CARDIFF BUSINESS SCHOOL ASSIGNMENT: MARKETING ENVIRONMENT

In the context of the marketing environment it is said Marketing Organization having to cope with changes in demand patterns as older consumers become more

significant in their markets and younger people less so. In the context of uropean competition discuss! with

examples! some of the opportunities provided by these changing address" Younger Market Seg ent demand pattern and how the markets could

Submitted by: G!nn! Ma"!k #or$%: &'() Nus Number: ''*+,((-. Date o/ Su0 !%%!on: ,+ t1 2anuar3 +'',

Marketing environment is changing day by day so marketing organizations according to have to change pattern. their marketing of strategy marketing

demand

#canning

environment is necessary. It will evaluate the company and its product to reach social the appropriate is market changing. segment. #o the

conomic

and

environment

demand pattern is not predictable in

uropean Market the

social groups have difference in demand pattern. $he younger market segment is very important for

marketing organization because in

uropean countries this

segment is on increasing scale since the population is not increasing at higher rate the number of younger is stable. $he population is rising at a rate of below %&. $he younger generation consists of different ethnic groups with different life styles. #o the marketing organizations have to shift from macro market approach to micro market approach each segment of market re'uires different treatment. (ounger section of society have different thinking. $hey want

products! which are new and have appealing style. (ounger generation is dynamic in nature they want the things which are technically superior. $echnology environment is changing. It is age of computer and younger population is very sensitive regarding

technology. )ow every thing is mechanized so younger generation should be offer the technically best. $here are

unlimited

opportunities have to

for

innovations research and

marketing development

organizations

make

budgets. )ow a days the new inventions should be marketed very aggressively markets must be aware of the *overnment rules and regulations regarding safety and wholesome etc. $he younger section of society prefers those goods! which have technological edge over the others. Income distribution also plays an important role in market ma+or parts of younger population is rich. uropean conomies

are industrialized so they can afford the costly goods savings of this group is not much! due to higher spending credit availability in uropean market is higher and consumers

have also higher debt income ratio. Markets must pay attention on ma+or changes in income. ,ost of living interest rates savings and borrowing pattern. #ince younger

population makes more spending on revenue goods so marketing organizations showed concentrate on 'uality

product with more mass and social appeals. It have been observed that the younger generation refers the social and cultural environment it changes according to time! the views of society vary according to the changes in social values and norms. (ounger generation is also influenced by it! so these demand pattern is changing. very change re'uires careful

attention. $he marketing organization must respect the social values. $he life is becoming fast and nuclear family and above lives are increasing at a faster rate. $he

individual needs are determined according to the core and subcultures. $he demand pattern is changing and the

individuals want to use and throw style every marketing organization has to gather information about the preferences of society. (ounger generation is dynamic and wants some change. $he education pattern is also changing! so the life style is shifting towards secondary cultural values. Marketers must understand people-s views of themselves! other

organization society and universe otherwise they cannot cope up with the competition. (ounger generation prefers the goods! which are uni'ue in colour and design. Fa !"3: It is the most important consumer organization. $he

buying behaviour of younger generation is influenced by the family traditions and customs. .rom /arents a person

ac'uires an orientation towards politics! economics! personal ambition and love. Marketing organization have to

concentrate towards composition of family. $he younger generation prefers the goods! which can satisfy multi

demands for e.g.! a cell phone! which can perform various functions including games and internet services. )ewly

married couples have the highest purchase rate of durable goods.

0achelors opinion

have

financial prefers

burdens goods

but

they are

are

fashion

leaders

which

entertainment

oriented and by basic home e'uipment furniture and cars. L!/e St3"e: $he pattern of demand is also influenced by life style marketing organization has to analyse the consumer-s life style. $he younger generation is practical and favour only products with a practical and functional purposes and the demand made by them is uncertain favour stylish products that evaluate the purchase of those with greater material wealth. $he analysis of lifestyle have helped

1olkswagin formula its marketing strategy. It is the fourth largest car manufacturer and largest car produce in urope

having %2& market share. It had pushed ahead with its plan for the launch of an environmentally safer car. $he new model was launched in %334 at .rankfurt 5uto #how. It has been felt that the car was re'uired in order to protect the environment and was given good response by regulatory bodies and uropean consumers! especially *ermany!

#witzerland! 5ustria are environment sensitive so the car was successful. $he company has also introduced recyclable material parts and component! lighter weight and alternative fuels such as natural gas! solar power and hydrogen. $he patter of lifestyle of younger generation of population is different so they want such goods and services which are helpful in improvement of personality.

