Chapter

3
Collecting
Information and
Forecasting
Demand
Edited by: Dr. Vaidehi Shukla

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Analyzing the Macro environment
• Needs and Trends

– Fad- It is “unpredictable, short-lived, and without social,

economic, and political significance.” A direction or
sequence of events with momentum and durability,

– Trend It is more predictable and durable than a fad;

trends reveal the shape of the future and can provide
strategic direction

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• Megatrend A megatrend is a “large social, economic,
political, and technological change [that] is slow to form, and
once in place, influences us for some time—between seven
and ten years, or longer.”

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 Identifying the
Major Forces
• Six major forces in the broad environment

Demographic Natural

Economic Technological

Socio-cultural Political-legal

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 The Demographic Environment

• Worldwide population growth

• Population age mix

• Ethnic and other markets

• Educational groups

• Household patterns

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 The Economic Environment

CONSUMER PSYCHOLOGY

INCOME DISTRIBUTION

INCOME, SAVINGS, DEBT, CREDIT

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The Economic Environment- Income
distribution
• Subsistence • Very low incomes
economies • Mostly low incomes
• Raw-material- • Very low, very high
exporting economies incomes
• Industrializing • Low, medium, high
economies incomes
• Industrial economies • Mostly medium
incomes

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The Socio cultural Environment

Views of Views of
ourselves society

Views of Views of
others nature

Views of Views of the

organizations universe

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 The Socio cultural Environment

• Core cultural values

– Values are passed from parents to children
and reinforced by social institutions

• Subcultures
– Groups with shared values, beliefs,
preferences, and behaviors emerging from
their special life experiences or circumstances

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 The natural environment
• Corporate environmentalism
– Opportunities await those who can reconcile
prosperity with environmental protection

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The Technological Environment

Accelerating pace of change

Unlimited opportunities
for innovation

Varying R&D budgets

Increased regulation of
technological change

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The Political-Legal Environment

LAWS

GOVERNMENT AGENCIES

PRESSURE GROUPS

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