Chapter 4 MKTG6

8/14/2019 Chapter 4 MKTG6

1/36

Chapter 1 Copyright 2012 by Cengage Learning Inc. All rights reserved 1

Lamb, Hair, McDaniel

CHAPTER 4

The MarketingEnvironment

2012-2013

M

arkH

erreid/Shutterstock.com

1

iStokphoto.com/S

inia

Bota


2/36

Target Market

A defined group most likely to buy a product

Changes as consumers age

External elements change consumers

desires

2 2013 by Cengage Learning Inc. All Rights Reserved. 1


3/36

The External Environment

Unless marketing managers understand theexternal environment, the firm cannot

intelligently plan for the future.

when a company implements strategiesthat attempt to shape the external

environment within which it operates.

Env ironmental Managementis



4/36

Social Factors

Values

Attitudes

Lifestyle



5/36

American Values

Self-Sufficiency

Upward Mobility

Work Ethic

Conformity

Core AmericanValues

Getting off the grid

Meaningful green

EcoTechMed


Emerging Trends


6/36

Component Lifestyles

The practice of choosing goods and

services that meet ones diverse needs

and interests rather than conforming toa single, traditional lifestyle.

Todays consumers want multifunctional products

No longer defined only by occupation



7/36

Role of Families and Working Women

Growth of dual-income families results inincreased purchasing power

Approximately 59percent of work-agefemales are in the workforce

Working wives bring in 45percent of thetotal family earnings.

The phenomenon of working women hasprobably had a greater effect on marketingthan any other social change.



8/36

Technology and Time Use

Leisure time accounts for less than 6hours a day

About 40percent of American adultscheck work email on vacation

Constant digital immersion can

decrease a persons attention span.



9/36

Demographic Factors

People are the basis for any market

Demographic characteristics relate to buyer

behavior Demographic cohorts have their own

needs, values, and consumption patterns.



10/36

Tweens

Pre- and early adolescents, age8 to 12

Population of 20million

Directly spend about $50billion annually

Parents spend $150billion on tweensannually

View TV ads as just advertising



11/36

Teens

Population of about 25million

Spend approximately 72hours per week

tuned in electronically View shopping as a social sport

50million teens around the world are on

Facebook



12/36


13/36

Generation X

Born between 1965 and 1978


Independent, resilient, adaptable,cautious, and skeptical

71percent have children under age 18

Home ownership is an important goal Avid buyers of the latest clothes,

technology, and recreational products



14/36

Baby Boomers



Working longer to compensate foreconomic downturn, which affectedretirement savings

The market of services directed at seniorsis one of the fastest growing businessmarkets



15/36

Seniors

Pre-Depression

Born before 1930

12 million Americans

Depression


28 million Americans


16/36

How to Targetthe Mature Market

People over 55 span 3 generations

Gerontographics

Healthy Indulgers

Ailing Outgoers

Healthy Hermits

Frail Recluses


17/36

Growing Ethnic Markets

Estimated purchasing power of ethnicmarkets in 2013:

Hispanics: $1.5 trillion

African Americans: $1.2 billion Asian Americans:$775 billion

The minority population of the United States

in 2011 reached 110 million.



18/36

Marketing toHispanic Americans

The Hispanic populations diversity creates

challenges for targeting this market.

12million Hispanics aged 20-34in the UnitedStates

94percent of U.S. Hispanics have homeInternet access.

Highly responsive to new media: mobilemarketing and social media marketing



19/36

Marketing toAfrican Americans

47percent are between 18and 49years old

More firms are creating productsfor the African American market.

Promotional dollars and mediachoices directed toward AfricanAmericans continue to increase.



20/36

Marketing toAsian Americans

Younger, better educated, and have highestaverage income of all groups

Early adopters of latest digital gadgets.

Cultural diversity within the Asian Americanmarket complicates promotional efforts.



21/36

Marketing to Gay and LesbianConsumers

Aprox. 7% of adult US population, 15.3million people

Purchase Power $723 billion

Many companies find this an attractivesegment

Product and communication issues aremajor considerations


22/36

Product and CommunicationIssues for GLBT

Does the product need to be modified to meetthe needs of this market?

Should the firm advertise in gay-oriented

media using its standard ads? Should it advertise in gay media with gaythemes?

To what extent should the firm be involved in

gay community activities? Should its ads in mainstream media include

gay themes?


23/36

Economic Factors

Purchasing

Power

Inflation

Recession

ConsumersIncome



24/36

Consumers Incomes

Median U.S. household incomein 2010 was approximately$50,000.

Incomes have risen at a slow pacein recent years.

Education is the primarydeterminant of earning potential.



25/36

a comparison of income

versus the relative cost of a setstandard of goods andservices in different

geographic areas.

Purchasing Power is



26/36

a measure of the decrease in

the value of money, expressedas the percentage reduction invalue since the previous year.


Inf lat ion is


27/36

a period of economic activity

characterized by negativegrowth, which reducesdemand for goods and

services.


Recession is


28/36

Research

Basic Research

Applied Research

Pure research that aims toconfirm an existing theory or tolearn more about a concept

phenomenon.

An attempt to develop new orimproved products



29/36

Political and Legal Factors

New technology

Society

Businesses

Consumers

Laws and Regulations Protect:



30/36

Federal Legislation

Sherman Act Clayton Act Federal Trade Commission Act Celler-Kefauver Antimerger Act

Hart-Scott-Rodino Act Foreign Corrupt Practices Act

Regulate

competi t ive

environment

Robinson-Patman ActRegulate

pr ic ing

pract ices

Wheeler-Lea ActContro l

false

advert is ing



31/36

State Laws

Legislation that affects marketing variesstate by state. Oregon: limits utility advertising to 0.5 percent of

net income.

California: bans trans fats in restaurants andbakeries.



32/36

Regulatory Agencies

ConsumerProduct SafetyCommission

Federal TradeCommission

Food & DrugAdministration

Protects consumer safety inand around their homes

Prevents unfair methods ofcompetition in commerce

Enforces safety regulations forfood and drug products



33/36

Bureaus of the FTC

Reviews mergers and acquisitionsChallenges anti-competitive conductPromotes competition

Provides information

Enforces federal laws that protectconsumersEmpowers consumers with information

Communicates with consumers aboutfraud and identity theft

Bureau ofCompetition

Bureau ofConsumer

Protection



34/36

Consumer Privacy

CAN-SPAM Act

Childrens Online Privacy Protection Act

Rule

Government Actions



35/36

Competitive Factors

How many competitors?

How big are competitors?

How interdependent isthe industry?

Control



36/36

Competitive Factors

Competition forMarket Share

and Profits

Firms must workharder to maintainprofits and marketshare.

GlobalCompetition

More foreign firmsare entering U.S.market.

Foreign firms inU.S. now competeon product quality.

36 2013 by Cengage Learning Inc All Rights Reserved 8

Chapter 4 MKTG6

Documents

Transcript of Chapter 4 MKTG6