C H A P T E R
ANALYZING THE
MARKETING ENVIRONMENT
04
McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
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L E A R N I N G O B J E C T I V E S
Analyzing the Marketing Environment
LO1 Outline how customers, the company, competitors, and corporate partners affect marketing strategy.
LO2 Explain why marketers must consider their macroenvironment when they make decisions.
LO3 Describe the differences among the various generational cohorts.
LO4 Identify the various social trends.
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Analyzing the Marketing Environment
• Kimberly-Clark uses wood fiber from recycled sources or well-managed forestlands.
Courtesy of iStockphoto with design by Curran & Connors, Inc
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Successfully Leveraging Company Capabilities
Existing knowledge, facilities, patents, etc.
New markets, new products, etc.
Core competency
applied to
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Competitors
• Know strengths & weaknesses
• Proactive rather than reactive strategy
Chad Baker/Getty Images
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Kimberly-Clark: Pull-Ups (Huggies) versus Procter & Gamble: Easy-Ups (Pampers)
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Corporate Partners
From factory Retailer to
• Firms are part of alliances • Align with competitors, suppliers, etc. • Just in Time Delivery Systems (JIT)
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Culture
Country Culture vs. Regional Culture
©Brand X Pictures/PunchStock PhotoLink/Getty Images
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Demographics
Provides an easily understood snapshot of the typical consumer in a specific target market
U.S. Census Website
BananaStock/JupiterImages Comstock Images/Alamy
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Income
• Purchasing power is tied to income
• Many middle class families feel the decline in purchasing power in recent years
Courtesy of Hammacher Schlemmer, http://www.hammacher.com/
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Education
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Education is related to income, which determines spending power
©Fancy Photographer/Veer
Brand X Pictures
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Gender
Marketing has changed to reflect these shifts
Male/female roles have been shifting
Jochen Sand/Digital Vision/Getty Images
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Ethnicity
By 2050, minorities will represent 50% of the
population.
Bud Light Commercial ©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.
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Social Trends
Price Sensitivity
Health and Wellness Concerns
Greener Consumers
Privacy Concerns
Time-Poor Society
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Price Sensitivity
Consumers
Attempting to save more
Spend less on luxuries
Do not dip into their savings
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Health and Wellness Concerns
• Worldwide Pandemics or Epidemics
• Child-Teenage Obesity
Courtesy Subway Franchise Advertising Fund Trust
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Greener Consumers
Customers who appreciate firms
efforts to supply them with environmentally friendly merchandise.
Courtesy Ford Motor Company
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Privacy Concerns
Loss of privacy
Identity theft
Do not call
Do not e-mail Chad Baker/Ryan McVay/Getty Images
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Time Poor Society
In the majority of families, most parents work
Consumers have many more choices regarding leisure time
Many consumers multitask
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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
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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
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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