Changes in Socio-Cultural Trends and How It Affects the Marketing Mix of 2 Companies (Astro & Maggi) in Malaysia
Assignment Question A Examine the scope and activities of your own country of residence, or one that you are very familiar with. 1. Identify and examine the key social-cultural trends, including demographic and lifestyle developments that have taken place within your chosen country over the past decade. 2. From your answer to (1) above, choose one example of ‘change’ for (a) a manufacturer and (b) a service organization and examine: i. ii. How this change has affected demand for the existing product / service. How the provider has reacted to this change in demand
Response to Question A – Part 1
The social-cultural environment affects how and why people live and behave as they do (McCarthy, 1993). It is made up of numerous variables including education levels, food consumed, clothing styles and awareness on global issues. The socialcultural environment is one that keeps evolving and can have far-reaching effects on customers’ buying behaviour.
Drawing from how changes in buying behaviour is based on changes in the various external stimuli exerted on the buyer (Wilson, 1994), we can assume that changes in the social-cultural environment is also based on changes in the various external stimuli impacting it as illustrated in Diagram1.
External Stimuli Demographics Economy Changes in the Social-Cultural Environment
Social-Cultural Environment
Political/Regulatory Environment
Technology
Diagram 1: Drivers of Social-Cultural change. Adapted from Wilson 1994, Strategic Marketing Management
In the following paragraphs, we will use this model to detail changes in external stimuli that have impacted the social-cultural environment in Malaysia over the past decade and the corresponding trends, i.e. change which has momentum and durability (Kotler, 1996).
Marketing Strategy – Assignment 1 – Aug/Sept 2009 Page 1
Calvin Ronald R. Jacob - University ID : 7525813 Assessment Reference: MS/July 2009/1
Demographics The Malaysian population stands at 28.31 million and
Response to Question A – Part 1
The social-cultural environment affects how and why people live and behave as they do (McCarthy, 1993). It is made up of numerous variables including education levels, food consumed, clothing styles and awareness on global issues. The socialcultural environment is one that keeps evolving and can have far-reaching effects on customers’ buying behaviour.
Drawing from how changes in buying behaviour is based on changes in the various external stimuli exerted on the buyer (Wilson, 1994), we can assume that changes in the social-cultural environment is also based on changes in the various external stimuli impacting it as illustrated in Diagram1.
External Stimuli Demographics Economy Changes in the Social-Cultural Environment
Social-Cultural Environment
Political/Regulatory Environment
Technology
Diagram 1: Drivers of Social-Cultural change. Adapted from Wilson 1994, Strategic Marketing Management
In the following paragraphs, we will use this model to detail changes in external stimuli that have impacted the social-cultural environment in Malaysia over the past decade and the corresponding trends, i.e. change which has momentum and durability (Kotler, 1996).
Marketing Strategy – Assignment 1 – Aug/Sept 2009 Page 1
Calvin Ronald R. Jacob - University ID : 7525813 Assessment Reference: MS/July 2009/1
Demographics The Malaysian population stands at 28.31 million and
References: Academic references Richard MS Wilson, 1994, Strategic Marketing Management, First Edition: Butterworth Heinemann McCarthy EJ (1960) Basic Marketing: A Managerial Approach. Homewood IL: Irwin. Philip Kotler; Swee Hoon Ang; Siew Meng Leong, 1996, Management: An Asian Perspective, Prentice Hall Ansoff, 1968, Corporate Strategy, Penguin Books Kotler, 1988, Marketing Management: Analysis, Planning, Implementation and Control, Prentice Hall, 6 th Edition Baker, 1985, Marketing Strategy and Management, Macmillan Malaysian Demographics and Social Cultural Trends Department of Statistics Malaysia, www.statistics.gov.my www.indexmundi.com 2009 PricewaterhouseCoopers survey on millennials at work, http://www.pwc.com/my/en/publications/index.jhtml State of the Internet report, www.akamai.com Nestle/Maggi www.nestle.com.my www.maggi.com.my Nestle Malaysia’s Annual Reports Astro www.astro.com.my www.astroplc.com Astro’s Annual Reports Media Partners Asia - Asia Pacific Pay-TV & Broadband Markets Report Marketing Strategy – Assignment 1 – Aug/Sept 2009 Page 15