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Changing market environment
‘New reality’
- greater degree of economic volatility and uncertainty
- opening up of different geographic markets
- high and seemingly ever higher levels of political change
- far greater pace of technological change
- new forms of distribution and access to markets, including through internet
- new competitors and competition
- global nature of markets
- erosion of traditional bases of competitive advantage
- downward pressure of prices, offering value
- different social and cultural pressures, new consumer
How consumers have changed
Originally the idea of ‘Nuclear family’ where mum and dad worked
Changed towards current idea of family where mum and dad coexist and help each other out
Different generations
Back (Definition)
The new consumer
Gillian and Wilson (2003)
‘Not necessarily new in any absolute sense, they differ in a wide variety of ways from traditional consumers in that their expectations, values and patterns of behaviour are all very different from those of the past’
Marketers need better understanding and better effort to market tailored to consumers and their needs
7 characteristics of modern consumers
1) around the clock shopping - 24/7
2) shop around to find deals - less loyal
3) omnichannel shopping - buy through multiple channels and tested same wherever we go
4) content consumers - more content provided, make better decisions
5) global experience- same experience wherever you are in world
6) collaborators
7) social shares - social media and communication present with all consumers
New consumer: features:
Far more demanding
Far more discriminating
More sceptical and questioning
Better connected and protected
Less technophobia
Less brand loyalty and brand promiscuity present
More willing to complain than previous consumers
Greater concern for environment and others - ethics, CSR
Changing social, cultural and demographic environments
1. Greater affluence, materialism and ethnicity - immigration and migration
2. Greater degree of social mobility - travel more easy
3. Greater urbanisation of society - more people in cities
4. Larger number of young people in higher education
5. Collapse of the idea of job for life - move when dissatisfied
6. Communications revolution- social media and technology
7. Erosion of individual deference and heightened expectations- sceptical of news and government etc
Social and cultural changes
Explosion of worlds population - 7.3 billion in 2017
Slowdown in birth rates
Changes in family structure
Higher education levels
Rapidly ageing population
Growth in emigration
Rise of 99 lives phenomenon - customers have different roles (mum, teacher etc) and all can be different consumers shopping at any given time
Youthful elderly
Increasingly elderly population, but little thought has been given to buying habits
Youthful elderly- elderly people retaining youthful lifestyles and attitudes
Eg. 44% of pop over 50 in UK - many products owned by reebok and Nike by 30-50 year olds, as is by 18-24
Shift from old to new consumer
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