Demographic Environment
Demographic refers to the study of human populations. This includes size, density, age, gender, occupation and other statistics. Why are people important? Because, Especially in times of rapid world population growth, and overall demographic changes, the study of people is very important for marketers. The reason is that changing demographics mean changing markets. So , changing markets mean a need for adjusted marketing strategies.
Some of the most important demographic trends that affect markets are:
-World population growth
-Changing age structure
-Changing family structures
Economic Environment
In a recession, people lose jobs, or worry about that happening to them. This makes consumers less willing to spend their income. Economic Environment consists of economic factors that affect consumer purchasing power and expenses.
Some of the most important economic trends that affect markets are:
-The rate of economic growth (Prosperity)
-the rate of inflation (Recession)
-The interest rate (Depression)
-Wage rate (Recovery)