Chapter Four Analyzing the Marketing Environment Beginning Case Consumers prefer greener products Kimberly Clark continually seeks to minimize its environmental impact in its overall effort to improve value of its at home professional and health care product offerings o Focuses on reducing energy water use reducing packaging materials cutting carbon emissions minimizing waste Working toward social economic and environmental sustainability is not only right but critical to business survival A Marketing Environment Analysis Framework Marketers continue to find changes in what customers want adapt their product service offerings accordingly pay close attention to customer needs identify potential opportunities Consumers influenced directly by immediate actions of focal company companies competitors and corporate partners that work with firm to make supply products services to consumers o Provide greater value to consumers than competitors offer The Immediate Environment Company Capabilities satisfying customer needs that match their core competencies analysis of external environment assess in terms of existing competencies Competitors understand firms competitors strengths weaknesses reactions o Proctor Gamble quickly introduces Easy Ups diapers as a response to competition of pull ups Corporate Partners parties that work with focal firm are its corporate partners o Going green can prompt companies to work more closely with their partners to innovate Nau to develop outdoor ski clothing from renewable resources Macro environmental Factors operate in external environment CDSTEP Culture the shared meanings beliefs morals values and customs of group of people what why how where and when we buy o Challenge for marketers to have products services identifiable by relevant to particular group of people o Country culture tools and artifacts behavior dress symbols physical settings ceremonies language differences colors tastes food preferences o Regional culture particular country in which people live affects way they refer to particular product category Demographics indicate characteristics of human populations and segments esp those who identify consumer markets o Provide easily understood snapshot of typical consumer in target market o BMW Mini have successfully bridged cultural gap by producing advertising that appeals to same target across countries o General Cohorts group of people of same generation have similar purchase behaviors because have shared experiences and are in same stage of life Seniors make up America s fastest grouping group before 1946 67 Have time to shop money to spend Baby Boomers after WWII birth rate in US rose resulting in this group 1946 1964 48 66 Individualistic leisure time high priority believe will always be able to take care of selves maintaining youth rock n roll Necessities adding to depleting savings ensuring access to best health care wellness services Accustomed to spending money on self work past retirement Generation X first generation of latchkey children both parents work unlikely to enjoy more prosperity than parents 1965 1976 36 47 Spending power b c tend to get marries later and buy houses later in life Generation Y puts strong emphasis on balancing work and life tech savvy 1977 2000 12 35 Income higher income groups are growing whereas many middle lower income groups purchasing power declining Family incomes stayed slightly ahead of inflation but health care costs property taxes tuition bills have risen faster Education higher level of education lead to better jobs higher income Marketers can combine education level w other data like occupation income obtain pretty accurate predictions of purchase behavior Gender more firms careful about gender neutrality in positioning products attempt to transcend gender boundaries Ethnicity immigration increasing birth rate among carious ethnic racial groups US continues to grow more diverse Minorities one quarter of population powerful groups in terms of disposable income Social Trends appear to be shaping consumer values in US and around world greater emphasis on thrift health wellness concerns greener consumption privacy concerns time poor societies o Price Sensitivity attempting to save more spend less on luxuries and manage without dipping into their savings o Health and Wellness Concerns increasingly aware of threats of worldwide pandemics epidemics Demand products that can help keep selves family safe o Greener Consumers Green marketing involves strategic effort by firms to supply customers w environmentally friendly merchandise Green products initiatives suggest complicated business model Question whether firm is spending significantly more money resources just advertising being green or truly operating w consideration for environment using resources on environmentally sound practices Cotton made in Africa project promotes sustainable cotton farming in Africa opening first carbon neutral headquarters in industry o Privacy Concerns more consumers worldwide sense loss of privacy o A Time Poor Society in majority of families both parents work kids busy Adjust to challenge of getting consumers attention Retailers doing their part by making products available to customers whenever wherever they want Technological Advances accelerated greatly during past few decades improving value of both products services o Cell phone LCD Televisions MP3 Player Internet Access Digital Camera iPhone Economic Situation both in their home country abroad because affects way consumers buy merchandise and spend money o Inflation refers to persistent increase in price of goods services o Foreign currency fluctuations can influence consumer spending o Interest rates represent cost of borrowing money Political Regulatory Environment comprises political parties government organizations and legislations and laws o Fair competition consumer protection and industry specific regulation o Abstain from false misleading advertising practices o Refrain from using any harmful or hazardous materials o Fair reasonable business practices o Government enacts law focused on specific industries Ending Case Nike Delivering Innovation and Inspiration Tasked mainly w ensuring company continues to produce shoes young athletes want to buy to generate profits create better shoes for athletes Outsources production to developing countries for labor cost advantage o Manufacturing exposed workers to toxins atrocious working conditions o Improving
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