Marketing Study guide Things highlighted in yellow are supposedly on the test This test has 39 questions and will be worth 118 points Peter Drucker Article I recommend reading this article Idea that customers should be should be treated as the 1 priority Peter Drucker is considered the founder of management ideals Arturo Cuenllas Hospitality school in Switzerland Philip Kotler author of our textbook considered the father of marketing thought Chapter 4 The Marketing Environment SWOT Analysis Internal Environmental Analysis Strengths 4 1 Weaknesses 4 2 External Environmental Analysis Opportunities 4 3 Threats 4 4 Responding to the Marketing Environment Understanding linkages in the marketing environment Environmental scanning 5 steps Information to be collected 1 Areas to be motivated 2 3 Collect the data 4 Analyze data and 5 Use the information Microenvironment The Microenvironment The company Competitors Publics Customers Suppliers Intermediaries Marketing is only one department Marketing managers must act in accordance with top management as well as with In order to be better than the competition managers must know what their competitors are doing The Company o Finance department o Accounting department o Logistics department o Front line employees o Legal department Existing Competitors Knowing who your competitors are Four levels of competitors o Product form o Product category o General competition o Budget competition o know definitions level Levels of Competitors Example Tacobell thinking aboutside of the bun campaign targets product category Companies that offer similar services to the same customers at a similar price Companies that make the same product or class of products Companies that supply the same service Companies that compete for the same consumer dollars Existing Competitors Three variables to monitor when analyzing competitors 1 Share of market Market share in the target market 2 Share of mind Name the first company that comes to mind in this industry product 3 Share of heart Name the company from whom you would prefer to buy the market product QUESTION FROM THIS SLIDE Suppliers goods services Suppliers Firms and individuals that provide resources needed to produce Trends or events affecting suppliers can have serious consequences on marketing Examples o Restaurants and new menu offering o Hotel food service o DMOs CVBs and energy prices Intermediaries Marketing intermediaries Help the company promote sell and or distribute products services to final buyers o Travel agents tour operators internet booking agents o Marketing Service Agencies Help implement marketing strategy and tactics o Financial intermediaries Firms that finance transactions or provide insurance Macro environments The Macro environment o Demographic o Cultural o Economic o Technological o Natural o Political Cultural Environment o Size o Density o Location Age o Gender o Race o Occupation o Others o Institutions and other forces that affect society s basic values perceptions preferences and behaviors o Cultural Values Cultural Environment Subcultures Demographic Environment o Demography The study of human populations in terms of Changes in demography can have a major impact on the effectiveness of the marketing plan Natural Environment o Growing shortages or raw materials o Increased government intervention o Increased pollution Technological Environment o Must consider both positive and negative impacts of technology o The good Internet et al decreased travel costs o The bad Vulnerability to internet attacks decreased privacy nuclear biological weapons etc Key Terms for Chapter 4 Baby boomers The 78 million people born between 1946 and 1964 Demography The study of human populations in terms of size density location age sex race occupation and other statistics Disintermediation The elimination of intermediaries Echo boomers See Millennials Born between 1977 and 1994 these children of the baby boomers now number 72 million dwarfing the Gen Xers and almost equal in size to the baby boomer segment Also known as Generation Y Economic environment The economic environment consists of factors that affect consumer purchasing power and spending patterns Markets require both power and people Purchasing power depends on current income price saving and credit marketers must be aware of major economic trends in income and changing consumer spending patterns Environmental management perspective A management perspective in which a firm takes aggressive actions to affect the public and forces in its marketing environment rather than simply watching and reacting to it Financial Intermediaries Banks credit companies insurance companies and other businesses that help finance transactions or insure against the risks associated with the buying and selling of goods Generation X A generation of 45 million people born between 1965 and 1976 named Generation X because they lie in the shadow of the boomers and lack obvious distinguishing characteristics other names include baby busters shadow generation or yiffies young individualistic freedom minded few Generation Y See Millennials Macroenvironment The larger societal forces that affect the whole microenvironment competitive demographic economic natural technological political and cultural forces Marketing environment The actors and forces outside marketing that affect marketing management s ability to develop and maintain successful transactions with its target customers Marketing intermediaries Firms that help the company to promote sell and distribute its goods to final buyers they include middlemen physical distribution firms marketing service agencies and financial intermediaries Marketing services agencies Marketing research firms advertising agencies media firms marketing consulting firms and other service providers that help a company to target and promote its products to the right markets Microenvironment The forces close to a company that affect its ability to serve its customers the company market channel firms customer markets competitors and the public Millennials also called Generation Y or the echo boomers Born between 1977 and 2000 these children of the baby boomers number 83 million dwarfing the Gen Xers and larger even than the baby boomer segment This group includes several age cohorts tweens ages 8 to 12 teens 13 to 18 and young adults the twentysomethings Political environment Laws government agencies and pressure groups that influence and limit