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Principles of Marketing - Philip Kotler

Operating Environment

Apart from the people themselves, for the markets is also important, and their purchasing power. The general level of purchasing power depends on the level of current income, prices, savings, and credit availability. In purchasing power affected by economic downturns, high unemployment, rising cost of obtaining credit.

The response of many Americans to the current economic situation has become more cautious approach to purchasing. To save money, they began to buy more goods "store brands" and less goods "national brands." Many companies began to produce "fuel-efficient" versions of their products, and advertising appeals to focus on price appeal. Some consumers postponed purchases of durable goods and others? on the contrary, they have accelerated because of fears that next year prices will rise by 10%. Many families feel that big house, two cars, traveling abroad and to higher education in private schools they already can not afford. At the same time, verily, as can be seen from Table. 4, redistribution of percentages of the costs for a number of product categories, such as the cost of food and clothing.

Table 4

The distribution of consumption expenditure,%

Figures of the market should pay attention to the nature of the income distribution. And the distribution of income in the United Shtatax still is very uneven. The leaders consumers belonging to the upper class, the nature of costs which is in no way affected by the recent developments in the economy and which remain the main market for luxury goods (such as cars, "Rolls-Royce" worth 100 thousand. USD. And above) and costly services (such as round the world voyages cost from 10 thousand. USD. and above).

Then there are the middle-class consumers, limiting himself to a few costs, but still feels quite comfortable and able to buy expensive clothes, antiques, second boat or a second home. The working class is almost should not go beyond the acquisition of basic necessities of food, clothing and shelter, and should by all means try to save something. Finally, representatives of the lower strata of society (people living on social security benefits), as well as many pensioners are forced to count every penny when making even the most necessary purchases.

Figures of the market should take into account geographic differences in income distribution. (For example, the city of Houston is growing rapidly, while Detroit withers.) They should concentrate their efforts on areas, opening the most promising opportunities.