About Lesson
These are broad societal forces that impact the entire market environment. They are usually
out of an organization’s control, but they play a crucial role in shaping the market landscape.
- Demographic Forces: This refers to the statistical characteristics of a population,
such as age, gender, ethnicity, education, occupation, income, and family size. Shifts
in demographic trends can influence market demand and product preferences. - Economic Forces: Economic conditions, such as inflation, unemployment, interest
rates, and consumer confidence, directly affect consumer purchasing power and
spending patterns. - Natural Forces: This pertains to the physical environment and natural resources used
by marketers or affected by marketing activities. For instance, scarcity of a natural
resource can influence production costs and product availability. - Technological Forces: Advances in technology can create new markets, products,
and opportunities. Conversely, they can also render existing products obsolete.
Technological forces encompass innovation, research, automation, and the rate of
technological change. - Political and Legal Forces: These involve the impact of laws, government agencies,
and pressure groups. They can introduce market constraints or opportunities, such as
regulations, tariffs, or trade agreements. - Cultural and Social Forces: The values, perceptions, beliefs, norms, and practices of
a society shape consumer behavior and influence marketing decisions. Changes in
societal attitudes can affect demand for products or the acceptability of marketing
strategies.