marketing implications of social and cultural environments

Social and cultural environment refers to the formation and change of social structure, social customs and habits, beliefs and values, codes of conduct, lifestyle, cultural traditions, population size and geographical distribution.Any enterprise is in a certain social and cultural environment, and the marketing activities of enterprises are bound to be influenced and restricted by the social and cultural … 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 ourselves in society. Social factors include the cultural implications, the gender and connected demographics, the social lifestyles, the domestic structures. 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. 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. It is important for all businesses, whether old or new, to have state of the art technology. Cultural environment . 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. Free resources to assist you with your university studies! Whilst this is a useful distinction from the broader forces of culture, social class and social factors are clearly influenced by   cultural factors. The Terpstra and Sarathy Cultural Framework helps marketing managers to assess the cultural nature of an international market. (Welfare Quality), New technology creates new markets and new opportunities for businesses. It is widely accepted that you are not born with a culture, and that it is learned. 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 Sensitivity ©2011 Pearson Education, Inc. publishing as Prentice Hall Environmental … A lot of such questions should be satisfied first and these all are necessary to launch a successful product. Demographic segmentation is based on such characteristics as age, gender and occupation. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! Take the example of the family which is an important medium of transmitting cultural values. *You can also browse our support articles here >. Action ability refers to the degree to which a firm can design or develop a product to serve that particular market segment. Social determinants of health are factors that influence where and how people live, learn, work and play. The concentration in this area places the organizations they represent in a situation of missing out on some of the most affluent consumer demographics, namely those who are 45 plus. Cross-cultural understanding, along with local market knowledge, lends itself the production of more effective marketing strategy and materials.For example, high quality and culturally sensitive translations of websites, brochures, and other assets are essential. (James Neblett). 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. In this BusinessZeal article, we will try to understand the impact of social and cultural factors on a business, with the help … Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. Culture factors range from syntax, ideologies, religion, language and dialect, to … Specifically, these are the effects of people and groups influencing one another through culture and subculture, social class, reference groups, and family. Needs can further be translated into wants, as for an instance we can take an example of human feeling of thirst, that is the a need has to be fulfilled in order to stay alive, so to fulfil that need we can have different option starting with tap water, bottled water, a soft drink or may be a water melon. In the social step for these analyses, you have to look carefully at the social changes. In general, consumers … Similarly, the other marketing mix elements like pricing, distribution, after sale service, etc also needs to be based on these socio-cultural factors. The environmental factors in marketing include political, economic, social, technological, environmental and legal factors (PESTEL). 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. 1. social classes and their influence on the society, 2. average disposable income level, 3. wealth of people, 4. economic inequalities, 5. level of education, 6. access to education (free, paid), 7. level and access to health-care, 8. health consciousness in society (smoking, drinking, drug use, safe driving, etc. Differences in languages can alter the intended meaning of a promotional campaign and differences in the way a culture organizes itself socially may affect the way a product is positioned in the market and the benefits a consumer may seek from that product. So an organization when deciding to conduct business in a new country must consider this factor as a critical aspect. 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. For example, a significant proportion of individuals over the age of 50 can be the key deciders of spendings. International Journal of Business and Social Science Vol. The report is based on discussions and briefings on macro … No plagiarism, guaranteed! The report brought together quantitative and qualitative research with extensive analysis of a range of trends affecting families and their finances. “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”. Further, these forces of … In behavioral segmentation, marketers categorize consumers on the basis of their attitudes, uses, or responses to a product. Social-cultural factors concern about demographics changes which organizations should be aware of. Disclaimer: This work has been submitted by a university student. Culture could relate to a country (national culture), a distinct section of the community (sub-culture), or an organization (corporate culture). Culture has several important characteristics: (1) Culture is comprehensive. Changes in our Life Styles and Social Values: For instance, changing role of women, emphasis on quality of goods instead quantity of goods, greater reliance on government, and greater … Wants are basically the goods and services that satisfy anyone’s need and these are continuously changing with changing environment. But environmental and cultural factors also make a difference. 