1. 5-1 CHAPTER ANALYZING THE MARKETING ENVIRONMENT 5

2. 5-2 LEARNING OBJECTIVES Outline how customers, the company, competitors, and corporate partners affect marketing strategy. Explain why marketers must consider their macroenvironment when they make decisions. Describe the differences among the various generational cohorts. Identify various social trends that impact marketing. Analyzing the Marketing Environment LO1 LO2 LO3 LO4

3. 5-3 Macroenvironment CultureDemographics Social TechnologyEconomic Political/ Legal A Marketing Environment Analysis Framework Immediate Environment Corporate Partners Competition Company Consumers

4. 5-4 The Immediate Environment Immediate Environment Corporate Partners Competition Company Consumers

5. 5-5 SWOT Analysis

6. 5-6 Successfully Leveraging Company Capabilities Existing knowledge, facilities, patents, etc. New markets, new products, etc. Core competency applied to ©M Hruby

7. 5-7 Competitors  Know strengths & weaknesses  Proactive rather than reactive strategy Chad Baker/Getty Images

8. 5-8 Corporate Partners From factory Retailer to 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

9. 5-9 CHECK YOURSELF 1.What are the components of the immediate environment?

10. 5-10 Macroenvironmental Factors CultureDemographics Political/ Legal TechnologyEconomic Culture Consumers

11. 5-11 Culture Country CultureCountry Culture vs. Regional CultureRegional Culture ©Brand X Pictures/PunchStockPhotoLink/Getty Images

12. 5-12 Demographics Provides an easily understood snapshot of the typical consumer in a specific target market U.S. Census Website BananaStock/JupiterImages Comstock Images/Alamy

13. 5-13 Generational Cohorts

14. 5-14 Income  Purchasing power is tied to income  Many middle class families feel the decline in purchasing power in recent years Courtesy of Hammacher Schlemmer, www.hammacher.com.www.hammacher.com

15. 5-15 Education Education is related to income, which determines spending power = ©Fancy Photographer/Veer Brand X Pictures

16. 5-16 Gender Marketing has changed to reflect these shifts Male/female roles have been shifting Jochen Sand/Digital Vision/Getty Images

17. 5-17 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

18. 5-18 Social Trends Health and Wellness ConcernsGreener ConsumersPrivacy Concerns Celebrity Magazine Covers

19. 5-19 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 Rachael Ray

20. 5-20 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

21. 5-21 CHECK YOURSELF 1.What are the six key macroenvironmental factors? 2.Differentiate between country culture and regional culture. 3.What are some important social trends shaping consumer values these days?

22. 5-22 Return to slide 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. Glossary

23. 5-23 Return to slide Culture is the shared meanings, beliefs, morals, values, and customs of a group of people. Glossary

24. 5-24 Return to slide Demographics indicate the characteristics of human populations and segments, especially those used to identify consumer markets. Glossary

25. 5-25 Return to slide A generational cohort is a group of people of the same generation. Glossary

26. 5-26 Return to slide The political/regulatory environment comprises political parties, government organizations, and legislation and laws. Glossary

27. 5-27 Return to slide Regional culture involves the region in which people live in a particular country. Glossary