environment influence
TRANSCRIPT
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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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