Fads, Trends and Megatrends

Information is a valuable commodity for any organisation to have; if it is usable. Marketing information is crucial as this dictates which direction an organisation should concentrate their efforts. “Marketing information system” (Kotler 2006: 73) should be developed from internal knowledge, marketing activities and market research such as fads, trends and megatrends (ibid). A fad as described by Kotler (2006) is “unpredictable, short-lived, and without social, economic, and political significance” (p. 77). A trend on the other hand, “is a direction or sequence of events that has some momentum and durability” (ibid). Kotler (ibid) goes on to say that unlike fads, trends are “predictable and durable” (ibid). Better still megatrends as described by Kotler (ibid) can be explained as “large-social, economic, political and technological changes” (ibid). However, megatrends are slow to form, but once they take place they can influence society for a period of seven to ten years or longer (ibid). In order to effectively market an organisation, those in the marketing fraternity such as Kotler (2006) suggest that organization’s and especially marketing managers need to be aware of the effects.

Megatrends
Listed below are ten of the megatrends “shaping the consumer landscape” as adapted by the American Demographics of Peter Francese’s ‘Top Trends of 2003’ as cited by Kotler (2006: 78);

• Ageing boomers
• Delayed retirement
• The changing nature of work.
• Greater educational attainment – especially among women
• Labour shortages
• Increased immigration
• Rising Hispanic influence
• Shifting birth trends
• Widening geographic differences
• Changing age structure

Boomers & Delayed retirement
According to Kotler (2006) there are 78 million people termed the baby boomers that are engrossed with their youth and not their age (p. 81). They also represent the largest contributor to consumer demands due to their sheer numbers (ibid). How does this affect the UK? As reported by Yaqoob (2004) in an article written in 2004, baby boomers in the UK also behave in the same manner as those in the US. The Sunday Times (2006) best describes this group as; “the generation that never grew up” (ibid). BBC News (2006) then goes on to say that the baby boomers now in their retirement age, refuse to do so and wish to work longer(ibid). However, according to research carried out by Heyday as cited by BBC News (2006), 24% of those surveyed from the UK baby boomer group were concerned that they did not save enough for their retirement.

Clearly this megatrend has a significant influence on many organizations and their marketing strategies, confirming the suggestions, that the baby boomer generation are still setting the standards and influencing society (MoneyWeek 2005 & BBC News 2004). As noted by Routers (2006) numerous organizations have increased their marketing activities in targeting this group for insurance (ibid). Furthermore, one has also noted a large number of organizations advertising skin products that make you look younger, sporting memberships, and holidays and so forth to fulfill the needs of this group, a view also shared by Yaqoob (2004). In addition to this, there are numerous television shows promoting the benefits of surgical improvements where one has noted the increase in number over the last few years. However, there could be drawbacks for many organizations as suggested by MoneyWeek (2004) suggesting that as the boomer generation retires, ramifications will be felt in the areas such as the stock markets when they start selling their shares.

Work, education, labour shortages and immigration
With advancements in technology, the nature in which work is carried out has changed from the more traditional to automated. More and more people in the UK aim for office type roles for its perceived relaxed atmosphere compared to that of a trade or manual labour. Educational institutes advertise the simplicity of changing careers in a matter of months. Equal opportunity rights have increased the number of woman in the professional arena bringing new ideas and different perspectives. This trend appears to be mostly influenced by those “dubbed Generation X” (Kotler 2006: 81) and those dubbed “Net-Gens” (ibid). In addition, immigration and globalization also appear to be on the rise with immigrant workers bringing with them motivation, adaptability and reliability (Dooyoo 2006). Immigrant workers are doing the jobs that native Brits don’t want to do (ibid). The downside to all this is that there has been too much focus on technology with fewer people paying attention to trades. As a consequence a shortage of trade’s people has occurred and technology is now cheaper. However, getting your house painted or plumbing fixed is very expensive.

Hispanic influences
Although there is no apparent Hispanic influence in the UK, there are many other ethnic groups in the UK which will affect the way some organizations trade. According to the Dooyoo (2006) there is a large number of Polish immigrants in the UK. There personal habits and spending trends will no doubt affect the manner in which products are produced and how advertising will be conducted to target this group as well as others.

Birth trends, geographic differences & changing age
As suggested by Kotler (2006) more and more woman are choosing to start their families in their mid thirties (p. 78). He goes on to say that when these women have children, they “have a higher spending power” (ibid). Evidence of this trend can also been seen here in the UK with government incentive luring women back into the workforce after having children. Yet as the British public ages rapidly and younger couples have children later in their years, companies focus on the benefits of working with organizations offering incentives such as paid maternity leave etcetera. Other organizations also target single twenty-somethings with slogans such as holidays with friends (Dooyoo 2006). Different generations such as twenty and thirty-somethings also form different age structures by spending more time and doing more activities together. This change in age structure could present a larger market for organisations selling products such as ipods to both the young and old.

Conclusion
There are many other examples and instances which one could use to illustrate some of the megatrends affecting society; however, there are not enough words to discuss it in this paper. Megatrends significance in the global arena of business and society is evident in every day life from what you see on the television, to what you hear on the radio or read in a news paper. Therefore, it is imperative for organisations, especially marketing managers and sales mangers to realise the implications of these events, as they will affect the habits of those they communicate with; the consumer.

References

BBC News (2004) Viewpoint: Britain’s ageing society [Online] Available from: http://news.bbc.co.uk/1/hi/uk/4003731.stm (Accessed 10 Sep 2006)

BBC News (2006) Boomers ‘want to work after 65’ [Online] Available from: http://news.bbc.co.uk/1/hi/uk/5019568.stm (Accessed 11 Sep 2006)

Dooyoo (2006) Immigration and asylum: Taking care of business baby, just taking care of business [Online] Available from: http://www.dooyoo.co.uk/discussion/immigration-and-asylum/1034979/ (Accessed 11 Sep 2006)

Kotler, P,. Keller, L. (2006) Marketing Management. 12th ed. New Jersey: Pearson Prentice Hall

MoneyWeek (2005) Will the baby-boomers sell-off cause a market slump? [Online] Available from: http://www.moneyweek.com/file/14447/will-the-baby-boomer-sell-off-cause-... (Accessed 11 Sep 2006)

Reuters (2006) Ageing baby boomers opens new markets for UK insurers [Online] Available from: http://in.today.reuters.com/news/newsArticle.aspx?type=businessNews&stor... (Accessed 11 Sep 2006)

The Sunday Times (2006) Busting the baby boomers [Online] Available from: http://www.timesonline.co.uk/article/0,,2088-2320321,00.html (Accessed 11 Sep 2006)

Yaqoob, T (2004) The baby boomers who refuse to act their age [Online] Available from: http://www.thisistravel.co.uk/travel/over55s/The-baby-boomers-whorefuset... (Accessed 11 Sep 2006)