Echo boomers (baby boom lets) are the large growing kid and teen market. This group is used to affluence on the part Of their parents (as different from the Gene Seers). One distinguishing characteristic is their utter fluency and comfort with computer, digital, and Internet technology (sometimes called Net-Gene). C).
Generational marketing is possible, however, caution must be used to avoid generational alienation. Many in the modern family now at home or in a remote office and conduct their business using fax, cell phones, modem, or the Internet In general, the population is becoming better educated.The work force is be-coming ore 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. The final demographic trend is the increasing ethnic and racial diversity of the population. Diversity is a force that must be recognized in the next decade. However, companies must recognize that diversity goes beyond ethnic heritage.
One the important markets of the future are that disabled people (a market larger any of our ethnic minority groups). B.Economic Environment The economic environment includes those factors that affect consumer archiving power and spending patterns. Major economic trends in the United States include: * 1). Personal consumption (along with personal debt) has gone up (sass) and the early sass brought recession that has caused adjustments both personally and corporately in this country. Today, 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 sass. 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 marker’ where there are those that are affluent and less affluent. Marketers must carefully monitor economic changes so they will be able to prosper with the trend, not suffer from it. C. 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 specific areas of concern were: 1) Shortages of raw materials. Staples such as air, water, and wood products have been seriously damaged and non-renewable 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. However, lack of adequate funding, especially in third world countries, is a major barrier. 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.The so-called green movement has encouraged or even demanded that firms reduce strategies that are not only environmentally friendly but are also environmentally proactive. Firms are beginning to recognize the link between a healthy economy and a healthy environment.
D. Technological Environment The technological environment includes forces that create new technologies, creating new product and market opportunities. 1) Technology is perhaps the most dramatic force shaping our destiny. 2). New technologies create new markets and opportunities.
3). The following trends are worth watching: * a). Faster pace of technological change.Products are being technologically outdated at a rapid pace. * b). There seems to be almost unlimited opportunities being developed daily.
Consider the expanding fields of health care, the space shuttle, robotics, and epigenetic industries. * c). The challenge is not only technical but also commercial–to make practical, affordable versions of products. * d). Increased regulation. Marketers should be aware of the regulations concerning product safety, individual privacy, and other areas that affect technological changes.
They must also be alert to any possible negative aspects of an innovation that might harm users or arouse opposition. Political Environment The political environment includes laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society. Various forms of legislation regulate business.
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).Protecting consumers from unfair business practices * c). Protecting 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).
Enlightened companies encourage their managers to look beyond regulation and “do the right thing. ” * b). Recent scandals have increased concern about ethics and social responsibility. C). The boom in e-commerce and Internet marketing has created a new set of social and ethical issues. Concerns are Privacy, Security, Access by vulnerable or unauthorized groups f. Cultural Environment The cultural environment is made up of institutions and other forces that affect society basic values, perceptions, preferences, 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 hillier 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. Society major cultural views are expressed in: a). Peoples views Of themselves. People vary in their emphasis on serving themselves versus serving others. In the sass, personal ambition and materialism increased dramatically, with significant implications for marketing.