MKT3010 1st Edition Lecture 4 Outline of Last Lecture I. Marketing Plan and The Marketing EnvironmentOutline of Current Lecture Demographic: General cohorts, Income, Education, Gender, EthnicitySocial trends: The green movement, privacy concerns, Time-poor society, Fair labor/wages, Price sensitivity/thrift, health and wellness concerns Technological advancesEconomic situation: affects buying and spendingPolitical/regulatory environment: components and implicationsCh. 6Consumer behaviorLow and high problem solving: low and highCurrent LectureJan. 22, 2015Chapter 5 Cont: MacroeconomicsDemographics- is there anything about a person’s age, gender, ethnicity, income, etc., that makes them buy a product: very superficial- Generational cohorts: baby boomers, Gen X, Gen Y- millenials, Gen Z: utilize nostalgia associatedwith that generation- Income: tied to purchasing power, marketing goes after discretionary income, middle class is in decline- Education: tied to income and occupation- Gender: Male/female roles- roles have been blurring in the United States and market place is adapting- Ethnicity: minorities increasing astronomically in U.S.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.-Social Trends- societal issues, values, concerns that help to shape our culture- The Green Movement- more people “going Green”- Privacy Concerns- How much info can the government access, etc- Time-Poor Society- marketers are moving towards “quick” products- Fair labor/wages- what is the impact of my purchase- Price sensitivity/thrift- people are being more price sensitive- Health and wellness concerns- like cookie monster now adding vegetables to his dietTechnological Advances- Improves value of products/serviceso New products, new forms of communication, new retail channelsEconomic Situation- Affects how consumers buy- Affects how money is spento Examples: Inflation, Unemployment, Interest rateso Altruism marketing: customers are scared to spend money (due to unemployment fears), so more companies added guarantees or promise programsPolitical/ Regulatory Environment- Components: Political parties, government organizations, Legislation and laws---how will all of these affect decision making in the marketing world- Implications: dictates legal competitive practices, consumer protection, industry specific regulationso Need to Know: 1890 Sherman Act, 1914 Clayton Act- both protect consumersCompany Capabilities Example: PepsiChairman & CEO: Indra K. Nooyi- Push for purchase of Quaker Oats and Tropicana- Recommended spinning off Taco Bell, KFC, and Pizza Huy- Healthy Flavors- “Natural”Chapter 6: Consumer Behavior ***Lots of vocab with this chapterConsumer Behavior- Sociology and psychology- Understand consumer actions- Develop basic strategies- Understand why people buy products or servicesTypes of Problem Solving- Degree of Involvemento Low-limited problem solving, not really a big deal, simple decisions Impulse- buy things on impulse Habitual- not think about buying because you buy it everytimeo High- more likely to go through a decision process Extended problem