Proceedings of the 2nd Economics & Finance Conference, Vienna

CONTEMPORARY ECONOMIC AND SOCIAL TRENDS AND THEIR IMPACT ON MARKETING

NEVIANA KRASTEVA

Abstract:

The focus of this study is the impact that the recent economic and social tendencies have upon the marketing of firms. The ways in which the marketing policies and practices are influenced by the dynamic changes in the physical space, demographics, behavioral models and economic growth will be examined. The scarcity of resources leads not only to a search of new sources and surrogate technologies, but also to a struggle on the firm level to lower the operational costs without diminishing the value of their products to the consumers. The heightened ecological concerns and stricter regulations necessitate the presence of a “green idea” in most products not as an extra, but as an expected characteristic for which no additional money is charged. The changes in the demographic structure and the increase in percentage of older people, especially in the developed world, calls for marketing to be targeting the solvent parts of the population; these are no longer just the traditional group aged 18-34, but the generation of the baby-boomers which preceded them. The increased frequency of divorces also modifies the needs of the consumers and the general client profile. The increased presence of the digital and on-line worlds in the daily life of people also alters the consumer behavior; the presence and active marketing use of social networks and Internet resources is no longer a choice, but a must for companies. The global shifts of the centers of economic power towards the modernistic markets of China, India, Brazil and Russia present new problems about market presence and consumer satisfaction of well-known Euro-American brands and companies in those countries. The reverse trend is also present – more and more firms from emerging economies are highly successful in promoting their products in the markets of the developed world. Last but not least, the technological changes, the adjustment in the character of small retailers, the rise of powerful distributors with great sway in negotiations and the momentum that the digitalization of commerce has all have deep impact on the way marketing programs and channels are structured. The recognition and adequate addressing of all of these trends is a key challenge before businesses across the world in the 21st century.

Keywords: Contemporary marketing, Physical environment, Resource scarcity, Behavioral models, Demographic profile, Social networks, Change in retail

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