chapter 04 mkt120 mkt environment

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LEARNING OBJECTIVES

Learning Objectives

How do customers, the company, competitors, and corporate partners affect marketing strategy?

Why do marketers have to think about their macroenvironment when they make decisions?

How do corporate social responsibility programs help various stakeholders?

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Analyzing the Marketing Environment

Earth Rewards credit card expects $20 billion in green sales by 2010

MyEarthRewards.com Website

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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 and Competitive Intelligence

Competitive Intelligence (CI)

Proactive rather than reactive strategy

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Gillette vs. Schick

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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

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Demographics

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

U.S. Census Website

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Generational Cohorts

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Seniors, Boomers and X and Y’ers

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Income

Purchasing power is tied to income

Census bureau tracks income

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

$1,995.95 from Hammacher Schlemmer

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Education

=

Education is related to income, which determines spending power

Education is related to income, which determines spending power

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Gender

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Ethnicity

Bud Light Commercial

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Social Trends

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Greener Consumers

Customers who appreciate firms efforts to supply

them with environmentally

friendly merchandise.

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Targeting Kids: Is it wrong?

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Privacy Concerns

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Time Poor Society

In the majority of families, most parents work

Consumers have many more choices regarding leisure time

Many consumers multitask

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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

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Combined with inflation and interest rates affect firms’ ability to market

goods and services

Combined with inflation and interest rates affect firms’ ability to market

goods and services

Economic Situation

Foreign currency fluctuations

Foreign currency fluctuations

Conference Board Website

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Political/Regulatory Environment: Competitive Practice and Trade Legislation

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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 key dimension is used to classify an individual into a given cohort?

5. What are some important social trends shaping consumer values these days?

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Corporate Social Responsibility

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What are customer’s concerns?

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The Output for Companies

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Check Yourself

1. How has corporate social responsibility evolved since the turn of the 20thCentury?

2. Identify the inputs and outputs of the corporate social responsibility framework?

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Glossary

Firms use competitive intelligence (CI) to collect and synthesize information about their position with respect to their rivals.

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Glossary

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.

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Glossary

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

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Glossary

Demographics indicate the characteristics of human populations and segments, especially those used to identify consumer markets.

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Glossary

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

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Glossary

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

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Glossary

Regional culture involves the region in which people live in a particular country.

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