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ANALYZING THEANALYZING THE
MACROENVIRONMENTMACROENVIRONMENT
Environmental Forces
Demographic
EconomicPolitical-Legal
Socio-CulturalTechnological
Natural
DEMOGRAPHIC ENVIRONMENT
The main demographic force
– Population….
Why?????
DEMOGRAPHIC ENVIRONMENT
The main demographic force
– Population….
because people make up markets
Refer: www.geohive.com
Population Size:
World :
Malaysia :
DEMOGRAPHIC ENVIRONMENT
The main demographic force
– Population….
because people make up markets
Refer: www.geohive.com
Population Size:
World : 6.49 billions (2005)
Malaysia : 25.35 millions (2005)
World’s Top 5:
?
?
?
?
?
DEMOGRAPHIC ENVIRONMENT
The main demographic force
– Population….
because people make up markets
Refer: www.geohive.com
Population Size:
World : 6.49 billions (2005)
Malaysia : 25.35 millions (2005)
World’s Top 5:
1. ?
2. ?
3. ?
4. ?
5. Brazil
DEMOGRAPHIC ENVIRONMENT
The main demographic force
– Population….
because people make up markets
Refer: www.geohive.com
Population Size:
World : 6.49 billions (2005)
Malaysia : 25.35 millions (2005)
World’s Top 5:
1. ?
2. ?
3. ?
4. Indonesia
5. Brazil
DEMOGRAPHIC ENVIRONMENT
The main demographic force
– Population….
because people make up markets
Refer: www.geohive.com
Population Size:
World : 6.49 billions (2005)
Malaysia : 25.35 millions (2005)
World’s Top 5:
1. ?l
2. ?
3. USA
4. Indonesia
5. Brazil
DEMOGRAPHIC ENVIRONMENT
The main demographic force
– Population….
because people make up markets
Refer: www.geohive.com
Population Size:
World : 6.49 billions (2005)
Malaysia : 25.35 millions (2005)
World’s Top 5:
1. ?
2. India – 1.1 bil
3. USA
4. Indonesia
5. Brazil
DEMOGRAPHIC ENVIRONMENT
The main demographic force
– Population….
because people make up markets
Refer: www.geohive.com
Population Size:
World : 6.49 billions (2005)
Malaysia : 25.35 millions (2005)
World’s Top 5:
1. China – 1.3 bil
2. India – 1.1 bil
3. USA
4. Indonesia
5. Brazil
DEMOGRAPHICS
GENDER:
MALAYSIA (2004)
Male :
Female :
DEMOGRAPHICS
GENDER:
MALAYSIA (2005)
Male : 52.8 %
Female : 47.2 %
DEMOGRAPHICS
GENDER:
MALAYSIA (2005)
Male : 52.8 %
Female : 47.2 %
“ ??? “
Straight urban men who enjoy such things as shopping
and using grooming products and services
DEMOGRAPHICS
GENDER:
MALAYSIA (2005)
Male : 52.8 %
Female : 47.2 %
Metrosexual
Straight 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:
- * ?
- * ?
- * ?
- * ?
- * ?
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:
- * ?
- * ?
- * ?
- * ?
- * ?
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:
- * 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)
BABY BOOMLET
- Born 1977 – 1994
- 12 – 29 years (2006)
- Big teenage market (almost equal to
boomers)
- Still forming its buying preferences/
behaviors
- Lived in the era of IT
- Consumption patterns:
* ?
* ?
* ?
* ?
BABY BOOMLET
- Born 1977 – 1994
- 12 – 29 years (2006)
- Big teenage market (almost equal to
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 that
largely 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 change
Ex; 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
Increased
energy costs
Anti-pollution
pressures
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 ENVIRONMENT
Composed of laws, government agencies,
and
pressure groups that influence and limit
various organizations and individuals.
Negative Implication: Limit marketing efforts
- ?
- ?
Positive Implication: Reduce competitions
- ?
POLITICAL-LEGAL ENVIRONMENT
Composed of laws, government agencies,
and
pressure 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

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Mm environment

  • 3. DEMOGRAPHIC ENVIRONMENT The main demographic force – Population…. Why?????
  • 4. DEMOGRAPHIC ENVIRONMENT The main demographic force – Population…. because people make up markets Refer: www.geohive.com Population Size: World : Malaysia :
  • 5. DEMOGRAPHIC ENVIRONMENT The main demographic force – Population…. because people make up markets Refer: www.geohive.com Population Size: World : 6.49 billions (2005) Malaysia : 25.35 millions (2005) World’s Top 5: ? ? ? ? ?
