Mm environment

ANALYZING THE ANALYZING THE MACROENVIRONMENTMACROENVIRONMENT

Environmental Forces

Demographic

EconomicPolitical-Legal

Socio-CulturalTechnological

Natural

DEMOGRAPHIC ENVIRONMENT

The main demographic force – Population…. Why?????


The main demographic force – Population…. because people make up markets

Refer: www.geohive.com

Population Size:World : Malaysia :




Population Size:World : 6.49 billions (2005)Malaysia : 25.35 millions (2005)

World’s Top 5:?????





World’s Top 5:1. ?2. ?3. ?4. ?5. Brazil





World’s Top 5:1. ?2. ?3. ?4. Indonesia5. Brazil





World’s Top 5:1. ?l2. ?3. USA4. Indonesia5. Brazil





World’s Top 5:1. ?2. India – 1.1 bil3. USA4. Indonesia5. Brazil





World’s Top 5:1. China – 1.3 bil2. India – 1.1 bil3. USA4. Indonesia5. Brazil

DEMOGRAPHICS

GENDER:

MALAYSIA (2004)Male :Female :

DEMOGRAPHICS

GENDER:

MALAYSIA (2005)Male : 52.8 %Female : 47.2 %

DEMOGRAPHICS

GENDER:


“ ??? “Straight urban men who enjoy such things as shopping

and using grooming products and services

DEMOGRAPHICS

GENDER:


MetrosexualStraight urban men who enjoy such things as shopping

and using grooming products and services

BABY BOOMERS- Born after the WW2 (1946) – 1964- 42 - 60 yrs old (2006)

BABY BOOMERS- Born after the WW2 (1946) – 1964- 42 - 60 yrs old (2006)- Created sexual revolution- 1/3 of the population- The boomers have evolved from the

“youthquake generation” to “backache genaration”

- Slowing up, settling down and raising children.

- Reaching their peak earning and spending years.

- Consumption Patterns:- * ?- * ?- * ?- * ?- * ?





- Consumption Patterns:- * ?- * ?- * ?- * ?- * ?





- Consumption Patterns:- * lots of bungalow coming up- * MPVs- * travel- * health foods & equipments- * investments & financial products

GENERATION Xers - 1965 – 1976- 30 – 41 year (2006)- They lie in the shadow of the boomers and lack obvious distinguishing characteristics.- Lived in the age of AIDS

GENERATION Xers - 1965 – 1976- 30 – 41 year (2006)- They lie in the shadow of the boomers and lack obvious distinguishing characteristics.- Lived in the age of AIDS- Having grown up during times of recession & corporate downsizing, they have developed a more cautious economic outlook – savvy shoppers and value conscious, prefer a more functional look.- They care about environment – respond favorably to socially responsible companies.- Want better quality of life, more interested in job satisfaction- Consumption patterns: * ? * ? * ?

GENERATION Xers - 1965 – 1976- 30 – 41 year (2006)- They lie in the shadow of the boomers and lack obvious distinguishing characteristics.- Lived in the age of AIDS- Having grown up during times of recession & corporate downsizing, they have developed a more cautious economic outlook – savvy shoppers and value conscious, prefer a more functional look.- They care about environment – respond favorably to socially responsible companies.- Want better quality of life, more interested in job satisfaction- Consumption patterns: * Condos * Solid compact/small car – Kancil/Jazz * Foreign movie (Baby Boomers: local movie)

BABY BOOMLET- Born 1977 – 1994- 12 – 29 years (2006)- Big teenage market (almost equal to

boomers)


boomers)- Still forming its buying preferences/

behaviors- Lived in the era of IT- Consumption patterns: * ? * ? * ? * ?


boomers)- Still forming its buying preferences/

behaviors- Lived in the era of IT- Consumption patterns: * lots of private colleges * lots of small cars–etos, savvy, myvi * kids/teenage specialty store - Toy R Us , Maggi T * Animation movies

ECONOMICS ENVIRONMENTS

Market require purchasing power.

The available purchasing power depends on:?????

ECONOMICS ENVIRONMENTS

Market require purchasing power.

The available purchasing power depends on: current income, prices, savings, debt, credit availability

Should increase credit availability

SOCIAL-CULTURAL ENVIRONMENT

Society shapes the beliefs, values and norms thatlargely define tastes and preferences

People absorb, almost unconsciously, a worldview that defines their relationships to themselves, to others, to organizations, to society, to nature, and to the universe.

The people living in a particular society hold many core beliefs and values that tend to persist.- Core values are passed on from parents to children and reinforced by major social institutions Ex; achievement, marriage

Secondary beliefs/values are more open to changeEx; believing in the institution of marriage is a core belief; believing that people ought to get married early is a secondary belief.

Natural Environment

Shortage of raw materials

Increasedenergy costs

Anti-pollutionpressures

3 MAIN TRENDS:

Oil, forests, coal, platinum etc.

Oil prices shot up to over $55 -Alternative forms of energy: solar, nuclear, wind etc. -Practical combination vehicle such as Toyota Prius (Car of the Year 2004)

A large market has been created for Pollution-control solutions

TECHNOLOGICAL ENVIRONMENT

One of the most dramatic forces shaping people’s live

Every new technology is a force for “creative destruction.

Ex, ???

TECHNOLOGICAL ENVIRONMENT

One of the most dramatic forces shaping people’s live

Every new technology is a force for “creative destruction.

Ex, PCs hurt typewriters, CDs

hurt carthridge, LCDs hurt OHP

Technological innovation creates new market opportunities

POLITICAL-LEGAL ENVIRONMENTComposed of laws, government agencies,

andpressure groups that influence and limit various organizations and individuals.

Negative Implication: Limit marketing efforts - ? - ?

Positive Implication: Reduce competitions - ?

POLITICAL-LEGAL ENVIRONMENTComposed of laws, government agencies,

andpressure groups that influence and limit various organizations and individuals.

Negative Implication: Limit marketing efforts - halal/haram logos - no cigarettes adv

Positive Implication: Reduce competitions - no direct comparison with competitor’s brand

Technology

Mm environment