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ORCES IN THE RETAILERS MACRO ENVIRONMENT
Posted: Jul 04, 2009 |Comments: 0 | Views: 6,122 |
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FORCES IN THE RETAILERS MACRO ENVIRONMENT
Various elements such as demographic, legal, social, economic and technological variables affect an organisation and its marketing efforts. It is now recognized by all that even a well concerned marketing plan may fail if adversely influenced by uncontrollable factors (demographic, legal etc.). Therefore the external macro environment must be continually monitored and its effects incorporated into Retailer's marketing plans.
The External Environment of Retail Marketing
Demographic Environment
Technological Environment
Social Environment
Political / Legal Environment
Economic Environment
DEMOGRAPHICENVIRONMENT
The first environmental fact of interest to retailers is population because people make up markets. Retailers are keenly interested in the size of the population, its geographical distribution, density, mobility trends, age distribution and social ethnic and religious structure.
Demographic structure is seldom static for long and changes in its composition often test the residency of a marketing firm. Further, these changes influence the behaviour of consumers which, in turn, will have a direct impact in the retailer's business. The ripples of these changes will reach the organisation forcing it to alter or amend the existing marketing practices in vogue. In short, Retail firms, will have to continuously measure the changes - qualitative as well as quantitative - that are taking place in the population structure. To avoid negative consequences brought on by active consumer groups, a retailer must communicate with consumers, anticipate
problems, respond to complaints and make sure that the firm operates properly.
POLITICAL / LEGAL ENVIRONMENT
Retail marketing decisions are substantially impacted by developments in the political / legal environment. This environment is composed of laws, government agencies...