1. 2c-1 Professor Takada The Marketing Environment 2 Cont

2. 2c-2 Professor Takada Environmental forces that affect the company ’ s ability to serve its customers. –Demographic environment. –Economic environment. –Natural environment. –Technological environment. –Political environment, and –Cultural environment. How companies can react to the marketing environment. ROAD MAP: Previewing the Concepts

3. 2c-3 Professor Takada 10 Megatrends Shaping the Consumer Landscape Aging boomers Delayed retirement Changing nature of work Greater educational attainment Labor shortages Increased immigration Shifting birth trends Widening geographic differences Changing age structure

4. 2c-4 Professor Takada Environmental Forces Demographic EconomicPolitical-Legal Socio-CulturalTechnological Natural

5. 2c-5 Professor Takada Population and Demographics Size Growth rate Age distribution Ethnic mix Educational levels Household patterns Regional characteristics Movement

6. 2c-6 Professor Takada Mattel Markets in China

7. 2c-7 Professor Takada Population Age Groups Preschool School-age Teens 25-40 40-65 65+

8. 2c-8 Professor Takada Schwab’s Chinese-language Web site

9. 2c-9 Professor Takada Household Patterns

10. 2c-10 Professor Takada Economic Environment $ Purchasing Power $ Income Distribution $ Savings Rate $ Debt $ Credit Availability

11. 2c-11 Professor Takada Types of Industrial Structures Industrial economies Subsistence economies Raw-material- exporting economies Industrializing economies

12. 2c-12 Professor Takada India – An Industrializing Economy

13. 2c-13 Professor Takada Saudi Arabia – A Raw-Material Exporting Economy

14. 2c-14 Professor Takada The Gap “look” is recognizable everywhere

15. 2c-15 Professor Takada Social-Cultural Environment Views of themselves Views of others Views of nature Views of organizations Views of society Views of the universe

16. 2c-16 Professor Takada Most Popular American Leisure Activities: How about in Japan? Walking Gardening Swimming Photography Bicycling Fishing Bowling Camping Jogging Free weights Golf Continuing education

17. 2c-17 Professor Takada Natural Environment Shortage of raw materials Increased energy costs Anti-pollution pressures Governmental protections

18. 2c-18 Professor Takada Technological Environment Pace of change Opportunities for innovation Varying R&D budgets Increased regulation of change

19. 2c-19 Professor Takada Political-Legal Environment Increase in business legislation Growth of special interest groups

20. 2c-20 Professor Takada Unit Pricing on Store Shelves

21. 2c-21 Professor Takada Marketing Debate Take a position: 1. Age differences are fundamentally more important than cohort effects. 2. Cohort effects can dominate age differences.

22. 2c-22 Professor Takada Marketing Discussion What brands do you feel successfully speak to you? Effectively target your age group? Why? Which ones do not?