May, 3, 2012
Hybrid Vehicle Macro-Trend Analysis
As gas prices continue to rise, people have started to trend toward more energy efficient means of transportation. Hybrid vehicles have an electric motor along with rechargeable batteries and have an increased efficiency of up to 50 percent. There is an onboard computer that switches between gas and electric power. The hybrid car runs on the energy of the battery when it is cruising, using less energy. When it needs additional power, the fuel engine is used for energy purposes. The market for hybrids can be analyzed by looking at the macro environmental trends (macro trends). According to Mullins and Walker (2010), “the macro environment can be divided into six major components: demographic, sociocultural, economic, technological, regulatory, and natural environments” (p. 97). According to the American Marketing Associations of Marketing, when consumers have to do more to make a product ready for consumption, they will give the end product better reviews and think more highly of the product they use. (Journal of marketing) Understanding these trends will help managers learn how to market these vehicles successfully. Demographic
The Baby Boomer generation was born between 1946 and 1964 has largely impacted the economy and will continue to for some time to come. This generation allows for an increase in the 45 to 85 year old population. There is also an increase in the Hispanic market in the United States (U.S. Census Bureau). Marketers of hybrid vehicles have to target this market and make the vehicles more appealing to them in order to leverage their population and maintain an increase in demand. There is a population trend toward warmer climates and coastal regions in the United States (U.S. Census Bureau). The demand for hybrid vehicles in these areas and in the more congested urban areas will increase in the next few years....