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. The social and cultural environment in marketing, The Political Environment Concept in Marketing, International Human Resource Management (IHRM), Female or Women Entrepreneurship - Definition, Advantages and Disadvantages, Changing Scenario of Advertising Strategies, The demographic and technological environment in marketing. Technology advancements, such as smart … 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. Some other products are specific to family size. Social and cultural factors are important to consider while creating and implementing a marketing strategy of a company. Many companies have sought to develop one core product for a global market, and there is some evidence of firms achieving this (for example Coca Cola, McDonald’s). Demographics include those characteristics of a human population which are used in government, marketing or opinion research. We will discuss here some of them which have the major influence. If you have a website targeted at a North American audience, you would consider different localization strategies for … The findings show that, between 1961 and 2001. Hence, ahead of entering Hence, ahead of entering any new market, or going global, one should understand the global No strategy can be successful and long-term if these factors are ignored. In this paper, we critically review the research literature on (a) social networking technologies and alcohol marketing and (b) online alcohol content on social networks, and then consider implications for public health knowledge and research. Culture It include form of behaviour ,norms, beliefs, values and customs that are shared by a society and are transmitted from one generation to another. So businesses needs some way to group people with similar need or wants togather. For an exchange to take place there must be two parties interested in exchanging something of value against something of value. Study for free with our range of university lectures! (2) Culture is learned rather than being something we are born with. The social and cultural environment in marketing 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. The role of women in society is changing as men and women increasingly share ex- pectations in terms of employment and household responsibilities. The basic concept of Marketing starts with the idea of meeting the needs and wants of the market. A person’s culture is represented by a large group of people with a similar heritage. Some products are gender specified. Market positioning is the process of arranging a product so as to engage the minds of target consumers by placing a differentiating image in the mind of the consumer, by explaining what value your product has and what additional features it has thus making its feature and functions look better and different from the competitors product. So there is need of a marketer to consider all these factors to plan a successful market strategy. A sewing machine in one culture may be seen as a useful hobby but in another culture a sewing machine may be necessary to the survival of a family. Required fields are marked *. Whether such kind of products is already running in the market? We will consider the mechanics of learning later in the … It includes the culture that the individual was educated or lives in, and the people with whom they interact. 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. Once the potential market has been segmented, firms need to position their products relative to similar products of competitors. Customer value = Product Cost – product benefits. Company Registration No: 4964706. It has been argued that basic human needs are universal in nature and, in principle, capable of satisfaction with universally similar solutions. Demographics should be an essential element of marketing. Since the 1970s Professor Geert Hofstede has led pioneering research into cross-border culture differences. Such products and … These dual objectives of many of today’s … Social Environment Social environment of business means all factors which affectsbusiness socially . Businesses affect the societies in which they operate and are, in turn, affected by social and cultural change in those societies. Different tea brands hit different classes. A PESTEL analysis is a useful tool for determining the impact of political, economic, social, technological, environmental and legal factors on the marketing strategies adopted by the business, notes the Professional Academy. Marketer needs to determine those demographic, geographic and other macro environment factors that influence his product and should incorporate these while devising strategies. 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. The environmental forces may affect different parts of the organisation in different ways because different parts interact with their relevant external environment. For example, the technological environment may affect the organization’s R & D department. There has been much discussion recently about the concept of ‘cultural convergence’, referring to an apparent decline in differences between cultures. Culture is the way that we do things around here. Consumers buy products that they believe that will best meet their needs, this believe can be because of the earlier use of the produce which shows the customer retention side of marketing that believes in building a profitable everlasting relationship with the customer which will only result from the value resulting from the exchange process. Language differences can be a challenge for marketers designing IMC campaigns, product labels, brand and product names, tag lines, and so on. (market analysis. The term market is the root word for the word marketing. 