Trends

by Anthony Williams | on June 6, 2013  

The Importance of Anticipating New Trends or Changes in the Environment

 

It is important for a firm to anticipate new trends or changes in the environment. Because trends or changes in the environment are elements that help shape opportunities. New trends or changes may develop limitations for some possibilities. Or, prevent some possibilities altogether. While, on the other hand, they may facilitate the attractiveness of others.

For example, one may plan to enter a certain market but, the economical environment may change weakening one’s financial strength. Thus, this may be a barrier to entry into that market, and one’s possibilities are now limited or halted. One may have to use one’s intended investment to try and save one’s current business (Perreault, Cannon, & McCarthy, 2011).

By contrast, the new economy may create new possibilities for another investor. He or she may have the financial strength to buy a few houses now at a low price, and sell high later; if, or when the economy recovers. So, new trends or changes will definitely change the focus of a marketing plan. If marketing managers recognize these changes early, they can take advantage of big opportunities as first movers. So too, a marketing plan strategy may need to be altered (Perreault et al., 2011).

Market Trends is one of many Demographic Factors to be Aware of when making Marketing Decisions

 

Demographic factors managers should be aware of in order to make the most effective marketing decisions include, but are not limited to the following. Ethnic diversity, market trends, and income distribution; where there is no money there is no market, and market trends may be based on the population diversity.

Target marketers focus on customers, and customers from different ethnic groups may respond to totally different cultural variables. These customers may have different needs to be filled, and think in very different ways. This presents opportunities for the marketer. That is, if promotions are done to target related markets, in accordance with research to identify brand preference within ethnic groups (Perreault et al., 2011).

Reasons to Identify Market Trends

 

In addition, by identifying market trends the marketer may be able to isolate areas to target. For instance, the birth rate may be higher in one area. As a result, this area may be great for marketing baby products. If a marketer also knew that the United States has the highest divorce rate in the world. Base on that fact, he or she may decide to target single parents as well.

So, by having knowledge of marketing trends, a marketer may segment and target the right market. Moreover, income distribution is also important. Marketers may do better to promote products where there is more disposable and discretionary income. The highlight here is discretionary income, since income has a direct affect on how customers spend. And, discretionary income is what is left after taxes and all necessities are met. Therefore, marketers should be aware of ethnic diversity, market trends, and income distribution. Because together they play an important part, and dictates the marketing strategy plan (Perreault et al., 2011).

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Reference

Perreault, Jr. W. D., Cannon, J. P., & McCarthy, J. E. (2011). Basic marketing: A marketing strategy planning approach (16TH ed.). Vol. I., Laureate Education. The McGraw-Hill Companies, Inc.