CHAPTER

ANALYZING THEMARKETING ENVIRONMENT

04

McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

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LEARNING OBJECTIVES

Analyzing the Marketing Environment

LO1Outline how customers, the company, competitors, and corporate partners affect marketing strategy.

LO2Explain why marketers must consider their macroenvironment when they make decisions.

LO3Describe the differences among the various generational cohorts.

LO4Identify the various social trends.

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A Marketing Environment Analysis Framework

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The Immediate Environment

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Successfully Leveraging Company Capabilities

Existing knowledge, facilities, patents, etc.

Existing knowledge, facilities, patents, etc.

New markets, new products, etc.

New markets, new products, etc.

Core competencyCore competency

applied to

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Competitors

• Know strengths & weaknesses

• Proactive rather than reactive strategy

Chad Baker/Getty Images

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Corporate Partners

From factory Retailerto

• Firms are part of alliances• Align with competitors, suppliers, etc.• Just in Time Delivery Systems (JIT)

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Check Yourself

1. What are the components of the immediate environment?

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Macroenvironmental Factors

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Culture

Country Culture vs. Regional Culture

©Brand X Pictures/PunchStock PhotoLink/Getty Images

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Demographics

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

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

U.S. Census Website

BananaStock/JupiterImages Comstock Images/Alamy

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Generational Cohorts

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Income

• Purchasing power is tied to income

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

Courtesy of Hammacher Schlemmer, http://www.hammacher.com/

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Education

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Education is related to income, which determines spending power

Education is related to income, which determines spending power

©Fancy Photographer/Veer

Brand X Pictures

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Gender

Jochen Sand/Digital Vision/Getty Images

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Ethnicity

Bud Light Commercial

©2006 Oldemarak, LLC Reprinted with permission The Wendy’s name, design and logo are registered trademarks of Oldemark, Llc and are licensed to Wendy’s International, Inc.

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Social Trends

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Price Sensitivity

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Health and Wellness Concerns

• Worldwide Pandemics or Epidemics• Child-Teenage Obesity

Courtesy Subway Franchise Advertising Fund Trust

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Greener Consumers

Customers who appreciate firms efforts to supply

them with environmentally

friendly merchandise.

Courtesy Ford Motor Company

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Privacy Concerns

Chad Baker/Ryan McVay/Getty Images

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Time Poor Society

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Technological Advances

• Technology has impacted every aspect of marketing– New products– New forms of

communication– New retail

channels

Stop and Shop Website

AP Photo/Ric Feld

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Political/Regulatory Environment: Competitive Practice and Trade

Legislation

David Hiller/Getty Images

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Check Yourself

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?