4%351o"og!5a" In/"uen5e%: It is made of four psychological factors like Motivation! perception! learning and attitude. In changing environment the marketing organize have to

analyse carefully the psychological factors. $he motivation is an important factor and for every segment of younger generation different strategies should be adopted. It has been observed that housewives are frustrated in super6 market shopping and sometimes irritations provoked by the instore environment such narrow aisles. $he younger

generation is very choosy so for the motivation. $heir various types of needs must by satisfied. $he ma+or factor is the method of motivation and its long term effect. $he newage customers have not habitual buying behaviour and the variety. #eeking behaviour of them makes the pattern more complex. ,ustomers buy benefits but not the products so the simple formula to ensure the consumer satisfaction is they must be provided differential benefits. $he consumer demand changes due to various attributes like the reliability! service backup and a range of additional uses. Marketing organizations had to analyse changes in buyer-s expectations and their loyalty. 5ll the details regarding consumer-s

decision making process! time of demand etc. must be analysed. Marketing research should be a continuous process and whenever there is any change the marketers must change their strategy.

Bu!"$!ng

Re"at!on%1!6

7!t1

Cu%to

er%:

7ue

to

development of information technology the consumers are always in touch with each other so if there is any

dissatisfaction then it will cost too much to the marketers. $he dissatisfied customers shall be encouraged and assisted to complain and complaint must be resolved to the customer complete satisfaction! were customers remain dissatisfied the implications are significant because not only they fail to buy again and they will not keep mum about their

experience. 5 dissatisfied will tell ten people about his experience approximately %4& of the dissatisfied customers will tell upto 89 people and like this the demand of goods will decrease. $he strategy of marketing should be made in such a way so that the appropriate relationship with

customers can be maintained for a long period especially younger generation of the population is more sensitive towards its complaints and every marketer has to satisfy the customers as much as possible. 4o"!t!5a" En8!ron ent: $he market decisions are also

influenced by political and legal environment. $he restrictive trade practices! protection to society It is at large from that

irresponsible marketing

business

behaviour. must be

important of the

organization

aware

current uropean

legislation and must be alert for future changes. In

countries the *overnments are sensitive towards protection of consumers. very marketing organization has to follow

the legal system although consumer is treated as king but the government body has the legal power so all the present laws and future changes must be kept in mind. $he

organizations! which are dealing in food items must be careful and the wholesomeness is an important factor. $he food items must be hygiene and should be provided to customers in ready to use method. $he marketing

organization has to maintain the international 'uality of goods. $he advertisement should be social friendly and not against the culture of society. 4ro$u5t D!//erent!at!on: Only the product can stay in the market! which has 'uality and reliability. specially the

younger generation wants 'uality so marketing organization has to meet the challenge of 'uality! which is possible by good operational management. In urope the younger

generation is 'uality sensitive and are ready to pay higher prices for good 'uality products. $otal :uality Management is necessary for the longevity of the product. $he

competition is rising. $he Marketing organization has to keep a watch on changing pattern of consumers and re'uire changes in 'uality should be made. $he 'uality oriented goods can make mass market for themselves ;evi-s has introduced the new market concept through personalized clothing work and it has targeted the customers who are fashion oriented. In the future the :uality of different goods will change due to change in lifestyle! education etc. $he

future changes can be observed by market survey based upon the consumer-s in'uiry and personal survey. $he Marketing Organization should advertise the product and brand instead of their own names. 0rand value is an important factor because it leads to the product

differentiation which is need of the time and can be created only through excellent 'uality. .uture marketing strategy must be based upon the future 'uality re'uirements

otherwise the product and organization will have to leave the market. In coming years! competition will increase and even international organizations will come and will increase the degree of competition. Marketing research department

should be always at work and should find out the future trends. Co 6et!t!8e Strateg3: very marketing organization will

try to increase its market share for younger generation and will try to attract through pricing! advertising and other strategies. ,ost competitiveness can provide good pricing policy. $he younger generation has budget constraints

especially the school and college going students! so price is an important factor. $he sophisticated trend of younger generation demands may create problems. In future the multinationals may also try to capture the market since younger generation is not so mature so it may try for lower priced goods. #o marketing organizations have to achieve all types of economics of scale because of vertical and

horizontal integration the size of the firm is becoming large and getting maximum external and internal economies of scale. #o in future every marketing organization has to cut the cost but not at the cost of 'uality. )o compromise should be made with 'uality. $he marketing strategy must be flexible so that future changes can be incorporated. ,hannel strategy in changing marketing environment. $he channel selection is an important factor. $he long

distribution channel will take more time and will be costly so the company should promote the shortest possible channel. $he concept of direct marketing is more important because it will have two6way communication! although it re'uires a large number of sale person but it is the most effective way of distribution. 7irect marketing is an attractive way and it is also affected by the concept of emotional touch. $he younger generation has more dynamism adaptability. $he future changes and demand pattern of younger

generation will depend upon the change in taste! fashion and habit. $he younger generation is sensitive towards fashion. $he fashion changes so marketing organization has to

incorporate the marketing strategy according to the fashion! which has no specific pattern. #ometimes younger

generation comes back to the traditional style. In future the younger generation will be more aggressive towards the selection of food and clothing since the plastic money is coming into the market which is influencing the consumption

pattern.

