Major Societal Forces Affecting Marketing

Introduction

Marketing depends on several micro- and macro- environmental factors. The market of today is different from what it used to be. Decades ago, it was easy to judge the market, but now it's not an easy task. Nowadays, the marketplace is radically different because of several factors that are somehow interlinked with each other.

These factors have created a lot of challenges for marketers, but at the same time, they have also created a lot of opportunities. Let's study each one of them in detail −

Network Information Technology

The growth of digital technology has created a new era of the information age. The Industrial Revolution was the first technological growth of the market. It was distinguished by mass production and mass consumption. There were a lot of inventory stores. Everywhere, there were ads and lots of discounts. The information age of today is leading to more efficient levels of production, more communications, and more accurate pricing.

Globalization

Globalization has led a product to reach a global level. Technological breakthroughs in transportation, shipping, and communication have made it very lucrative for companies to promote a product at a global level and help it reach a large scale so that a consumer can buy it in any corner of the world.

Deregulation

Many countries have announced deregulation in various forms to promote competition in different fields. It has capped out different rules and regulations and announced liberalization in various forms to help companies get easily flattered and fly. For example, since the deregulation of airline companies in India, they have grown tremendously. The same goes for other industries.

Privatization

Many countries have privatized different companies that were public to increase their efficiency. For example, we can take the example of British Airways and British Telecom in the United Kingdom. India is also taking different steps in this regard, and they should be really welcomed and promoted.

Heightened Competition

Brand manufacturers nowadays face cutthroat competition from domestic and foreign brands, resulting in higher marketing and advertisement costs and a deterioration of profit margins. Then they have to face lots of retailers that cost a lot and now open their own stores and have their own brands in competition with national brands. Many reputed brands are extending their arms in related product categories, creating multiple brands with much pressure and reputation.

Industry Convergence

Industries are extending their boundaries on a vast scale because they have started recognizing that new growth opportunities lie at the intersection of two or more industries. For example, the computing and consumer electronics industries are now partnering with giants of the computer world, such as Dell Gateway, for the introduction of new entertainment devices.

Consumer Resistance

Marketers somewhere have to face consumer resistance in the early stages of the product life cycle. Many surveys have gathered the report that somewhere consumers have a negative opinion about the products that are over-marketed.

Retail Transformation

Retailers are transforming themselves on a massive scale. Small retailers are rapidly degrading because of that. Store-based retailers face acute competition from catalogue houses, direct mail firms, newspapers, magazines, television ads, home shopping ads, and e-marketing on the Internet. In response to this acute competition, retailers are building entertainment into their outlets with cafes, lectures, demonstrations, and performances, marketing them as experiences rather than product assortment and dealing.

Disintermediation

The new shopping apps have really removed the tension that marketers had to face in selling goods and services. The various successes of shopping sites such as Amazon and Flipkart have proved that showcasing products in front of customers is now really easy. The headache for retailers is now gradually going away. Many manufacturers are now promoting and selling their products on different shopping sites and apps. And it is not only about products but also services.

These societal factors have created different consumer capabilities, which are as follows −

• A relatively large increase in purchasing power - Consumers nowadays have plenty of opportunities to choose between different brands and their prices. This has increased their purchasing power to a great extent.

• An abundance of available goods and services - With the advancement of information technology, the consumer has an ample number of products from which he or she can select.

• A dozen information sources about different products and services - As discussed, consumers nowadays have a lot of sites and apps from which they can gather information about different products and services.

• A great ease in ordering and receiving products and services - With the advancement of technology, a consumer can order and receive products at an increased speed.

• An ability to compare different products and services - With all those discussed above, there are also opportunities for different consumers to choose between the abundant products and services available in the market.

• A platform to voice their preferences and opinions - The different media sites have given consumers a platform to voice their preferences and feedback easily and effectively.

Conclusion

The different societal factors discussed above have not only created challenges but opportunities as well. So with a clear application, it will be easy for marketers as well as consumers to grab different opportunities.