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Marketing Environment


1. Demographic Environment
2. Economic Environment
3. Natural Environment
4. Technological Environment
5. Political legal Environment
6. Social – cultural environment

Demographic Environment: • World Wide Population Growth: The world population explosion has been a source of major concern. At the other extreme is Japan a country with one of the world’s oldest populations. high school dropouts. • Household Patterns: The “traditional household” consists of a husband . and professional degrees. Japan’s population would consume many more adult products. The explosive world population growth has major implications for business. diapers. In Japan. • Population Age Mix: National population vary in their age mix. high school degree. A growing population does not mean growing markets unless these markets have sufficient purchasing power. wife and children (and sometimes grandparents) . school supplies. college degree. The high number of educated people in the United States spells a high demand for quality books. for two reasons. 99 percent of the population is literate.15 percent of the population may be functionally illiterate. Milk. foods and minerals) are limited and may run out at some point. magazines and travel. whereas in the United States 10 . For the first fact that certain resources needed to support this much human life (fuel. • Educational Groups: The population in any society falls society into five educational groups: Illiterates. Mexico a country with a very young population and rapid population grown. 1. and toys would be important product in Mexico.

debt and credit availability. Egypt and Philipines. steel and heavy machinery and less on imported of finished textiles. Price. • Raw material exporting economies: These economies are rich in one or more natural resources but poor in other resources.• Economic Environment: Markets require purchasing power as well as people. Example Saudi Arabia (oil) • Industrializing economies: The manufacturing begins to account for 10 percent of gross domestic product. consume most of their output and barter the rest for simple goods and services. savings. The available purchasing power in an economy depends on current in come. These economies offer few opportunities for marketers. – Income Distribution : • Subsistence economies: The majority of the people engage in simple agriculture. Example India. paper products and processed foods . As manufacturing increases the country relies more on imports of raw materials.

air and water pollution have reached dangerous levels. Marketers need to be aware of the threats and opportunities associated with four trends in the natural environment. plastics and other packaging materials. The dangerous mercury levels in the ocean. . Finite renewable resources. such as forest and food. must be used wisely. the increased cost of energy. the quantity of chemical pollutants in the soil and food supply and the littering of the environment with bottles.• Natural Environment: The deterioration of the natural environment is a major global concern. pose on immediate problem although some groups see a long run danger. In many world cities. – Shortage of raw materials: Infinities resources such as air and water. The shortage of raw materials. – Increased pollution levels: Some industrial activity will inevitably damage the natural environment. Forestry companies are required to reforest timberlands in order to protect the soil and to ensure sufficient wood to meet future demand. increased pollution levels and the changing role of governments.

Instead of moving in to new technologies many old industries fought or ignored them and their business declined. . Transistors hurt the vacuum tube. Every new technology is a force for “Creative destruction”.Technological Environment: Advances in technology are an important uncontrollable environment for marketer in two ways. auto hurt the rail roads and television hurt the news papers. First they totally unpredictable and secondly adoption of new technology often is prevented by constraints imposed by internal and external resources.

Some times these laws also creative new opportunities for business. . For example. government agencies and pressure groups that influence and limit various organisations and individuals. This environment is composed of laws. mandatory recycling laws have given the recycling industry a major boost and spurred the creation of dozens of new companies making new products from recycled materials.Political and legal environment: Marketing decisions are strongly affected by developments in the political and legal environment.