Chapter 4 Analyzing the Marketing Environment Intro Kimberly Clark environmentally safe practices which lead to new products A Marketing Environment Analysis Framework o Centerpiece is consumer in value based marketing provide greater value to customer than competitor Consumers may be influenced directly by the immediate actions of the focal company the company s competitors and corporate partners that work with the firm to make and supply products to consumers So firms and customers are impacted by macroenvironment Culture demographics social technological economic legal factors trends can be anticipated The Immediate Environment o Company Capabilities The firm is the first factor affecting the consumer Categorize opportunity as attractive or unattractive and assess it in terms of their own existing competencies o Competitors activities o Corporate Partners Know their strengths weaknesses and likely reactions to marketing Ex Kimberly Clark diapers vs PG paper towels vs Brawny Nau showed how going green can prompt companies to work more closely with their partners to innovate Macroenviromental Factors o Culture The shared meanings beliefs morals values and customs of a group of Marketers must take into account the culture of the country and that of a people region within the country languages Country Culture BMW has same advertisements but different Regional Culture differences in how people refer to pop soda o Demographics Provide a snapshot of the typical consumer in a specific target market Generational Cohorts similar purchase behaviors o Seniors fastest growing 39 million over 67 Like quality 32 use internet Ethical Dilemma Predatory Lenders Target Vulnerable Customers prone to fraud o Baby Boomers 78 million born between 1946 and 1964 Individualistic leisure time represents a high priority they believe they will be able to always take care of themselves obsession with maintaining their youth will always love rock and roll Work past retirement age o Generation X 1965 1976 41 million 50 have divorced parents Latchkey children Unlikely to enjoy economic prosperity Marry and spend later o Generation Y Millennial 1977 2000 60 million Balancing work and life Lived and grown with technology entitled generation Income Education o Wealth rising as double income families grow o Hammacher Schlemmer going to middle and lower class o Searching for more value as taxes tuition etc rise o Marketers can combine educational level with other data like occupation and income and get accurate predictions of purchase behavior o Interaction between education income and occupation Gender o Move toward gender neutrality Bugaboo high tech stroller Nike marathon to identify growing women athletics Ethnicity o 80 of all population growth in the next 20 years is expected to come from non white By 2050 a quarter of the population will be Hispanic o Powerful groups in disposable income o Cant group minorities together Ex Asian countries all speak different languages o Social Trends Price Sensitivity Save more and spend less on luxuries Marketers offer ways to make spending easier for thrifty customers o Virgin Atlantic share taxi ride costs Health and Wellness concerns Demand in products to keep families safe o Hand sanitizer rose 70 in 2009 o Obesity has doubled so advertised foods must provide basic nutrients and cannot link unhealthy food to celebrities o Ex No more SpongeBob at BK Greener Consumers merchandise Strategic effort to supply customers with environmentally friendly o Ex Germans must recycle EU no hormone meat o Exhibit 4 1 Adding Value Puma Sacks the Box New box to cut use by 65 no need for shopping bag saves shipping costs Privacy Concerns Consumer information leads to regulation FTC do not call registry Time Poor Society Exhibit Grocery Retailers Help Time Poor Consumers o To go for quick and easy shopping Work hours up and leisure hours down DVR have increased Multitasking Marketers must get these consumers attention Moving away from traditional TV ads Office Depot Walgreens extended hours of operations o Technological Advances Exhibit Power of the Internet Brands Calling at Your Service Dominos pizza tracker and other apps let user control Product Cell Phone LCD TV MP3 Internet Digital Cam IPhone Year Intro 1984 1988 1991 1993 1998 2007 2006 Sales 111 5 924 719 582 828 360 o Economic Situation affects the way consumers buy merchandise and spend money Inflation persistent increase in the prices of goods and services Makes purchasing power of the dollar to decline Foreign Currency Fluctuations euro worth more Shifts in these three factors can make some win and some lose Interest rates if rates go up people want to save more o Political Regulatory Environment Organizations must fully understand and comply with any legislation regarding fair compensation consumer protection 3 Marketers must restrain from false or misleading advertising that could mislead consumers Refrain from using any hazardous materials Fair and reasonable business practices when they communicated with consumers no scams Keep competition Deregulation of telephone and energy industries MAKE CARDS FOR LAWS ON PG 133
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