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.