1. THE MARKETING ENVIRONMENT

2. THE MARKETING ENVIRONMENT
Culture (covered under International Marketing)
Demographics
Social
Technology
Economic
Political and Legal Factors

3. Some Things That Have Changed In Our Lifetime…
Widespread use of high speed, high bandwidth and wi-fi Internet access
Online shopping by mainstream consumers and individualized product recommendations
Movies streamed online rather than DVDs mailed or rented in stores
Spread of digital photography, “selfies”
Widespread use of cell phones
Smart phones replacing more limited scope cell phones
Emergence of social networking sites
GPS technology becoming available to consumers
Increased concerns about security (since 9/11/2001)

5. Japan: Actual and Projected Population Figures

6. China: Actual and Projected Population Figures

7. SOCIAL FACTORS Values—tensions
Value of privacy and security vs. convenience
“Green” products vs.
Cost
Convenience
Performance
“Component lifestyles”

8. Case: Hostess (Twinkies)
In 2011, Hostess, the manufacturer of Twinkies, was unable to negotiate a cost effective deal with its main union
This happened on top of a “triple whammy” that had hit packaged goods manufacturers:
Costs of ingredients had gone up due to increased costs of petroleum (needed for fertilizer, transportation, and processing)
A consolidation in the supermarket industry and the entry of Walmart’s supercenters had put downward pressure on wholesale prices
The recession had caused a number of customers who in the past bought national brand items to switch to store brands and lower tier brands.
In 2013, Hostess entered bankruptcy. The firm was sold off.

9. Ford Motor Co.
Historically, U.S. high schools have provided driver education. In many other countries, this has not been offered, so getting a driver’s license is more expensive and difficult.
With services such as Uber as a flexible and cost effective alternative, many younger people have less interest in driving their own cars
Fewer young people get driver’s licenses
As driver education learning has started to fade, passing the on-the-road-test later may be more difficult
Many young people today spend a significant amount of money on cell phones and service plains, significantly “draining” on the resources available to buy cars
To appeal to younger customers (and others), Ford has tried to add an increasing amount of technology to their cars, but so have competitors
Increased fuel prices and uncertainty on future prices reduce the attractiveness of owning a car

10. Case: Boeing
Possible increase in trade barriers
Political developments affect opportunities to sell to different countries (e.g., Iran)
Political changes in export assistance
Uncertainty about long term fuel prices
Under high fuel prices, the Boeing 787 can reduce costs
Under lower fuel costs, the A380 can reduce labor costs
Very long lead time in developing the next generation of planes
Fluctuating World economy can dramatically affect demand for new aircraft with very short notice
“Glut” of nearly new places available during global recessions
Long backlog in orders during prosperity