BMGT 205: Chapter 5Analyzing the

Marketing Environment

Learning Objectives

Outline how customers, the company, competitors, and corporate partners affect marketing strategy. !Explain why marketers must consider their macroenvironment when they make decisions. !Describe the differences among the various generational cohorts. !Identify various social trends that impact marketing.

LO1

LO2

LO3

LO4

A Marketing Environment Analysis Framework

Macroenvironment

Culture Demographics

Political/Legal

TechnologyEconomic

Social Trends

Immediate Environment

CorporatePartners

Competition

Company

Consumers

A Marketing Environment Analysis Framework

Immediate Environment

CorporatePartners

Competition

Company

Consumers

Successfully Leveraging Company Capabilities

Existing knowledge, facilities, patents, etc.

New markets, new products, etc.

Core competency

applied to

Aqaufina Launches

Flavorsplash Targeting

Teenshttp://adage.com/article/cmo-strategy/

aquafina-introduces-products-targeting-teens/244473/

Competitors

Know strengths & weaknesses

Proactive rather than reactive strategy

Corporate Partners

Firms are part of alliances

Align with competitors, suppliers, etc.

Just in Time Delivery Systems (JIT)

From factory Retailerto

Soap and Diapers . com (Quidsi, Inc)http://www.youtube.com/watch?

v=6zXOW6v0c8s

CHECK YOURSELF

1. What are the components of the immediate environment?

Macroenvironmental Factors

Culture Demographics

Political/Legal

TechnologyEconomic

Social Trends/Issues Consumers

1. Culture

Country Culture vs. Regional Culture

2. Demographics

Provides an easily understood snapshot of the typical consumer in a specific target market

Generational Cohorts

The Greatest Generation, Born 1901-1924 (early) 1924-1943 (later):  Grew up, and frequently were defined by their experiences growing up, during The Great Depression and World War 2.

Baby Boomers, 1946-1964: They're rapidly getting older and retiring, and not all of them have saved up enough to be able to do so. The fact that many in this generation led the institutions that caused the current financial crisis didn't help. 

Gen X, 1965-1981: Gen Xers are more likely to be independent and value their own career over organizations. They value autonomy and freedom at their jobs, and are not as work-centric as older generations. 

Millennials, 1982 - 2004: Grew up during a time of economic prosperity, then many entered the workforce during a recession. Surrounded by the rapid advance of technology, particularly the Internet.

http://www.census.gov/acs/www/

Income

Purchasing power is tied to income

Many middle class families feel the decline in purchasing power in recent years

Education

Education is related to income, which determines spending power

Gender

Male/female roles have been shifting

Marketing has changed to reflect these shifts

The Changing American Familyhttp://familiesproject.bettycrocker.com

Ethnicity

By 2050, minorities will represent 50% of the population.

3. Social Trends

Thrift Health and Wellness Concerns Greener Consumers

Privacy Concerns Time-Poor Society

Additional Trend: Sharing

4. Political/Regulatory Environment: Competitive Practice and Trade

Legislation

Sherman: Protected against monopolies and anti competition

Clayton: Supplemented Sherman, and included pricing protection

FTC: Principle Mission is to Protect Consumers

1890: Sherman Antitrust Act

1914: Clayton Act

1914: Federal Trade Commission

1936: Robinson-Putman Act

1938: Wheeler-Lea Act

1993: North American Free Trade Agreement (NAFTA)

4. Political/Regulatory Environment: Competitive Practice and Trade

Legislation

Robinson-Putnan: Price Descimination

Wheeler-Lea: Further Protection to Consumers, including protection from deceptive ads

NAFTA: Eliminated Barriers of Trade between the US, Canada, and Mexico

1890: Sherman Antitrust Act

1914: Clayton Act

1914: Federal Trade Commission

1936: Robinson-Putman Act

1938: Wheeler-Lea Act

1993: North American Free Trade Agreement (NAFTA)

5. Economic

Economic

6. Technology

1. What are the six key macroeconomic factors?

2. Differentiate between country culture and regional culture.

3. Identify the different generational cohorts. 4. What are some important social trends

shaping consumer values these days?

Key Terms to Know

Key Terms

Country culture involves visual nuances of a country’s culture such as artifacts, behavior, dress, symbols, physical settings, ceremonies, language differences, colors and tastes, and food preferences, as well as language.

Culture is the shared meanings, beliefs, morals, values, and customs of a group of people.

Key Terms

Demographics indicate the characteristics of human populations and segments, especially those used to identify consumer markets.Culture is the shared meanings, beliefs, morals, values, and customs of a group of people.

A generational cohort is a group of people of the same generation.

The political/regulatory environment comprises political parties, government organizations, and legislation and laws.