Chapter 4 The Marketing Environment LO 1 The External Marketing Environment target market a defined group most likely to buy a firm s product environmental management when a company implements strategies that attempt to shape external environment within which it operates component lifestyles choosing goods services that meet one s diverse needs interests rather than conforming to a single lifestyle LO 2 Social Factors LO 3 Demographic Factors demography study of people s vital statistics age race ethnicity location generation Y people born between 1979 1994 Generation X people born between 1965 1978 Baby boomers people born between 1946 1964 LO 5 Economic Factors purchasing power comparison of income vs the relative cost of a set of standard of goods services in different geographic areas inflation measure of the decrease in the value of money expressed as the percentage reduction in value since the previous year recession period of economic activity with negative growth which reduces demand for goods services LO 6 Technological Factors basic research pure research that aims to confirm an existing theory or to learn more about a concept of phenomenon applied research an attempt to develop new or improved products LO 7 Political Legal Factors of consumers Consumer Product Safety Commission CPSC established to protect the health safety Food Drug Administration FDA enforces regulations against selling distributing adulterated misbranded or hazardous food drug products Federal Trade Commission FTC prevent persons corps from using unfair methods of competition in commerce
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