Explain the terms fad, trend and mega environment.
Information is a valuable commodity for any organization to have; if it is usable. Marketing information is crucial as it dictates which direction the organization should concentrate their efforts. “Marketing information system” should be developed from internal knowledge, marketing activities and market research such as fads, trends and megatrends. A fad as described as “unpredictable, short-lived, and without social, economic, and political significance”. A trend on the other hand, “is a direction or sequence of events that has some momentum and durability”; unlike fads, trends are “predictable and durable”. Megatrends as described as “large-social, economic, political and technological changes”. However, megatrends are slow to form, but once they take place they can influence society for a period of seven to ten years or longer.
Explain any two types of Macro environments
The economic environment is important to marketers because it affects the amount of money people have to spend on products and services. One of the components of the economic environment is the distribution of income.
Economies around the world not only vary in their absolute or total level of wealth but also in how their wealth is spread within the population. For example, poor countries may be classified either as those which have a highly unequal spread of wealth or those where it is more evenly shared. The former group of countries may be markets for luxury goods, despite the level of poverty. In contrast, the second type of country may be more attractive to marketers of inexpensive goods for the mass market.
Consumers around the world differ in the extent to which they save money and the use they make of credit facilities. A high propensity to save will result in a lower propensity to consume. However, these patterns will also have a secondary effect on the overall...