Chapter 4 External Marketing Environment Target Market group of people or organizations for which an organization designs implements and maintains a marketing mix External elements change consumers desires Environmental Management company implements strategies that attempt to shape the external environment within which it operates Social Factors most difficult external variable for marketing managers to forecast American Values strongly held and enduring belief o Self sufficiency every person should stand on own feet o Upward mobility success would come to anyone who got an education worked hard played by the rules o Work ethic hard work dedication to family o Conformity no one else should expect to be treated differently US consumers rank product quality as o Reliability durability easy maintenance ease of use trusted brand name low price Growth of Component Lifestyles choosing products and services that meet diverse needs and interests rather than conforming to traditional stereotypes Changing Role of Working Women o Biggest effect on marketing o Bring in 45 of income 59 of females are working Technology and Time Use o Leisure time less than 6 hours a day decrease attention spans Demographic Factors study of peoples statistics Tweens 8 to 12 view tv ads as just advertising Teens 13 19 o 20 million 200 bil a year fastest growing markets is home d cor o 25 million 72 hours a week electronically constant social media Growing Ethnic Markets Hispanic o Shopping is social sport make product modern interactive promotion Generation Y 18 to 33 o Surpassed baby boomers o Two Stages one starting their careers and those closer to teens Generation X People born between 1965 1978 o 40 million independent difficult to market 71 have kids under o Latest clothes technology big spenders at mass merchandisers 18 like Wal Mart Baby Boomers 1946 1964 o 75 million purchase iPads redecorate go on vacation 80 of personal wealth in US one of fastest growing markets o 1 in 3 US is a minority group by 2050 1 in 3 US will be Hispanic o Breaking down racial barriers mobile marketing social media o Import goods from Mexico nearly all have internet Black Asians o 47 between 19 and 49 which is top spending age o 30 of households are headed by single woman o Firms are making products directly for Blacks o Highest average family income younger better educated o Heavy users of technology o Marketers must understand difference in Asian cultures Gay and Lesbian o Product and communication issues are major considerations o 7 of American Adult o How should it be advertised to gay themes Economic Factors Consumers Income o Income has risen at a slow pace in recent years o Education is primary determinant of a persons earning potential Purchasing power comparing income to relative cost of a standard set of goods and services in different geographic areas o Income minus cost of living Inflation a measure of the decrease in value of money expressed as percentage reduction in value since previous year Recession a period of economic activity characterized by negative growth Technological Factors Research and Development Basic Research attempts to expand the frontiers of knowledge but is not aimed at a specific pragmatic problem Applied Research an attempt to develop new or improved products Political and Legal Factors Laws and Regulation protect o New technology society businesses consumers Legislation that affects marketing varies state by state Regulatory Agencies o Consumer Product Safety Commission protects consumer safety in and around their homes o Federal Trade Commission prevents unfair methods of o Food and Drug Administration enforces safety regulations competition against food and drug Competitive Factors Competition for Market Share and Profits o Firms must work harder to maintain profits and market share Global competition o More foreign firms are entering US market Foreign firms in US now compete on product quality
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