The Marketing Environment Target Market a defined group most likely to buy a product Changes as consumers age External elements change desires Environmental Management when a company implements strategies that attempt to shape the external environment within which it operates Social factors o Attitudes o Values o Lifestyle Economic Factors o Consumers income o Purchasing power o Inflation o Recession Political and Legal Factors o New technology o Society o Businesses o Consumers American Values Self sufficiency Upward mobility Work ethic Conformity Component lifestyles the practice of choosing goods and services that meet one s diverse needs and interests rather than conforming to a single traditional lifestyle Role of Families and Working Women working women have had the greatest effect on marketing They bring in nearly half of the family s earnings and almost 60 of them are in the workforce Demographic Factors people are the basis for any market Demographic characteristics relate to buyer behavior Demographic cohorts have their own needs values and consumption patterns Age Markets o Tweens 8 12 yrs old parents spend money on them o Teens 13 19 view shopping as a sport see many ads Like convenient and modern products Use interactive marketing contests etc o Generation Y 17 32 very diverse multitaskers environmentally aware quick shoppers o Generation X 33 40 independent cautious home owners buy latest clothing and technology usually have kids o Baby Boomers 35 60 working longer to help boost retirement savings market directed at seniors o Seniors old How to target gerontographics Ethnic Markets Hispanics Asians and African Americans huge part of parmets brands o Hispanics tend to be brand loyal but not aware of US o African Americans products and media are being directly targeted at African Americans o Asian Americans highest income of all groups first to buy tech gadgets high end clothing Sexual Orientation gay lesbian o About 7 of Americans o New field for companies to attract Consumer s Incomes median household income is 52 000 Purchasing power a comparison of income versus the relative cost of a set of standard of goods and services in different geographic areas Inflation a measure of the decrease in the value of money expressed as the percentage reduction in value since the previous year Recession a period of economic activity characterized by negative growth which reduces demand for goods and services Research Basic research pure research that aims to confirm an existing theory or to learn more about a concept or phenomenon Applied research an attempt to develop new or improved products Federal Legislation Regulate competitive environment o Sherman Act o Clayton Act o Federal Trade Commission Act o Celler Kefauver Antimerger Act o Hart Scott Rodino Act o Foreign Corrupt Practices Act Regulate Pricing Practices o Robinson Patman Act Control False Advertising o Wheeler Lea Act State laws legislation that affects marketing varies state by state Regulatory Agencies Consumer Product Safety Commission protects consumer safety in and around their homes Federal Trade Commission prevents unfair methods of Food Drug Administration enforces safety regulations competition in commerce for drugs and food Competitive Factors Global competition Competition for market share and profits
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