The Social Environment

Question 1

What does the social environment comprise of?

Answer 1

Comprises of the beliefs,desires,values and attitudes of consumers.
Consists of a society’s beliefs,customs, practices and behaviors.

Question 2

What does the social environment depend on?

Answer 2

Depends on the social construct (acceptable behaviors) of the target society.

Question 3

Importance of the Social environment.

Answer 3

•can determine the success or failure of a business.
•determines the type and number of customers a business attracts.
•determines the attitude customers exhibit towards an organizations products and services.
•gives an organization an insight into current trends they can take advantage of.
•helps an organization in segmenting the market.
•shapes an organization’s marketing strategy.

Question 4

What impact do social factors have?

Answer 4

They influence key stakeholders,such as employees and customers,shape business decisions, strategies, opportunities and challenges.

Question 5

List the social factors.(And expand on them)

Answer 5

•Occupation
•Age
•Income
•Consumption patterns
•Gender
•Ethnicity

Question 6

List the current social trends.(Expand on them)

Answer 6

•New behaviors
•Technology
•Growth of virtual market-places
•culturally diverse population.
•social classes
•Inclusivity
•Rise of the millennial generation
•Mobility
•Globalization

Question 7

Define a demographic environment

Answer 7

Describes the characteristics of a population that can be used to influence the success of a business.

Question 8

List the importance of Demographic environment.

Answer 8

•helps an organization determine who is likely to buy a product or service.
•helps a company identify target markets for specific products or services.
•tells companies exactly how to market and develop their brands in response to demographics.
•companies can identify trends within the population.
•affects an organization’s pricing model.
•identification of prospective clients.

Question 9

List the demographic variables.

Answer 9

•population size
•geographical distribution
•ethnic mix
•income distribution

Question 10

Discuss population size as a demographic variables.

Answer 10

These include increase or decrease in the population’s birth rate and changes in the average family size.

Question 11

Discuss geographical distribution

Answer 11

People’s buying preference vary by geographical region.

Question 12

Ethnic mix

Answer 12

When the ethnic mix of the population undergoes a change this can affect the definition of the organization’s potential customers and impact the workforce.

Question 13

Discuss income distribution as a demographic variable.

Answer 13

Determines the purchasing power.
Any changes in income distribution in the population usually leads to changes in saving and spending patterns.