marketing implications of social and cultural environments

According to Philip Kotler, “A company’s marketing environment consists of the internal factors & forces, which affect the company’s ability to develop & maintain successful transactions & relationships with the company’s target customers”. The premise that the customer is king and that the customer is always right … For an effective segment, it has to be measurable, accessible, substantial, and actionable. If you need assistance with writing your essay, our professional essay writing service is here to help! It will impact not only the work environment of its local office there but also have implications on the business operations, sales, clients and employees who become a part of … We conclude that social networking systems are positive and pleasurable for young people, but are likely to contribute to pro-alcohol environments and … Different tea brands hit different classes. Socio-cultural forces usually influence the welfare of a business firm in the long-run. Since the 1970s Professor Geert Hofstede has led pioneering research into cross-border culture differences. Disclaimer: This work has been submitted by a university student. Cultural Factors. Potential marketing implications among employees include higher morale and greater commitment to a company when sales are favorable and the company has a good reputation. For example Animal Welfare, For a long time legislation has been the commonest way of protecting farm animal welfare but more recently growing consumer demand both for quality food products and more ethical food production has meant that farm animal welfare is emerging as an area of potential added value for producers, retailers and other food chain actors. The idea of culture is vital to understanding the implications for translation and, despite the differences of opinion as to whether language is a part of culture or not, the two are connected. The broad environment is made up of six components: demographic, economic, physical, technological, political-legal, and social-cultural environment. The environment-organisation interaction has a number of implications from strategic management point of view. These are cultural, political and legal environments and the role each one plays. Culture represents the living style of the people of a specific area, the buying behavior, the taste, the class of people to which they belong; the psychographics and the aesthetics of the population. New technology as cited in Develop Vision and Strategy (n.d.) can change the demand for a product, render current manufacturing processes obsolete, and reduce costs to undercut competitors, produce new products and a host of other possibilities. Social-cultural factors concern about demographics changes which organizations should be aware of. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of Social and cultural factors are important to consider while creating and implementing a marketing strategy of a company. Businesses are … Culture could relate to a country (national culture), a distinct section of the community (sub-culture), or an organization (corporate culture). Differences in social conditions, religion and culture can all affect consumers’ perceptions and … Changes in lifestyles and social values. According to time, new demands are created and old demands are extinguished. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on Measurability is measuring the market segment’s size and its purchasing power. So a marketer must keep in mind the cultural factor to adopt a wise market plan. Such products and … Culture exerts a strong influence on a person’s needs and wants because it is through culture that we learn how to live, what to value, and how to conduct … Entrepreneurs all over the world seek ways of introducing their products to international markets; unfortunately, the international marketing environment poses a lot of opportunities and threats to foreign entrants. Our academic experts are ready and waiting to assist with any writing project you may have. Social-Cultural environment Advertisements and culture Some ads are banned on TVs Festivals like Ganesh festival, Diwali, Id- Milad, Christmas, Dress styles are different School uniforms Dr.S.G.Kulkarni 35 36. For an Exchange to occurs an individual receives a product from a seller in return for something called consideration (something of value). Marketing has to track down any changes in the need and wants of the groups which may point to decrease or increase in demand for a new product, this concept leads to product innovation for example a cultural change towards greater concern for health and fitness has created new opportunities for low calorie foods, exercise equipment and health clubs. Children learn about their society and culture through many means but the family influence is strong particularly during the early years of a Child’s life. Education is also a variable for shaping up decision making process. Social Environment Definition. Other factors you should assess are political, economic, technological, environmental, ethical, and legal. Social and cultural factors influence all aspects of consumer and buyer behavior. Take the example of the family which is an important medium of transmitting cultural values. A lot of such questions should be satisfied first and these all are necessary to launch a successful product. The external environment, or macro environment, is made of forces that organizations can't control. No plagiarism, guaranteed! So, culture includes all that we have The social/cultural environment. Socio-cultural factors play a major role in the marketing strategy of a business. For example, two decades back, people wanted phone just for communication purposes then they wanted a mobile phone but these days technology has so much influenced them that they want a mobile phone with camera, Bluetooth, 3gs and other innovative features. Our society is ever changing. These may include: Human resources - expectations within society about patterns of employment and working conditions will affect the firm's organisation. 3. Social Environment Social environment of business means all factors which affectsbusiness socially . This means that all parts must fit together in some logical fashion. It includes the culture that the individual was educated or lives in, and the people with whom they interact. Learn how your comment data is processed. Potential marketing implications among employees include higher morale and greater commitment to a company when sales are favorable and the company has a good reputation. Similarly, the other marketing mix elements like pricing, distribution, after sale service, etc also needs to be based on these socio-cultural factors. Word-of-mouth can be a powerful pressure on buying behavior, and marketing strategies are designed to influence word-of-mouth. Social factors include the cultural implications, the gender and connected demographics, the social lifestyles, the domestic structures. Culture has several important characteristics: (1) Culture is comprehensive. Benefit: Cultural sensitivity, insight, and local knowledge means higher quality, targeted marketing. What is their purchasing behavior? How Social Responsibility in Marketing Works . Hence, ahead of entering Hence, ahead of entering any new market, or going global, one should understand the global The social environment of a business consists of all that a society believes, its customs, its practices and it’s the way it behaves. 