Mark 3000 1st Edition Lecture 3 Outline of Last Lecture I Ethics and Laws II Framework for ethical decision making a Types of Norms III Levels of Responsibility Outline of current Lecture I II III Marketing Environment Immediate Environment Macro Environmental Factors Current Lecture Marketing environment includes the uncontrollable environments outside of any organization that may affect its performance Environmental scanning is the systematic analysis of those elements The centerpiece is always consumers they may be directly influenced by actions of the company or competitors Value based marketing aims to provide greater value to consumers than competitors offer The Immediate environment Company capabilities o The first factor that affects the consumers is the firm itself o Focus is on satisfying customer needs that match core competencies Corporate Partners o Includes the parties that work with the firm Macro environmental Factors External factors Culture Shared meanings beliefs morals values and customs of a group of people o Learned over time and passed down from generation to generation o Country culture visible nuances include artifacts behavior dress symbols etc o Regional culture affects many aspects of people s life such as the way they might refer to a particular product category Etc soda pop These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Demographics indicates the characteristics of human populations and segments used to identify consumer markets o Ex Age gender race o Generational cohort group of people of the same generation that have similar purchase behaviors because they have shared experiences and are in the same stage of life Ex Baby boomers and casual lifestyle Generation Z 2001 to 2014 also known as digital natives because they are born into a world that already was full of electronic gadgets and digital technologies Like videogames and develop affinity for same brands such as parents Different attitudes have better access to information Generation Y Millennial 1977 2000 the Biggest cohort Entering the workforce so it is becoming apparent that they have different expectations and requirements than others Strong balance on work and life Wide range of lifestyles Diverse time managers identify with brands Generation x 1965 1976 First generation of latchkey children both parents worked Fewer in numbers than baby boomers and Generation Y Have considerable spending power More knowledgeable about products and more risk averse Baby boomers Born after WWII 1946 1964 Largest population of 50 plus consumers the US has ever seen Individualistic and leisure time is a high priority Believe that they will always take care of themselves and obsession with maintain youth More affected on quality than price Heavy internet users and do research before purchasing Income There is an increase in wealthy families and lower income groups purchasing power keeps declining Education Higher levels of education lead to higher incomes Gender Male female roles have been burred Firms are careful about gender neutrality and attempt to transcend gender boundaries Ethnicity 80 of the population growth in the next 20 years will come from Black Hispanic and Asian communities Hispanics are minimally influenced by advertising and different Hispanics have different promotion techniques African Americans are growing more affluent and moving to the suburbs Asian Americans are the fastest growing minority population Social trends shape consumer values Thrift The recession has prompted many people to spend less o Expectations of what constitutes a good deal keep changing Health and wellness concerns Health concerns have been widespread in the US o New guidelines require marketers to provide nutritional value of the food Greener consumers o Greener marketing involves a strategic effort by firms to supply consumers with environmentally friendly merchandise o Green washing exploiting a consumer by marking products as environmentally friendly with the goal on improving sales Privacy concerns There has been an explosion of accessibility to consumer information and this has led to a more and better security and credit check services Time poor society Since both parents usually work and kids are business than ever it is hard to reach the target market Technological advances has led to improved value of products and services Increase in apps web streaming services and better connection with consumers Economic situation affects the way consumers buy merchandise and spend money Inflation refers to the persistent increase in prices of goods and services Foreign currency fluctuations are changes in the value of a country s currency relative to another country Interest rates cost of borrowing money Political environment political parties government organization and legislation Legislation is enacted to protect consumers in a variety of ways