Question

MARKETING QUESTION:

If population gets older and families have fewer children, what specific implications will these changes have for manufacture and marketers of consumer goods? Provide some examples of products that may face changes in demands or difficulty in marketing.

Answer 1

In today’s turbulent business environment, corporate should be flexible and responsive. Corporate parent in a multi firm organization can facilitate creating strategically organization, which have cascading effect on divisions under its control, which can become a true value driver. For this mostly people think that in their career babies are the main obstruction. Also one of the worst dangers which the entire globe is facing today is the issue of overpopulation. But when the reality is observed the opposite is true. This has led to the concept of Global Baby bust. Since 1960 there has been an enormous decrease in the World population growth of about 4o percent. Although there may be several different reasons behind this decline like more career oriented women, desire of acquiring higher education to sustain in this global market. Whatever may be the reason, the result is that the world has to pay for this kind of global baby bust.

One can see the implications of baby bust in the business world for consumer goods even. As large part of population supports fewer or no children, they will be spending less for consumption goods and also investment will also go lower. The primary goal of the marketing is to make the product and services widely known to the people so that they can reach them and can provide monetarily benefits to the business. It has become more competitive in today’s time. Moreover, large numbers of products are formed and advertised keeping in mind children and young generation. If there will not be any buyers for them, the marketers will face a major loss in their business.

Not only the marketers, all those organizations and companies also who sell their products to the government will be affected by this problem. The company has always given preference to the customers’ culture and values when it transcends from one country to another. In order to reduce the marketing cost and also to improve the effectiveness of the market, a vast number of organizations across the globe have started using various marketing strategies. Economic production and growth, what GNP represents, has a large impact on nearly everyone within that economy. For example, when the economy is healthy, the unemployment is typically low and wages increase as businesses demand labor to meet the growing economy. A change in GNP, whether up or down, usually has an effect on the stock market. In a bad economy, companies make lower profits, which in turn mean lower stock prices.

However, if the problem of decrease in the birth rate of children will increase at such a rapid rate, there is certainty that entrepreneurship of the countries will also suffer a lot. The older population generally does not favor the concept of entrepreneurship. They do, perform and join the old styles and form of business and careers. It is the young generation of every country who is more creative. ‘Creative’ means to make new ideas through your thoughts and then manifesting these thoughts into reality. It can be human innovation in the field of arts and science. Any new development which can be beneficial for the organization should be allowed to exist in the organization. So fewer young generation means decline in entrepreneurship also.

The global baby bust has also affected the relative attractiveness of different national markets. Consumers today are demanding low priced products with high quality; customers today look for quality, convenience and speed by which service is provided to them. This has lead to increase in the competitive environment in which a firm operates. For example one of the leading soft drink company, Britannia Soft Drink Ltd tiil mid 19^th century was one of the leading manufacturers of soft drink. But in the year 2002, it bought Orchard Drink and started producing energy drink( Kate, p- 98). The primary reason for the transition of the manufacturing options of the company is increasing demand of health drinks and energy drinks. So in one way the increasing the issue of baby bust among customers has led to this turbulence in the business world. Organizations around the globe can improve change efforts made by them using some practical, effective graphic metaphors as well as an organizational transition model for insuring employees understanding, and commitment towards the whole process of change. This means that the companies should guarantee their smooth sail through during their change voyage.

As more number of countries is getting rich day by day, the population of the country is getting aged and also the birthrate plunges. Moreover, this is happening not only in rich and more developed nations, the population of developing countries is also getting older speedily. This sudden fall in the birthrate may seem beneficial for the masses but it will hamper the economic growth as well as social development in the near future. Every government of the country should set up a separate branch for them and the officers working in them should make the online access a controlled activity. So after reading this paper one can clearly analyze that in present time, global baby bust is a major threat of the society. The right policies could help turn the tide, but only if enacted before it’s too late.