© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

4-2 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 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?

4-3 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Analyzing the Marketing Environment Earth Rewards credit card expects $20 billion in green sales by 2010 MyEarthRewards.com Website

4-4 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin A Marketing Environment Analysis Framework

4-5 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The Immediate Environment

4-6 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Successfully Leveraging Company Capabilities Existing knowledge, facilities, patents, etc. New markets, new products, etc. Core competency applied to

4-7 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Competitors and Competitive Intelligence Competitive Intelligence Competitive Intelligence (CI) Proactive rather than reactive strategy

4-8 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Gillette vs. Schick

4-9 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Corporate Partners From factory Retailer to Firms are part of alliances Align with competitors, suppliers, etc. Just in Time Delivery Systems (JIT)

4-10 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Check Yourself 1. What are the components of the immediate environment?

4-11 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Macroenvironmental Factors

4-12 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Culture Country CultureCountry Culture vs. Regional CultureRegional Culture

4-13 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Demographics Provides an easily understood snapshot of the typical consumer in a specific target market U.S. Census Website

4-14 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Generational Cohorts

4-15 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Seniors, Boomers and X and Y’ers

4-16 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 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, from Hammacher Schlemmer

4-17 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Education = Education is related to income, which determines spending power

4-18 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Gender Marketing has changed to reflect these shifts Male/female roles have been shifting

4-19 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Ethnicity By 2050, minorities will represent 50% of the population. Bud Light Commercial

4-20 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Social Trends Greener Consumers Marketing to Children Privacy ConcernsTime-Poor Society

4-21 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Greener Consumers Customers who appreciate firms efforts to supply them with environmentally friendly merchandise.

4-22 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Targeting Kids: Is it wrong?

4-23 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Privacy Concerns Loss of privacyIdentity theftDo not callDo not

4-24 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Time Poor Society In the majority of families, most parents work Consumers have many more choices regarding leisure time Many consumers multitask

4-25 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Technological Advances Technology has impacted every aspect of marketing  New products  New forms of communication  New retail channels Stop and Shop Website

4-26 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Combined with inflation and interest rates affect firms’ ability to market goods and services Economic Situation Foreign currency fluctuations Conference Board Website

4-27 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Political/Regulatory EnvironmentPolitical/Regulatory Environment: Competitive Practice and Trade Legislation 1890: Sherman Antitrust Act1914: Clayton Act1914: Federal Trade Commission1936: Robinson-Putman Act1938: Wheeler-Lea Act 1993: North American Free Trade Agreement (NAFTA)

4-28 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 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?

4-29 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Corporate Social Responsibility

4-30 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin What are customer’s concerns?

4-31 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The Output for Companies

4-32 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 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?

4-33 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary Firms use competitive intelligence (CI) to collect and synthesize information about their position with respect to their rivals. Return to slide

4-34 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 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. Return to slide

4-35 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary Culture is the shared meanings, beliefs, morals, values, and customs of a group of people. Return to slide

4-36 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary Demographics indicate the characteristics of human populations and segments, especially those used to identify consumer markets. Return to slide

4-37 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary A generational cohort is a group of people of the same generation. Return to slide

4-38 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary The political/regulatory environment comprises political parties, government organizations, and legislation and laws. Return to slide

4-39 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary Regional culture involves the region in which people live in a particular country. Return to slide