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”. Changes in our Life Styles and Social Values: … Chapter 3: Social and Cultural Environment 3.1 Factors Shaping the Global Marketing Environment 3.2 The Social and Cultural Environment 3.3 Importance of Culture on Markets 3.4 What is Culture 3.5 Describing Culture 3.6 Marketing Across Cultures 3. This is particularly so when the product or service is "culture bound". The type and structure of government prevailing in a country decides, promotes, fosters, encourages, shelters, directs, and controls the business of that country. The desire of a subculture in one country to imitate the values of those in another culture has also contributed to cultural convergence. Marketing concept at large relates to a process of different integrated efforts made by the business to satisfy the needs and wants of the customer by creating value in the mind of the customer resulting to a profitable relation. By American Heart Association News (smartboy10, Getty Images) Eating a low-fat diet, getting regular exercise and watching your weight can help lower risk for heart disease and stroke. The way a society is composed, and the manner in which it views itself culturally, plays an important role in the development of a robust marketing strategy. Your email address will not be published. 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. Abstract The paper addresses several marketing implications regarding the 4Ps of the marketing mix as they relate to the emerging market of Vietnam. Technological environment Economic environment. This process is called product positioning. Social and cultural factors affecting business include belief systems and practices, customs, traditions and behaviours of all people in given country, fashion trends and market activities influencing actions and decisions. 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. Culture. The social-cultural component of a macro environment is formed using values, lifestyle, culture, beliefs, and prejudices of the target audience of a business. From the above analysis, it can be realized that the impact of socio cultural elements is so strong that a marketer cannot pass by it. As suggested above, the importance of language differences cannot be overemphasized, and there are nearly three thousand languages in the world. Cultural – The external societal environment and its values, reflect themselves even in the work values and environment. Environment, culture, other social determinants play big role in heart health. Our society is ever changing. (steven R, 2008) The position of a product in the marketplace should be clear, distinctive, and desirable compared to those of its competitors in order for it to be effective. Economic factors have always influenced consumer purchasing. Culture has several important characteristics: (1) Culture is comprehensive. Major social problems, such as anxiety towards growing population, need of safety in different employments, protection to repl… Our society is ever changing. The broad environment is made up of six components: demographic, economic, physical, technological, political-legal, and social-cultural environment. For example, bowing and a strong desire to avoid the loss of face are unified in their manifestation of the importance of respect. This is not an example of the work produced by our Essay Writing Service. Marketing researchers should typically have two objectives in this regard: first to determine what segments or subgroups exist in the overall population; and secondly to create a clear and complete picture of the characteristics of a typical member of each of these segments. 1st Jan 1970 Marketing Thus, they assume that a firm's performance depends on the qualities of it personnel rather than a firm's social, cultural and environmental influences. The Impact of Cultural Values on Marketing Ethics July 11, 2014 A single marketing message cannot be expected to work in multiple territories due to cultural and ethical differences. Social Environment Defined. 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. When a company decides to launch a product, it must keep in mind what is the product and what the target population should be. (AMA 2007). For an effective segment, it has to be measurable, accessible, substantial, and actionable. These characteristics consist of demographic, geographic, psychographic, and behavioral factors that are the basis for segmentation. Businesses are … For sustaining in market, seller and marketer should be up-to-date with the changing environment and should adapt accordingly. 1. However, all of them study the social factors. The social environment of a business consists of all that a society believes, its customs, its practices and it’s the way it behaves. In context to socio cultural environment, we have number of different factors that affect marketing and cause periodical change in marketing techniques. According to time, new demands are created and old demands are extinguished. Individual needs revolve around aspirations for understanding, knowledge and self-expression, through items such as clothing choices. This is nothing new. 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. These may include: Human resources - expectations within society about patterns of employment and working conditions will affect the firm's organisation. Market refers to the location where exchanges between buyers and sellers occur. Age is another factor which tended to introduce energy drinks for children and youngsters. The difference between these factors in different parts of the world can be a central consideration in developing and implanting international marketing strategies. 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