INTRODUCTION An organizations success is influenced by factors operating in its internal and external environment; an organization can increase its

success by adopting strategies which manipulate these factors to its advantage. A successful organization will not only understand existing factors but also forecast change, so that it can take advantage of change within the environments in which it operates.

SOCIOCULTURAL ENVIRONMENT - It represents the values, attitudes, opinions, culture and general behavior of individuals in given society. - Transformations in a societys culture occur gradually in democratic countries. Example: - US market changes in individual values and shifts in family structure. -affected the sale of personal consumer products, the development of advertising programs to accommodate more joint decision making, the creation of special marketing programs for minority groups, the popularity of fast-food outlets, and the emergence of more energy-saving, reliable and long-lasting products. Social factors influence people's choices and include societal beliefs, values and attitudes. When looking at socio-cultural factors, you need to consider: demographic changes and also consumer views on your product & industry; environmental issues (especially if your product involves hazardous or potentially damaging production processes); Lifestyle changes and attitudes to health, wealth age (children, the elderly, etc.), gender, work and leisure. Population growth rate and age profile. Population health, education and social mobility, and attitudes to these. Population employment patterns, job market freedom and attitudes to work. Press attitudes, public opinion, social attitudes and social taboos. Lifestyle choices and attitudes to these. Socio-cultural changes. The social and cultural influences on business vary from country to country. It is very important that such factors are considered. Factors include: 1.What is the dominant religion? 2.What are attitudes to foreign products and services? 3.Does language impact upon the diffusion of products onto markets? 4.How much time do consumers have for leisure? 5.What are the roles of men and women within society? 6.How long are the population living? Are the older generations wealthy? 7.Do the population have a strong/weak opinion on green issues? CHANGING INDIVIDUAL VALUES Individual values shifted for a variety of reasons: 1. New sense of lowered expectations 2. Apprehensions about the future 3. Mistrust of institutions 4. A growing sense of limits Effects on individuals: 1. More concerned about self-actualization or the quality of life than about security. 2. Seek for the meaning of work. 3. Relationships with the opposite sex. 4. Importance of inner harmony underwent change as more people questioned the traditional ways of defining success. Consequences:

1. Marriages were postponed 2. Birthrates dropped 3. Divorce rates skyrocketed 4. Young women joined the labor force 5. Other changes (education, health, dependent care and personal safety) *Marketers find that consumers are preoccupied with maintaining economic stability in an environment perceived as hostile. CHANGING FAMILY STRUCTURE - Cultural norms change over time. - Examples: -traditional husband-dominated, closely structured family is growing less and less typical of North American society. -children are becoming more autonomous and participate at an earlier age in many family decisions. -more women are economically independent -working parents absence from the home has substantially reduced the interactions among family members, eroding cohesiveness. -rising divorce rate has made one-parent households common. The evolution of the family has considerably changed the buying process for many goods. Example: It is now common for all family members to influence the purchase of such major durables such as housing, cars, furniture and appliances. Many food firms are redirecting some of their marketing communications from media aimed primarily at women to those appealing to men and children.

For example within the UK peoples attitudes are changing towards their diet and health. As a result the UK is seeing an increase in the number of people joining fitness clubs and a massive growth for the demand of organic food. Products such as Wii Fit attempt to deal with societys concern, about childrens lack of exercise. CONLUSION: In summary organizations must be able to offer products and services that aim to complement and benefit peoples lifestyle and behavior. If organizations do not respond to changes in society they will lose market share and demand for their product or service. TECHNOLOGICAL ENVIRONMENT - Technology drives the development of many new products and markets, but it is also a major reason why others decline. -impact an industrys performance -accelerated the potential of technological developments - The increasing speed of technological changes, like in microelectronics or robotics can either indicate risks or chances for a company. - affect all marketing activities: 1. Communications (making available new media or new selling tools) 2. Distribution (opening new channels or modifying the operations and performance of existing ones) 3. Packaging (using of new materials) 4. Marketing research (monitoring sales of food stores via scanners) For example the Internet is having a profound impact on the marketing mix strategy of organizations. Consumers can now shop 24 hours a day from their homes, work, Internet cafs and via 3G phones and 3G cards. Technological advances have greatly changed the manner in which businesses operate. Organizations use technology in many ways: 1. Technology infrastructure such as the internet and other information exchange systems including telephone. 2. Technology systems incorporating a multitude of software which help them manage their business. 3. Technology hardware such as mobile phones, Blackberrys, laptops, desktops, Bluetooth devices, photocopiers and fax machines which transmit and record information. Technological factors Technological changes New or improved distribution channels Improved communication and knowledge transfer etc.

moral factor

Technology is vital for competitive advantage, and is a major driver of globalization. Consider the following points: 1. Does technology allow for products and services to be made more cheaply and to a better standard of quality? 2.Do the technologies offer consumers and businesses more innovative products and services such as Internet banking, new generation mobile telephones, etc? 3.How is distribution changed by new technologies e.g. books via the Internet, flight tickets, auctions, etc? 4.Does technology offer companies a new way to communicate with consumers e.g. banners, Customer Relationship Management (CRM), etc? INTENSIFICATION OF TECHNOLOGICAL DEVELOPMENT -spurred by the need to find solutions to our environmental problems. - major technological innovations can be expected in a variety of fields: TRENDS IN BIOLOGY - Anticipated applications of the resulting technologies in the pharmaceutical and agricultural areas, while raising ethical issues, include such exciting areas as: Pharmaceuticals: -production of human growth hormones to cure dwarfism and prevent muscle wastage -introduction of genetically engineered vaccines to eliminate many infectious diseases. -replacement of defective genes that causes about 4,000 diseases Agriculture: -production of more resistant livestock and plants -genetically engineered tomato which is highly flavored TRENDS IN ELECTRONICS - Computers, radio, television, digital watches, automatic cameras, video games and microcomputers. - Telephone calls, television and movies are being digitized. - Phone companies, cable operators and utilities are competing to service homes and offices with an array of traditional services plus providing access to libraries comprised of books and films. TRENDS IN MANUFACTURED MATERIALS - Improvement of existing materials - Examples: -development of extra tough steel which can be used in a variety of ways including building of space shuttle engines. -extremely light silicon mixtures that are used to make lightweight ceramics that tolerate extremely high temperatures used in cars, jet engines and air frames. CONCLUSION: The pace of technological change is so fast that the average life of a computer chip is approximately 6 months. Technology is utilized by all age groups, children are exposed to technology from birth and a new generation of technology savvy pensioners known as silver surfers have emerged. Technology will continue to evolve and impact on consumer habits and expectations, organizations that ignore this fact face extinction.