having a consumer base is vital to any business; without customers the firm
will have nobody to sell its goods or services to and will therefore go into
has needs and wants. We have a
minimum level of needs which are necessary for survival, e.g., food, liquid,
shelter, heat and clothing.
would rather enjoy a higher standard of living, this is because we all have
an unlimited number of wants, e.g., holidays, cars and clothes.
needs change over time and firms have to react to this.
It maybe that fashions are changing or a craze has just gone out.
Consumers’ views about products also change and if firms fail to
acknowledge this, they will cease to purchase that good or service.
pressure groups may be set up and they can have a great influence upon the
activities of businesses. Recent
examples include the testing of cosmetics on animals, the release of harmful
substances into the atmosphere and the inclusion of genetically modified
goods in food stuffs.
like the Body Shop have played greatly upon the fact that they take into
account the ethics and culture of present day society.
They constantly adapt and change their product line and the way the
products are produced and sold.
Population Structure (Demography)
involves the study of the population of a country, including its size, age
size of the population is dependent of its birth rate, death rate and the
level of migration. Most
developed countries have a stable population, however there are a number of
changes that are taking place at regional level.
For example companies in the Southeast of England have had to react to
an increasing population over the past 25 years as people move into the area
in the hope of finding work.
means that there are more consumers and therefore a greater potential demand
for products. This will be not
only for highstreet goods, but also for housing, schooling and healthcare. As companies find demand for their products increase, they
may also find that costs increase, for example land becomes more expensive.
developing countries total population growth does occur.
This ha led to opportunities for domestic companies and foreign
multi-nationals looking for expanding markets.
developed countries are experiencing what is known as the population time
bomb; the average age of the population is rising as birth and death rates
the UK between 1971 and 1991 the number of people over 65 increased by 16%
and it is forecast to rise by a further 38% by 2031.
people require more healthcare related products, while firms that sell baby
products will see a decline in the potential demand for their goods.
gender balance only normally change in times of war.
Woman are however becoming more dominant in society, often being the
bread winners in a household and commanding far greater disposable incomes.
is the beliefs, attitudes, values and ethics of the people in the society,
they can be summed up by describing them as social trends.
main changes in UK demography have been: