Ch 5 The Marketing Environment A Marketing Environment Analysis Framework 01 26 2016 Macro Environment culture demographics social technological Value based Marketing aims to provide greater value to consumer economic and political factors than competitors offer Trend and Competitors tracking sites The Cool Hunters and Trend Hunters The Immediate Environment Company Capabilities Pepesi Competitors o Successful marketing firms focus on satisfying customer needs that match their core competencies o Critical to understand the firms competitors strengths weaknesses and likely reaction to the marketing activities the your own firm undertakes Corporate Partners o Firms rarely work in isolation need to collaborate Macro Environmental Factors CDSTEP Culture Demographics Social Issues Technological Advances Economic Situation Political Regulatory environment Culture marketers must have products of services identifiable by and relevant to a particular group of people Culture influences consumers decision making o Two Dimensions of Culture Country Culture Regional culture consumer in a specific target market o Generational Cohorts Demographics provide easily understood snapshot of the typical Generation Z Digital Natives born into a world full of gadgets but also international terrorism Being raised by gen x and are developing affinity for the same brands Generation Y people born between the age of 1977 and 1995 biggest cohort since original postwar baby boomers Millennials Born between 1977 and 2000 and the children of baby boomers Generation X Born Between 1965 1976 50 grew up in divorced house holds thus they are now helicopter parents with their own children Hold a considerable amount of spending power Baby Boomers born between 1946 1964 the largest population They are individualistic high priority for leisure time believe they will always be able to take care of themselves obsession with maintaining their youth and loves rock n roll o Income Distribution of wealth wealthiest 1 controls 34 6 of American s total net worth the bottom 90 own 26 9 The concept of value families incomes have stayed in font of inflations but health care property taxes and tuition bills have risen much faster than inflation o Education marketers can combine education level with other data such as occupation and income and obtain pretty accurate prediction of purchase behavior o Gender firm must be careful about gender neutrality in positioning their products and attempt to transcend gender boundaries o Ethnicity Hispanic population growing exponentially Marketers can not plan on using same strategy for all ethnicities o Thrift economic impacts of recession and housing crash led to ppl spending less Lipstick effect shoppers enjoy treating themselves to small luxuries like channel lipstick but forgo larger luxury items like a vacation Social Trends Consumer expectations of what constitutes a good deal have changed so marketers need some new ideas to appeal o Health and Wellness Concerns Advertising no more fast food advertising to children and increasing consumer interest in improving yoga studios etc o Greener Consumers Green marketing a strategic effort by firms to supply customers with environmentally friendly merchandise Green washing exploiting a consumer by disingenuously marketing product or services as environmentally friend with the goal of gaining public approval and sales o Privacy concerns Do Not Call List most companies are moving resources away from telephone campaigns and refocusing them else where o A Time Poor Society marketers often rely on technology Technological Advances o Technology based decision Netflix tells us what to watch Pandora tells us what to listen to etc o Wireless payment apple pay o Mobile Device popularity the smaller screen on mobile devices means that less info must be convey the same brand image Economic Situation affects the way consumers buy merchandise and spend money o Factors that influence the state economy Inflation the persistent increase in the prices of goods and services Foreign currency fluctuations changes in the value of a country s currency relatives to the currency of another country Interest rates represent the cost of borrowing money Political and Regulatory Environment comprises of political parties government organizations legislation and laws Responding to the environment the marketers that succeed are the ones that respond quickly accurately and sensitively to customers 01 26 2016 01 26 2016