion of their native culture (such as language, customs, traditions, etc.). Diversity is a force that must be recognized in the next decade. However, companies must recognize that diversity goes beyond ethnic heritage. Marketers now appreciate the purchasing power of the gay and lesbian communities and are increasingly targeting specific efforts toward these groups. One the important markets of the future is that of disabled people (a market larger any of our ethnic minority groups).

Economic Environment

The economic environment includes those factors that affect consumer buying power and spending patterns. Major economic trends in the United States include:

1). Changes in income—personal consumption (along with personal debt) has gone up (1980s) and the 1990s brought recession that has caused adjustments both personally and corporately in this country. In the 2000s, consumers are more careful shoppers.

2). Value marketing (trying to offer the consumer greater value for their dollar) is a very serious strategy in the 2000s. Real income is on the rise again but is being carefully guarded by a value-conscious consumer.

3). Income distribution is still very skewed in the U. S. and all classes have not shared in prosperity. In addition, spending patterns show that food, housing, and transportation still account for the majority of consumer dollars. It is also of note that distribution of income has created a “two-tiered market” where there are those that are affluent and less affluent.

a). Classes of consumers include:

1]. Upper-class —spending patterns are not affected by current economic events; this group is a major market for luxury goods.

2]. Middle class —somewhat careful about its spending but can still afford the good life some of the time.

3]. Working class —must stick close to the basics of food, clothing, and shelter and must try hard to save.

4]. Underclass —(persons on welfare and many retirees) must count their pennies when making even the most basic purchases.

4). Changing consumer spending patterns:

a). Consider Engle’s Laws where differences were noted over a century ago by Ernst Engle regarding how people shift their spending across food, housing, transportation, health care, and other goods and service categories as family income rises. Spending patterns have generally supported his ideas.

b). Marketers must carefully monitor economic changes so they will be able to prosper with the trend, not suffer from it.

Natural Environment

The natural environment involves natural resources that are needed as inputs by marketers or that are affected by marketing activities. During the past two decades environmental concerns have steadily grown. Some trend analysts labeled the 1990s as the “Earth Decade,” where protection of the natural environment became a major worldwide issue facing business and the public. Specific areas of concern were:

1). Shortages of raw materials. Staples such as air, water, and wood products have been seriously damaged and non-renewables such as oil, coal, and various minerals have been seriously depleted during industrial expansion.

2). Increased pollution is a worldwide problem. Industrial damage to the environment is very serious. Far-sighted companies are becoming “environmentally friendly” and are producing environmentally safe and recyclable or biodegradable goods. The public response to these companies is encouraging.

3). Government intervention in natural resource management has caused environmental concerns to be more practical and necessary in business and industry. Leadership, not punishment, seems to be the best policy for long-term results. Instead of opposing regulation, marketers should help develop solutions to the material and energy problems facing the world.

4). Environmentally sustainable strategies and practices are being created.

a). Concern for the natural environment has spawned the so-called green movement.

c). Companies are recognizing a link between a healthy economy and a healthy ecology.

Technological Environment

The technological environment includes forces that create new technologies, as well as new product and market opportunities.

1). Technology is perhaps the most dramatic force shaping our destiny.

2). New technologies create new markets and opportunities. However, every new technology replaces an older technology.

3). The challenge is not only technical but also commercial—to make practical, affordable versions of products.

Political Environment

Business is regulated by various forms of legislation.

1). Governments develop public policy to guide commerce—sets of laws and regulations limiting business for the good of society as a whole.

2). Almost every marketing activity is subject to a wide range of laws and regulations.

Some trends in the political environment include:

1). Increasing legislation to:

a). Protect companies from each other.

b). Protect consumers from unfair business practices.

c). Protect interests of society against unrestrained business behavior.

2). Changing government agency enforcement. New laws and their enforcement will continue or increase.

3). Increased emphasis on ethics and socially responsible actions. Socially responsible firms actively seek out ways to protect the long-run interests of their consumers and the environment.

a). The recent rash of business scandals and increased concerns about the environment have created fresh interest in the issues of ethics and social responsibility.

b). The boom in e-commerce and Internet marketing has created a new set of social and ethical issues.

1]. Privacy issues are the primary concern.

2]. Another cyberspace concern is that of access by vulnerable or unauthorized groups.

Cultural Environment

The cultural environment is made up of institutions and other forces that affect society’s basic values, perceptions, and behaviors. Certain cultural characteristics can affect marketing decision making. Among the most dynamic cultural characteristics are:

1). Persistence of cultural values. People’s core beliefs and values have a high degree of persistence. Core beliefs and values are passed on from parents to children and are reinforced by schools, churches, business, and government. Secondary beliefs and values are more open to change.

2). Shifts in secondary cultural values. Since secondary cultural values and beliefs are open to change, marketers want to spot them and be able to capitalize on the change potential.

3). The Yankelovick Monitor has identified eight major consumer themes:

a). Paradox.

b). Trust not.

c). Go it alone.

d). Smarts really count.

e). No sacrifices.

f). Stress hard to beat.

g). Reciprocity is the way to go.

h). Me 2.

4). Society’s major cultural views are expressed in:

a). People’s views of themselves. People vary in their emphasis on serving themselves versus serving others. In the 1980s, personal ambition and materialism increased dramatically, with significant implications for marketing. The leisure industry was a chief beneficiary.

b). People’s views of others. Observers have noted a shift from a “me-society” to a “we-society.” Consumers are spending more on products and services that will improve their lives rather than their image.

c). People’s views of organizations. People are willing to work for large organizations but expect them to become increasingly socially responsible. Many companies are linking themselves to worthwhile causes.

d). People’s views of society. This orientation influences consumption patterns. “Buy American” versus buying abroad is an issue that will continue into the next decade.

e). People’s view of nature. There is a growing trend toward people’s feeling of mastery over nature through technology and the belief that nature is bountiful. However, nature is finite. Love of nature and sports associated with nature are expected to be significant trends in the next several years.

f). People’s views of the universe. Studies of the origin of man, religion, and thought-provoking ad campaigns are on the rise. Spiritual individualism may be a new theme.

Дата добавления: 2015-10-30