MKTG 350 1st Edition Lecture 4Outline of Current Lecture Current LectureAnalyzing the Marketing EnvironmentFramework for marketing environment Consumer- every thing the company does they should be focused on the consumerImmediate Environment 1. Company—Successfully leveraging company capabilities a. Core competencyb. Existing knowledge, facilities, patents applied to new markets, nee products etc. 2. Corporate partnersa. Firms are part of alliancesb. Align with competitor, suppliers, etc.c. Just in time delivery system (JIT)i. From factoryto retailer 3. Competition a. Know strengths and weaknessesb. Proactive rather than reactive strategy (legally- reverse engineering, find financial information, look up mission statement, Google earth)(illegal- breaking into headquarters, posing as potential customer) Macro environment- something that impacts the firm that we can not control1. Demographics- provides an easily understood snapshot of the typical consumer in a specific target market a. Age, gender, income, education, raceb. AGE Generational cohorts- people who have similar purchasing behaviors because of shared experiences (based on ages) (DON’T NEED TO KNOW DATES OR AGES)i. Seniors- (grandparents) born before 1946  increasing in internet interaction travel loyal to made in USA products careful with money (not big spenders) browse before purchaseii. Baby boomers- (1946-1964) casual life (Dockers) flower children (own individual) try to maintain youth bigger spenders than parents will probably out live their money  like their rock and rollThese 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.iii. Generation X- (38-49)- First generation of latch key generation children of divorce more cynical shopping savvy less prosperous than parents helicopter parents iv. Generation y (1977-2000)- millennial  work/life balance tech savvygood at multi-tasking considered to be an entitled generation v. Generation Z (2001-2014) digital natives never have known life withouttechnology  much more globally connected  buying same brands as generation X parents c. Income – purchasing power is tied to income—many middle class families feel the decline in purchasing powerd. Education- related to income with determines spending power e. Gender—Male/female roles have been shifted—marketing has changes to reflectthese shifts – role are becoming blurred – Women in workforce have different purchasing behaviors – still doing many traditional jobs be careful with gender neutrality f. Ethnicity- by 2050, minorities will represent 50% of the population salad bowl as opposed to melting pot— 80% of growth over next 20 years is coming from minorities  they have a higher birth rate and immigration – bilingual presentations i. African Americanii. Hispanic Americaniii. Asian American—better educated, fastest growing  2. Political/legal- competitive practice and trade legislationa. 1890: Sherman anti-trust act= prohibits monopolies and that restricts competitionb. 1914: Clayton Act- monopolies- time deals if you buy this you have to buy this as well (restricts)c. 1914: Federal Trade Commission : regulated traded. 1936: Robinson Patman= Prohibits price discrimination *** cant charge different customers different prices for the same product, exceptions bulk, senior day, different costs associated levels e. 1938: Wheeler-Lea Act= deceptive advertising is now illegal f. 1993: North American Free Trade Agreement (NAFTA)= all Americas because ableto trade as one large unit 3. Technology—new products (GMO), micro band, communication realm, cell phones, channels—business over internet, self checkout 4. Economic- currency, inflation, exchange rates, 5. Culture- passed down from generations, learned from families, changes over time a. Country culture vs. regional culture b. Soda vs. pop vs. coke c. Taste preferences – grits, boiled peanuts, sweet tea (southern) d. Dress – ceremonies—accents 6. Sociala. Thrift—all about getting a deal—steering away from luxury—living social/groupon – Lilly Pulitzer in target  Cross shopping- mixing high end and low end products together b. Health and wellness concerns- organic non-gmo—fit bit—gyms (yoga) – measeals(spread it since one person didn’t want to get vaccinated) – child/teen obesity c. Greener consumers—environmental safety – sustainability—energy efficient appliances (people aren’t paying more for greener products YET)d. Privacy concerns – being very private—do not call lists e. Time-poor society – always on the go for productivity reasons (time crunch) – working different