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CHAPTER

ANALYZING THE MARKETING ENVIRONMENT

5

Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

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L E A R N I N G O B J E C T I V E S

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.

Analyzing the Marketing Environment

LO1

LO2

LO3

LO4

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Travelodge

©Christopher Furlong/Getty Images News/Getty Images

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Macroenvironment

Culture Demographics

Social

TechnologyEconomic

Political/Legal

A Marketing Environment Analysis Framework

Immediate Environment

CorporatePartners

Competition

Company

Consumers

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The Immediate Environment

Immediate Environment

CorporatePartners

Competition

Company

Consumers

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Successfully Leveraging Company Capabilities

Existing knowledge, facilities, patents, etc.

New markets, new products, etc.

Core competency

applied to

©M

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by

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Competitors

Know strengths & weaknesses

Proactive rather than reactive strategy

Chad Baker/Getty Images

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Gillette (Fusion) versus Energizer (Schick)

©M. Hruby.

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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?

5-11

Macroenvironmental Factors

Culture Demographics

Political/Legal

TechnologyEconomic

Culture Consumers

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Culture

Country Culture vs. Regional Culture

©Brand X Pictures/PunchStock PhotoLink/Getty Images

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Controversy Surrounds All Catholic Town

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Demographics

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

U.S. CensusWebsite

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, www.hammacher.com.

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Education

Education is related to income, which determines spending power

=

©Fancy Photographer/VeerBrand X Pictures

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Gender

Jochen Sand/Digital Vision/Getty Images

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Ethnicity

By 2050, minorities will represent 50% of the

population.

©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.

Super Bowl XLI CommercialBud Light Starring: Carlos Mencia

5-20

Social Trends

Health and Wellness Concerns

Greener Consumers

Privacy Concerns

CelebrityMagazineCovers

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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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McDonald’s Moms

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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

Loss of privacy

Identity theft

Do not call

Do not e-mailChad Baker/Ryan McVay/Getty Images

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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

Rachael Ray

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Combined with inflation and interest rates affect firms’

ability to market goods and services

Economic Situation

Foreign currency fluctuations

ConferenceBoard Website

PhotoLink/Getty Images

Brand X Pictures

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Political/Regulatory Environment: Competitive Practice and Trade Legislation

1890: Sherman Antitrust Act

1914: Clayton Act

1914: Federal Trade Commission

1936: Robinson-Putman ActDavid 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. What are some important social trends shaping consumer values these days?