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. Marketing Environment II. Immediate Environment III. Macro Environmental Factors Current LectureMarketing 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 capabilitieso 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 mightrefer 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 toidentify 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 groupspurchasing 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 consumerso 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