MKTG 311 1st Edition Lecture 4 Outline of Last Lecture I. Diversification AnalysisII. Functional PlanIII. Organizational ForcesIV. Environmental ForcesA. Social ForcesOutline of Current Lecture I. Environmental ForcesA. Social ForcesB. Economic ForcesC. Technological ForcesD. Regulatory ForcesCurrent LectureI. Environmental ForcesA. Social Forces1. Trends(Geography): Movement from cities- suburbs- remote suburbs (exurbs)- smaller towns (penturbia)2. Movement from different parts of country- From NE- to west and south (particularly coastal areas)3. Education- Increase in H.S. Diplomas and increase in college degrees4. Occupation- Manufacturing decrease, increase white collar professional jobs, and increase in service industry5. Race/Ethnicity- Diverse market- 3 Largest ethnic groups: USo Hispanic American- by 2030, this market will comprise 22% of US consumer market will grow (50 million to 78 million)o African American- 49 milliono Asian American- Double to 24 million consumers- Characteristics of Hispanic American marketo Brand loyalty- they will buy American products if cater to their needso High concentrated by national origin (this is lessening- more on the west concentration)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.o More youthful market- Average age is 24 vs 33 (average age USconsumer)o Average household size is larger 3.5 people vs 2.7 people (US average)o Stronger focus on “family” less focus on “me” (Average US)- Social Forces as it relates to cultural changeo Characteristics in a society, people in that societyo Values, beliefs, preferences and behaviors.o Fewer gender distinctions in adv. particularly the millennial market. Example- Diesel be stupid campaignB. Economic Forces- Macroeconomic (market place as a whole)o Type of markets- Inflationary market (constant price increases)and Recessionary market (slow economic growth)o Consumer confidence- 2 measures: Consumer confidence index (conference board) and Index of consumer sentiment (University of Michigan)- 0-100 scaleo What are your current business outlooko Employment conditionso Expectations in 6 months: For business, employment, income?- Micro economy- Individual income and income distribution- how is income distributed across an economy.o 7 segments- Upper class (2), middle class (2- 2nd largest), working class (1- largest), upper class (2- Seniors limited income and welfare)o Gross income- the total income made in a year before taxeso Disposable income- money left over after taxes or necessities (clothing, food, transportation, and shelter)o Discretionary income- money that remains after taxes and necessities- for what we’d like to haveC. Technological Forces- brought about rapid change, has provided new markets and new opportunities in many industries.- Dramatic technological changes- Social networks, natural user interfaces (gesture, touch, and voice), green technologies in the area of energy, and Biotechnology (genetically modified crops)D. Regulatory Forces- Consist of- laws, pressure groups, and government agencies- Government agencies can influence or limit the role of individuals in society- There are laws and agencies that address each aspect of the 4P’s:o Product: Consumer Product Safety Act- established the consumer product safety commission. Maintenance minimum product safety standard.o Place/Distributions: Clayton Acto Price: Sherman Acto Promotion: Federal Trade Commission- limits deceptive (cease and desist order) or misleading advertising (connective