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- Global Forces and the Advertising Industry
- Growth of advertising spending worldwide 2000-2022
- caso Global forces and the advertising industry (2) _ caso.pdf
The company is not alone in its business environment. It is surrounded by and operates in a larger context. This context is called the Macro Environment.
It consists of all the forces that shape opportunities, but also pose threats to the company. The Macro Environment consists of 6 different forces. Demographic forces relate to people. The name refers to the term Demography.
The latter refers to the study of human populations. This includes size, density, age, gender, occupation and other statistics. Why are people important? Because, on the whole, their needs is the reason for businesses to exist. In other words, people are the driving force for the development of markets. The large and diverse demographics both offer opportunities but also challenges for businesses. Especially in times of rapid world population growth, and overall demographic changes, the study of people is crucial for marketers.
The reason is that changing demographics mean changing markets. Further, changing markets mean a need for adjusted marketing strategies. Therefore, marketers should keep a close eye on demographics. This may include all kinds of characteristics of the population, such as size, growth, density, age- and gender structure, and so on. Some of the most important demographic trends that affect markets are:. The world population is growing at an explosive rate. Already in , it reached 7 billion, while being expected to reach 8 billion by the year By the end of the century, it is likely to double.
However, the strongest growth occurs where wealth and stability is mostly absent. This changes requirements for effective marketing strategies and should be kept in mind. The changing age structure of world population is another critical factor influencing marketing. In the future, there will be countries with far more favourable age structures than others. For example, India has one of the youngest populations on earth and is expected to keep that status.
By , the median age in India will be 28 years. In contrast, the countries of the European Union and the USA have to face an aging population already today. This may lead to harmful reductions in dynamism and challenges regarding the supply of young workers who, at the same time, have to support a growing population of elderly people.
Also, families are changing which means that the marketing strategies aimed at them must undergo an adjustment. For example, new household formats start emerging in many countries. While in traditional western countries a typical household consisted of husband, wife and children, nowadays there are more married couples without children, as well as single parent and single households.
Another factor comes from the growing number of women working full time, particularly in European nations. Together with further forces, changing family structures require the marketing strategy to be changed. One — and the most important — element of geographic shifts is migration. By , global migration is expected to double.
This has a major impact on both the location and the nature of demand for products and services. The reason is that the place people can be reached has changed, as have their needs because of the new situations. Other important factors are the ethnic diversity that provides new opportunities, as well as urbanisation. The Economic forces relate to factors that affect consumer purchasing power and spending patterns.
For instance, a company should never start exporting to a country before having examined how much people will be able to spend. The basis for these factors is formed by the fact that people are part of a society and cultural group that shape their beliefs and values. Many cultural blunders occur due to the failure of businesses in understanding foreign cultures. For instance, symbols may carry a negative meaning in another culture. Technological forces form a crucial influence in the Macro Environment.
They relate to factors that create new technologies and thereby create new product and market opportunities. A technological force everybody can think of nowadays is the development of wireless communication techniques, smartphones, tablets and so further. This may mean the emerge of opportunities for a business, but watch out: every new technology replaces an older one.
Thus, marketers must watch the technological environment closely and adapt in order to keep up. Otherwise, the products will soon be outdated, and the company will miss new product and market opportunities. Ecological, or natural forces in the Macro Environment are important since they are about the natural resources which are needed as inputs by marketers or which are affected by their marketing activities. Also, environmental concerns have grown strongly in recent years, which makes the ecological force a crucial factor to consider.
For instance, world, air and water pollution are headlines every marketer should be aware of. In other words, you should keep track of the trends in the ecological environment. Important trends in the ecological environment are the growing shortage of raw materials and the care for renewable resources. In addition, increased pollution, but also increased intervention of government in natural resource management is an issue.
Because of all these concerns and the increased involvement of society in ecological issues, companies more than ever before need to consider and implement environmental sustainability. This means that they should contribute to supporting the environment, for instance by using renewable energy sources. Thereby, businesses do not only support the maintenance of a green planet, but also respond to consumer demands for environmentally friendly and responsible products.
Every business is limited by the political environment. This involves laws, government agencies and pressure groups. These influence and restrict organisations and individuals in a society. Therefore, marketing decisions are strongly influenced and affected by developments in the political environment. Before entering a new market in a foreign country, the company should know everything about the legal and political environment. How will the legislation affect the business?
What rules does it need to obey? For example, laws covering issues such as environmental protection, product safety regulations, competition, pricing etc. As we have seen, the company is surrounded by a complex environment.
The Macro Environment consists of a large variety of different forces. All of these may shape opportunities for the company, but could also pose threats. Therefore, it is of critical importance that marketers understand and have an eye on development in the Macro Environment, to make their business grow in the long term. Characteristics of Services: What is a Service — And what Product Mix decisions — Width, length, depth and consistency.
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Global Forces and the Advertising Industry
The company is not alone in its business environment. It is surrounded by and operates in a larger context. This context is called the Macro Environment. It consists of all the forces that shape opportunities, but also pose threats to the company. The Macro Environment consists of 6 different forces. Demographic forces relate to people. The name refers to the term Demography.
Industry-specific and extensively researched technical data partially from exclusive partnerships. A paid subscription is required for full access. Additional Information. Show source. Show sources information Show publisher information. Advertising spending in the world's largest ad markets
Growth of advertising spending worldwide 2000-2022
After studying this section, students should be able to do the following:. Advertising supports the core principles that shaped our nation: free speech, competition, and democracy. Since colonial times, advertising has provided a source of vital information about our open, market-based economy. Two Nobel Laureates in economics, Dr.
In the growing world of competitive businesses, strategic management is where the process of certain levels of management set their goals and strategies within a company. Strategic management equips a company with the overall direction of the functional areas of business company department like finance and accounting, production, and marketing that gives the management the opportunity to understand the concept of each level of operation in the entire company Aaker, Managers should ensure that they bring out the best at each level of operation to achieve the best possible strengths and weaknesses in business environment. With the current state of affairs, advertising will need to relook into their strategic management models in order to ensure that the strategies being applied are not only relevant but are capable of creating value for the industry and clients.
Awareness of these forces can help a company stake out a position in its industry that is less vulnerable to attack. The essence of strategy formulation is coping with competition. Yet it is easy to view competition too narrowly and too pessimistically.
caso Global forces and the advertising industry (2) _ caso.pdf
Good service and is deliverd with less escalations and the work was simple and clear. If the bargaining power of the buyers is changed, then the supplier should change their cost structure. In the advertising industry, the customer is the external stakeholders. The suppliers that are companies should develop a marketing strategy to improve their products because in the advertisement industry, the customers can attract only by the good advertisement and by the products of the company.
Never miss a great news story! Get instant notifications from Economic Times Allow Not now. The five forces model of analysis was developed by Michael Porter to analyze the competitive environment in which a product or company works.
caso Global forces and the advertising industry (2) _ noanimalpoaching.org - Free download as PDF File .pdf) or read online for free.
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Michael E. Founded in , the company enjoys a leading position in the online advertising market. As a large international enterprise, the technology business has operations in key strategic locations around the world. The industry environment involves various industries and target markets, considering the variety of technology products and services that the company offers.
Однажды в компьютере случился сбой, причину которого никто не мог установить. После многочасовых поисков ее обнаружил младший лаборант. То была моль, севшая на одну из плат, в результате чего произошло короткое замыкание. Тогда-то виновников компьютерных сбоев и стали называть вирусами.
ГЛАВА 80 Хейл, крепко сжимая шею Сьюзан, крикнул в темноту: - Коммандер, твоя подружка у меня в руках.