1. analyzing the marketing environment
five
analyzing
the marketing environment
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2. LEARNING OBJECTIVES
LO 5-1 Outline how customers, the company, competitors, and corporate partners affect marketing strategy. LO 5-2 Explain why marketers must consider their macroenvironment when they make decisions. LO 5-3 Describe the differences among the various generational cohorts. LO 5-4 Identify various social trends that affect marketing.

3. A Marketing Environment Analysis Framework
Macroenvironment
Culture
Demographics
Political/ Legal
Technology
Economic
Immediate Environment
Corporate Partners
Competition
Company
Consumers

4. The Immediate Environment
Corporate Partners
Competition
Company
Consumers

5. Successfully Leveraging Company Capabilities
Core competency
Existing knowledge, facilities, patents, etc.
applied to
©M Hruby
New markets, new products, etc.

6. Competitors Know strengths & weaknesses
Proactive rather than reactive strategy
Chad Baker/Getty Images

7. Corporate Partners Firms are part of alliances
Align with competitors, suppliers, etc.
Just in Time Delivery Systems (JIT)
D Normark/PhotoLink/Getty Images
Siede Preis/Getty Images
©Lars A Niki to
From factory
Retailer

8. What are the components of the immediate environment?

9. Macroenvironmental Factors
Culture
Demographics
Political/ Legal
Technology
Economic
Consumers

10. Culture Country Culture vs. Regional Culture
©Brand X Pictures/PunchStock
PhotoLink/Getty Images

11. Demographics
Provides an easily understood snapshot of the typical consumer in a specific target market
BananaStock/JupiterImages
Comstock Images/Alamy
U.S. Census Website

12. Generational Cohorts

13. Income Purchasing power is tied to income
Many middle class families feel the decline in purchasing power in recent years
Courtesy of Hammacher Schlemmer,

14. Education is related to income, which determines spending power=
©Fancy Photographer/Veer
Brand X Pictures
Education is related to income, which determines spending power

15. Gender Male/female roles have been shifting
Marketing has changed to reflect these shifts
Male/female roles have been shifting
Jochen Sand/Digital Vision/Getty Images

16. Ethnicity By 2050, minorities will represent 50% of the population.
©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.
Super Bowl XLI Commercial
Bud Light Starring: Carlos Mencia

17. Health and Wellness Concerns
Social Trends
Thrift
Health and Wellness Concerns
Greener Consumers
Privacy Concerns
Time-Poor Society
Celebrity Magazine Covers

18. Technological Advances
Technology has impacted every aspect of marketing
New products
New forms of communication
New retail channels
AP Photo/Ric Feld
Stop and Shop Website
Rachael Ray

19. Economic Situation Foreign currency fluctuations
Brand X Pictures
Combined with inflation and interest rates affect firms’ ability to market goods and services
PhotoLink/Getty Images
Conference Board Website

20. 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

21. What are the six key macroeconomic factors?
Differentiate between country culture and regional culture.
Identify the different generational cohorts.
What are some important social trends shaping consumer values and shopping behavior?

22. 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.

23. Glossary
Culture is the shared meanings, beliefs, morals, values, and customs of a group of people.

24. Glossary
Demographics indicate the characteristics of human populations and segments, especially those used to identify consumer markets.

25. Glossary
A generational cohort is a group of people of the same generation.

26. Glossary
The political/regulatory environment comprises political parties, government organizations, and legislation and laws.

27. Glossary
Regional culture involves the region in which people live in a particular country.