  • 6. DEMOGRAPHIC ENVIRONMENT The main demographic force – Population…. because people make up markets Refer: www.geohive.com Population Size: World : 6.49 billions (2005) Malaysia : 25.35 millions (2005) World’s Top 5: 1. ? 2. ? 3. ? 4. ? 5. Brazil
  • 7. DEMOGRAPHIC ENVIRONMENT The main demographic force – Population…. because people make up markets Refer: www.geohive.com Population Size: World : 6.49 billions (2005) Malaysia : 25.35 millions (2005) World’s Top 5: 1. ? 2. ? 3. ? 4. Indonesia 5. Brazil
  • 8. DEMOGRAPHIC ENVIRONMENT The main demographic force – Population…. because people make up markets Refer: www.geohive.com Population Size: World : 6.49 billions (2005) Malaysia : 25.35 millions (2005) World’s Top 5: 1. ?l 2. ? 3. USA 4. Indonesia 5. Brazil
  • 9. DEMOGRAPHIC ENVIRONMENT The main demographic force – Population…. because people make up markets Refer: www.geohive.com Population Size: World : 6.49 billions (2005) Malaysia : 25.35 millions (2005) World’s Top 5: 1. ? 2. India – 1.1 bil 3. USA 4. Indonesia 5. Brazil
  • 10. DEMOGRAPHIC ENVIRONMENT The main demographic force – Population…. because people make up markets Refer: www.geohive.com Population Size: World : 6.49 billions (2005) Malaysia : 25.35 millions (2005) World’s Top 5: 1. China – 1.3 bil 2. India – 1.1 bil 3. USA 4. Indonesia 5. Brazil
  • 13. DEMOGRAPHICS GENDER: MALAYSIA (2005) Male : 52.8 % Female : 47.2 % “ ??? “ Straight urban men who enjoy such things as shopping and using grooming products and services
  • 14. DEMOGRAPHICS GENDER: MALAYSIA (2005) Male : 52.8 % Female : 47.2 % Metrosexual Straight urban men who enjoy such things as shopping and using grooming products and services
  • 15. BABY BOOMERS - Born after the WW2 (1946) – 1964 - 42 - 60 yrs old (2006)
  • 16. 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: - * ? - * ? - * ? - * ? - * ?
  • 17. 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: - * ? - * ? - * ? - * ? - * ?
  • 18. 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: - * lots of bungalow coming up - * MPVs - * travel - * health foods & equipments - * investments & financial products
  • 19. 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
  • 20. 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: * ? * ? * ?
  • 21. 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)
  • 22. BABY BOOMLET - Born 1977 – 1994 - 12 – 29 years (2006) - Big teenage market (almost equal to boomers)
  • 23. BABY BOOMLET - Born 1977 – 1994 - 12 – 29 years (2006) - Big teenage market (almost equal to boomers) - Still forming its buying preferences/ behaviors - Lived in the era of IT - Consumption patterns: * ? * ? * ? * ?
  • 24. BABY BOOMLET - Born 1977 – 1994 - 12 – 29 years (2006) - Big teenage market (almost equal to 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
  • 25. ECONOMICS ENVIRONMENTS Market require purchasing power. The available purchasing power depends on: ? ? ? ? ?
  • 26. ECONOMICS ENVIRONMENTS Market require purchasing power. The available purchasing power depends on: current income, prices, savings, debt, credit availability Should increase credit availability
  • 27. SOCIAL-CULTURAL ENVIRONMENT Society shapes the beliefs, values and norms that largely 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 change Ex; believing in the institution of marriage is a core belief; believing that people ought to get married early is a secondary belief.
  • 28. Natural Environment Shortage of raw materials Increased energy costs Anti-pollution pressures 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
  • 29. TECHNOLOGICAL ENVIRONMENT One of the most dramatic forces shaping people’s live Every new technology is a force for “creative destruction. Ex, ???
  • 30. 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
  • 31. POLITICAL-LEGAL ENVIRONMENT Composed of laws, government agencies, and pressure groups that influence and limit various organizations and individuals. Negative Implication: Limit marketing efforts - ? - ? Positive Implication: Reduce competitions - ?
  • 32. POLITICAL-LEGAL ENVIRONMENT Composed of laws, government agencies, and pressure 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