#o

marketing organization has

to analyse the

method of payment and maximum preference should be give to the internal and external factors like the cost of delivery! timing of delivery and relationship with customers. $he changing environment is more significant for marketers. very product has a particular life cycle so the marketing organization must prepare long term plans. It is the age of technology so the new goods will replace the old and the marketers have to offer new products. $he science has changed the lifestyle and national boundaries have been demarketed. $he younger generation gives preference to the new things and in changing marketing environment only those product can stay! which have technical superiority and uni'ue style. A$8ert!%e ent: It is the process by which the demand of

product can be increased. $he marketer informs to the potential customers. $he advertising provides marketing support services. If the advertising is not appropriate then the customers cannot be attracted. $he advertising must have an appeal to attract the customers. )ow a days the advertisement pattern also has been changed. very

company gives attractive advertisement. It must have an emotional tough and long term impact. It should also be social friendly and should be targeted towards the customers in such away so that the customers can feel the relationship with the product. $he media of advertisement should be

efficient and have mass appeal. (ounger generation likes television! through internet so advertisement In future the should be given in

these

medias.

development

information and technology will take place so the Marketing organization has to shift its advertisement strategy. $he advertisement should be slogan based and the colour

combination! selection of model etc.! should be attracted. It should not be too much long and boring. $he advertisement strategy should be changed from time to time.

,ommunication cost should be reasonable. 5lthough it is difficult to evaluate advertising there are marketing research agencies which are specialized in the advertising campaign. ,ontinuous campaign will increase the market share.

,ommunication efficiencies! research should focus on testing proposed attention. advertisement .or example for in the the 'uality case of of impact a and

magazine

advertisement a dummy magazine may be passed among the readers who are asked to say! which advertisement they can remember and the testing of communication media. $he younger generation can be taken into confidence by honest advertisement. $he marketing organization has to prepare matrix related with various internal and external factors. $he comparative study of the competitors can be shown as below.

$he comparative Matrix based upon the internal and external factor of the organization.
#uccess factors <eight =ating <eighted score 5nalysis of sales <eight =ating <eighted #core

performance #trategic location

of facilities /laning /rocess ,ompetitors remuneration employees 5sset =atio ,ontrolling /rocess /rocess $echnical 5spect 5nalysis of market segment /attern )ational Income /attern Inflation mployment Market #hare /rice ,ompetitiveness .inancial /osition :uality ,ustomers ;oyalty of of performing to

$he planning process of the marketing organization must be in co6ordinated way any type of changes in demand pattern should be analysed 'uickly so all the departments must be in touch and 'uick decision process will enable the company to meet the competition. $he marketing research department should take following steps in order to meet the future challenges. %. 5 regular seminar of all departmental heads should be organized and views should be interchanged and if there is any specific proposal from any department then it should be incorporated in marketing strategy. 8. Marketing organization must start a customer direct

contact programme so that the customer views and what change they want in the product must be carefully noted. $he market survey should be a regular process and every consumer and the segment of the market should be given e'ual importance. $he 'uick disposal of customer-s

complaint is necessary and every customer should be taken into confidence. $he direct contact with customers will enable the marketing organization to know the real demand of buyers. 4. ,ompany should adopt proper forecasting techni'ue is desired then help of consultants proper can be of taken the

specialists

can

make

analysis

consumer-s

behaviour and special important shall be given to the

packing of products. .uture forecasting and its practical implementation along with appropriate feedback system is re'uired. If the income level of the younger generation will change then what will be there marginal propensity to consumer must be analyzed. $he customers should be regularity contacted for the feedback. >. 0rand management ? company has to promote the brand so that brand value of the product will be an

advertisement in itself. $he company must realize the importance of brand so brand promotion is necessary in the changing market scene. 7egree of competition will increase. ,onsumers will become more aware so standard practise should be adopted and if there is any variance between standard plan and actual plan that must be corrected immediately plans should be time bound. @. Internal management and policies of the company will also play important role. 5n efficient and professional labour force with good package of remuneration will boost the morale of the employees and they will also cooperate and try to do their best. ;abour turnover should be lower and they must be motivated by providing developed infrastructure. Man is the most dynamic factor so it should be given more importance. A. $he younger section of society is more sensitive towards the technology so the company should always make

regular techni'ue

re'uired in

modifications marketing

in

the

production $he

changing play an

environment. role be in

technology environment superior. In

will so

important product

changing technically

every

must

uropean market the degree of competition

is increasing so company has to evaluate its technical expertise from time to time. (ounger generation is more specific about the branded goods so the marketing organization can become successful only if it can analyze the psychological behaviour %8 of the

consumers in changing economic environment. $he demand pattern cannot be exactly predicted but it is clear that only the marketing organization! which can make demand

forecasting in accurate form will get success. $he science and technology will make the impossible as possible so research and development expenditure has an important say. $he micro economic changes will also play an important role so each an every aspect must be scrutinized and flexibility should be maintained in each and every strategy.

BIBLIOGRA4HY
/rincipals of Marketing /hilips Botler Marketing Management #trategy <ilson and *iligan 0usiness Magazines

$he

conomic $imes and Marketing nvironment! /almer! 5. C

0usiness

Dartley Mc*raw6Dill.