Analyzing the Marketing Environment

Chapter: 3

Macro Environment

Demographic Economic Natural Technological Political Cultural

Comapny

The Macro Environment

• Demographic Environment

The study of human population in terms of size, density, location, age, gender, race, occupation and other statistics

e.g. 1)China decrease in population

2) P & G pampers in populated countries

Demographic Environment Contd.

• A Growing Middle Class - Deprived households: income less than 90,000 e.g. unskilled

- Aspires: annual income between 90,000- 200,000 e.g. farmer, low skilled

- Seekers: income between 200,000-500,000 e.g. young postgraduates, mid-level gov. officials

- Strivers: 500,000- 1000,000 e.g. CA’s , MBA’s

- Global People: more than 1000,000 e.g. Politicians, film artists, business men

Demographic Environment Contd

• Rural and Urban population - Difference in facilities

• Changing Family system - Traditionally joint family system was common in

Asian countries - Independence is given to the couples

Demographic Environment Contd.

• The changing role of women - earnings have increased the

disposable income e.g.1) increase in the number of

day cares 2) Hero Honda- Just for her 3)Car colors (pink, orange etc.)• Better educated population - increase demand of books,

magazines etc.

Demographic Environment Contd.

• Increasing diversity e.g. England, Diverse cultural Tv shows: they cast people from different cultures

Economic Environment• Factors that affect consumer buying power

and spending patterns e.g. Tata Nano- The Global Financial Crisis = Loans defaulted = Euro rate = housing as a slow markete.g. Dubai’s market collapsed

Economic Environment

• Changing income distribution - People shift their spending as family income

increases - e.g. housekeepers now have fridge, mobiles etc.

Natural Environment• Natural resources that are needed as inputs by marketers or that are

affected by marketing activities - e.g. Arabian Gulf- oil reserves they have big cars - shortages of raw material e.g. water, - increased population e.g. packaging material TESCO- extra points for cloth bag - increased government intervention rich governments do a lot e.g. different color boxes for garbage disposal e.g. reusable bags, bottles - Environmental friendly products e.g. GE “Ecomagination’