environment influence

7/31/2019 Environment Influence

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Social responsibility

concept has crept into

marketing literature as analternative to the marketing

concept.

There are innumerable

number of pressure group

in the society like

politicians, government,

consuming public, socialworkers, mass media etc

who impose restrictions on

the marketing process.

EXAMPLE: Recentlywith a drop in interest

rates the banking

industry in finding it hard

to mobilize small savingsand stock markets are

fast emerging as better

investment option to

investors.


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ECONOMIC FACTORS AFFECTS THE

RETAILERS

GDP

Higher growth rate of GDP

implies that consumers have

more income.

Resulting in higher sales

and more profits for retailers.

Increase in inflation leads to

a decrease in the purchasing

power.


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RATE OF INFLATION

The economic environment

encompasses such as

productivity, income, wealth,

inflation, balance of payment,

pricing, poverty, interest rate,credit, transportation, and

employment.

The current forecast isestimated at 15-20 percent


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PURCHASING POWER

Educational attainment

is the single most reliable

indicator of a persons

income potential,attitudes, and spending

habits.

More alert to price,

quality, and advertised

claims.


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INTEREST RATES

Education levels for the

population, in aggregate,

are expected to continue

to rise, retailers canexpect consumers to

become increasingly

sophisticated,

discriminating, and

independent in theirsearch for consumer

products.


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TAX LEVELS

Where an organization is

seeking to do business in a

country which is quite different

from its own.

The desire of a sub-cultural in

one country, to imitate the

values of those in anotherculture has, also contributed to

cultural convergence.


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There are some core-cultural values, which are found in our society

deep rooted and stable and hence change very little.

There are different degrees with which people adopt them

Religion is also an important element of culture, which has

implication on marketing.


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Technology is one of the most

important drivers of change in the

retail industry.

Technology has freed up time as

capital goods replace labour in the

home.

Markets and companies have

grown due to the links between

innovation and technology.

Retailers are also using

technology to improve the shopping

environment and to provides a

pleasant shopping experience to the

customer


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Retail chains are using

intranets to automate and

streamline human resource

operations.

The pace of technological

change has become increasingly

rapid and retailers need tounderstand how technological

developments might affects

business areas.

The benefits of all the

technology employed cannot be

gauged.

EXAMPLE: RFID is

gaining importance

which makes it easy for

the companies to track

their SKU and reduce

manpower.


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Sources of

technology like

company sources,

external sources andforeign sources, cost of

technology acquisition,

collaboration in, and

transfer of technology.


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Communication and

infrastructural

technology, forexample, electronic

marketing, voicemail,

video conferencing

affecting travel

industry, e-mail

affecting postal

industry.

Technological

development stages of

development, changeand rate of change of

technology and

research by electronic

typewriters, which were

further replaced by

computers.


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Impact of technology on human beings, the non-machine system,

and the environment effects of technology

Example: invention of microwave, kitchen appliances and frozen

foods have given housewife's more free time to carry on other

activities.


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environment influence

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