CHAPTER 5 SCANNING THE MARKETING ENVIRONMENT

TRENDS IN THE MACROENVIRONMENT n Trends vs. Fad n Mega-trends – Large social, economic, political and technological changes that influence us a long time: » Globalization » Free-market socialism » Privatization » Computer age and Internet » E-book » Rise of the Pacific Rim, etc.

MACROENVIRONMENT FORCES n Uncontrollable forces which shape up economic and social system such as world wide economic development(G-7), EU and NAFTA, national debts of Latin American and Asian countries, foreign currency reserve and countertrade, new emerging markets. Within this context companies should monitor demographic, economic, natural, technological, political/legal and social/cultural forces.

MACROENVIRONMENT FORCES (CONT.) n Demographic: »Statistical Abstract of the US: n population growth n age mix n ethnic markets n education n household patterns n shifts in population.

MACROENVIRONMENT FORCES (CONT.) n Economic Environment: » Income distribution: n Substance-very low income n Raw-material-exporting-mostly very low income n Industrializing-high and low income n Industrial-low,medium and high income) » Saving, debt and credit availability. n Natural Environment » Shortage of raw materials » Increased cost of energy » Increased pollution level » Role of governments in environmental protection.

MACROENVIRONMENT FORCES (CONT.) n Technological Environment: » Accelerated technological change-computer/Internet » Unlimited opportunities for innovation-AIDS, Virtual Reality » R&D budget » Increased regulation-FDA n Political/Legal Environment: » Legislation regulating business: n Unfair competition » Growth of interest groups: n Consumerism

MACROENVIRONMENT FORCES (CONT.) n Social/Cultural Environment: » Cultural values: n Views of themselves n Views of others n Views of organization n Views of society n Views of nature n Views of universe » Core and secondary beliefs n Subcultures: – Shifts in cultural values: – From 1960’s life style to 1990’s and new millennium.

RECENT CHANGES IN THE MACRO FACTORS n Migration trends: »Growing urban areas. »Growing population in suburbs. »Growing populations in the West and the South. n Country Life: »Quality of life. »Aging population. »Industries and telecommunications. »Resort and recreation

RECENT CHANGES IN THE MACRO FACTORS (CONT.) n North, East, South and West: »Population down in the Northeast and Midwest. »Moving to the sun belt. »Shifts in the number of seats in the congressional seats. n New Americans: »Melting pots. »South and West. »Northeast and Midwest