2; February 2016 1 A Study of Vietnam and its Marketing Implications ... School of Business Saint Bonaventure, NY 14778, USA. Company Registration No: 4964706. What is the taste of people? American Marketing Association defines marketing as, Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. This article will study, 1) understanding business ethics and socially responsible marketing, 2) developing and implementing a socially responsible marketing plan, 3) main … Advertisements. The cultural environment consists of the influence of religious, family, educational, and social systems in the marketing system. Needs are the basic requirements of customers. Some indication of the minutiae of changing life-styles and their implications for marketing was revealed in a report, Complicated Lives II: The Price of Complexity [06], commissioned by Abbey National from the Future Foundation. The social-cultural environment varies from one region to another region. The environmental factors in marketing include political, economic, social, technological, environmental and legal factors (PESTEL). All the effort is for the customers, then why not it be the products of customer choice which can be made possible only by knowing the customer in a better way. Social and Cultural Environment. At the same time, men marginally increased their time in the kitchen, from 26 to 27 minutes per day. The authors realized the importance of being flexible in cultural values in the current environment of todays economy. Marketing implications also apply to the overall health of a business since greater customer satisfaction and increased sales lead to higher production and more profit. It is very straight-forward, and uses eight categories in its analysis. advertising, culture, marketing communication strategy Abstract The thesis topic is decided based upon the preference, experience, interest and background of the authors. “A company’s marketing environment consists of the actors and forces outside of marketing that affect marketing management ability to build and maintain successful relationships with target customers”. People living in one area might prefer a different type of product than the preference of the product of the people of any other region. Market refers to the location where exchanges between buyers and sellers occur. The nature of work relation- ships can affect companies profits; for example, the dotcom bubble and dress-down Friday had a calamitous impact on the formal clothing retailer Moss Bros’ fortunes as consumers’ attitudes to work changed. Marketing - Marketing - Economic and social aspects of marketing: Sometimes criticized for its impact on personal economic and social well-being, marketing has been said to affect not only individual consumers but also society as a whole. Every business works in a society , so societies different factors like family , educational institutions and religionaffects business . VAT Registration No: 842417633. Though the pursuit of social responsibility and ethical marketing does not automatically translate into increased profit, it is still the responsibility of the firm to ensure it is responsible for its actions and their impact on society. For example, bowing and a strong desire to avoid the loss of face are unified in their manifestation of the importance of respect. Economic factors have always influenced consumer purchasing. In behavioral segmentation, marketers categorize consumers on the basis of their attitudes, uses, or responses to a product. Marketing Implications Cultural factors must be considered when marketing consumer and industrial products Environmental sensitivity reflects the extent to which products must be adapted to the culture-specific needs of different national markets ©2011 Pearson Education, Inc. publishing as Prentice Hall Environmental issues play an important role in the marketing of an organization. Demographic segmentation is based on such characteristics as age, gender and occupation. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. Recyclable packaging, promotions that spread awareness of societal issues and problems, and directing portions of … Social factors include the cultural implications, the gender and connected demographics, the social lifestyles, the domestic structures. It is considered as the most popular and comparatively easy way to identify potential customers. This means that all parts must fit together in some logical fashion. It is crucial for marketers to fully appreciate the cultural values of a society, especially where an organization is seeking to do business in a country that is quite different to its own. Physical needs are the basic needs that are required for the survival for example food, water, sunlight, clothing and safety. Leisure is becoming a bigger part of many people’s lives, and marketers have responded with a wide range of leisure related goods and services. The idea of culture is vital to understanding the implications for translation and, despite the differences of opinion as to whether language is a part of culture or not, the two are connected. Social Environment Defined. If we talk about Nokia mobile phones, the market plan of the brand is based on different factors; one is income level of people. (AMA 2007). Once the potential market has been segmented, firms need to position their products relative to similar products of competitors. The environmental forces may affect different parts of the organisation in different ways because different parts interact with their relevant external environment. Businesses in order to better manage the marketing effort and to satisfy the needs and wants of customers, many companies place the consumers into groups such groups where the potential customers are categorized based on different needs, characteristics, or behaviors. Social determinants of health are factors that influence where and how people live, learn, work and play. It is essential for the marketing management that is should prepare the marketing plans according to the changing needs of the society thereby Satisfy new growing needs. Three aspects may be noted in the current socio-economic philosophy: 1. Required fields are marked *. As suggested above, the importance of language differences cannot be overemphasized, and there are nearly three thousand languages in the world. Examples of marketing responses include cars designed to meet the aspirational needs of career women and ready prepared meals, which relieve working women of their traditional role in preparing household meals. Demographics include those characteristics of a human population which are used in government, marketing or opinion research. 2008). 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