Socio Cultural Factors Affecting Business
Socio cultural factors have important influences in businesses today. These factors are about the attitudes and beliefs of consumers based on their preferences, environment, and social systems. Entrepreneurs must learn to closely monitor these socio cultural factors because they have a major impact on consumption of services and products. The following are some of the main socio cultural factors that affect businesses today:
Customs and religion
Some products may not be permissible in certain cultures. This may be because of religious beliefs and traditions that have been imbedded in a community’s culture for a long time. For instance in India consumption of beef and beef products is forbidden due to strong religious beliefs. Companies such as Macdonald’s have had to alter their menus and consider this socio cultural aspect when venturing into India.
The world is always evolving and trends in different businesses always change. This can be as a result of new trends, changes in technology and mindset. Ultimately changes in consumer’s tastes have an impact on businesses. If businesses do not keep up with and incorporate these changing preferences into their services, they risk losing important clients.
The communication and technology market is one of the ever changing businesses. Companies like Nokia have had to change some of their products to march trending applications and designs. Although such changes in preferences may cost a company a lot of money, it helps in retention of clients and can also attract new ones.
Demographics are all about the population and this influences businesses in the sense that it determines the market size and profits that companies make. A huge population provides a larger market for companies that want to venture into certain locations or countries.
In the recent past, countries like India and China have been popular destinations for investors. This is because they have billions of citizens who provide consumers for different products and services.
Marketing and advertisement
Marketing and advertisement is one of the essential aspects of every business. This is the only way a business can reach out to its clients. It is thus important for entrepreneurs to put a lot of effort into impressing the clients through advertisements.
Most companies prefer to have a healthy budget for advertisement and spend a lot of money to hire brand ambassadors who can come up with perfect advertisement ideas. Advertisement must be customized to suit the client age, preference and meet the company’s targets.
Moral and personal values
Many businesses have to make sure that their products are aligned to the moral and personal values of their clients. This may require setting high standards for employees and ensuring that those who manufacture products are well taken care of. A company like Mary Kay cosmetics has gotten good client reviews because of how staffs are treated. On the other hand some American companies have irked their clients by using child labour in their foreign franchises. Exercising moral values that appeal to the clients can help in retention of customers.