C H A P T E R ANALYZING THE 04 MARKETING ENVIRONMENTbs210.wikispaces.com/file/view/Chap004.pdf · Analyzing the Marketing Environment ... Llc and are licensed to Wendy’s International,

C H A P T E R

ANALYZING THE

MARKETING ENVIRONMENT

04

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

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

Analyzing the Marketing Environment

LO1 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.

LO2 Explain why marketers must consider their macroenvironment when they make decisions.

LO3 Describe the differences among the various generational cohorts.

LO4 Identify the various social trends.

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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

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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.

New markets, new products, etc.

Core competency

applied to

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Competitors

• Know strengths & weaknesses

• Proactive rather than reactive strategy

Chad Baker/Getty Images

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

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Corporate Partners

From factory Retailer to

• 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

©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. Census Website

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, http://www.hammacher.com/

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Education

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Education is related to income, which determines spending power

©Fancy Photographer/Veer

Brand X Pictures

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Gender

Marketing has changed to reflect these shifts

Male/female roles have been shifting

Jochen Sand/Digital Vision/Getty Images

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Ethnicity

By 2050, minorities will represent 50% of the

population.

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.

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Social Trends

Price Sensitivity

Health and Wellness Concerns

Greener Consumers

Privacy Concerns

Time-Poor Society

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Price Sensitivity

Consumers

Attempting to save more

Spend less on luxuries

Do not dip into their savings

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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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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-mail Chad Baker/Ryan McVay/Getty Images

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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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McDonald’s Moms

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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

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

Economic Situation

Foreign currency fluctuations

Conference Board 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 Act

1938: Wheeler-Lea Act

1993: North American Free Trade Agreement (NAFTA) David 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. Identify the different generational cohorts.

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