Question

Marketing environment consists of six components: demographic, social culture, political legal, economy, nature, and technology. Marketers must pay close attention to the trend and development in these components. Elaborate each of the components by giving example to pandemic Covid19 effects. You may choose one company and discuss how the company adjust their marketing strategies.

Answer 1

Company – Amazon

The six components of the marketing environment in this pandemic COVID-19 are-

1. Demographic- It is true that the pandemic COVID-19 has impacted the business greatly. Amazon has taken drastic measures to avoid price gouges to help protect customers of all age groups who are buying from Amazon. Amazon also has teenagers buying their products. Customers now prefer Amazon in this pandemic to avoid the spread of COVID-19 and maintain social distancing in their shopping. Amazon’s Whole Foods Market stores have specific shopping hours to help the customers aged above 60 years and the disabled to shop as they are more vulnerable for COVID-19.

2. Social Culture- The culture and the lifestyle of the people has changed significantly due to the pandemic COVID-19. People fear social networking and maintain social distancing even during their shopping. Customers who are ordering a scheduled delivery can choose the front porch to deliver their orders to avoid contact with other delivery employees. Amazon employees will not enter homes or the offices to deliver the packages.

3. Political legal – The legal regulation is that the employees should adhere to social distancing and wear protective gears and masks. Amazon ensures that they comply with these policies. Amazon has made about 150 updates in their processes and procedures. Amazon has made it mandatory to follow the safety protocol for their employees and customers.

4. Economy- Economy now has a high unemployment rate due to the pandemic COVID-19 hence Amazon has hired about 170,000 employees to support their families. Amazon has also donated to Feeding America.

5. Nature- Amazon has invested in diagnostic labs to speed up research for COVID-19.

6. Technology- Amazon has used technology to help small businesses to survive in this pandemic COVID-19. It has built an app ALFA, to help the small businesses to navigate through the process of loan forgiveness from the US Business Administration and convert their loans into grants.

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