CHAPTER

Day 6

BUS 222

Ch 1 -2

Agenda• Class roll call• Questions• Assignment 1 DUE

• Assignment 2 posted– Due Feb 15 @ 9:30 AM– Marketing Assignment 2.pdf

• Quiz 1 on Feb 15– Chaps 1-4, 20 M/C. One hour time limit– Open Book, Open Notes, NO electronic devices– 5 points extra credit question on Super Bowl Ads

• Begin Analyzing the Market Environment

CHAPTER

ANALYZING THEMARKETING ENVIRONMENT

04

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

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.

Analyzing the Marketing Environment

• Kimberly-Clark uses wood fiber from recycled sources or well-managed forestlands.

Courtesy of iStockphoto with design by Curran & Connors, Inc

A Marketing Environment Analysis Framework

The Immediate Environment

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 their strengths & weaknesses

• Develop proactive rather than reactive strategy

Chad Baker/Getty Images

Kimberly-Clark: Pull-Ups (Huggies) versus Procter & Gamble: Easy-Ups (Pampers)

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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?

Macroenvironmental Factors

Culture

Country Culture vs. Regional Culture

©Brand X Pictures/PunchStock PhotoLink/Getty Images

Controversy Surrounds All Catholic Town

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

Generational Cohorts

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/

Education

=

Education is related to income, which determines spending power

Education is related to income, which determines spending power

©Fancy Photographer/Veer

Brand X Pictures

Degrees and earnings

Hard Times.pdf

Gender

Jochen Sand/Digital Vision/Getty Images

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.

Social Trends

Price Sensitivity

Health and Wellness Concerns

• Worldwide Pandemics or Epidemics– SARS– Bird Flu– H1N1

• Child-Teenage Obesity• Adult onset diabetes

Courtesy Subway Franchise Advertising Fund Trust

Greener Consumers

Customers who appreciate firms efforts to supply

them with environmentally

friendly merchandise.

Courtesy Ford Motor Company

Privacy Concerns

Chad Baker/Ryan McVay/Getty Images

Time Poor Society

McDonald’s Moms

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

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 fluctuationsForeign currency fluctuations

Conference Board Website

PhotoLink/Getty Images

Brand X Pictures

Political/Regulatory Environment: Consumer Protection

http://www.androidpit.com/mobile-device-privacy-act

Political/Regulatory Environment: Competitive Practice and Trade

Legislation

David Hiller/Getty Images

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?