MARK3001 1st Edition Lecture 2 Outline of Last Lecture I Target Market A Definition of Target Market I The 4 P s II Exchange of Value A Definition of Value B What makes up utility III Assortment Long Term Relationship IV B2B Business to Business Marketing A For B2B Marketing the 4 P s mean different things than between product and consumer B Marketing as a company philosophy C Purpose of the organization is to satisfy consumer needs and wants while meeting the organizational objectives D Key question E Other Orientations a Production b Sales c Example Ford s market share decline Outline of Current Lecture V Advancing beyond the marketing concept A Societal marketing orientation a Key question VI Marketing Environment A Definition of marketing environment B Environmental Scanning VII External Environmental Factors A Demographics B Social C Economics D Technological E Political and Legal F Competitive VIII Demographic Factors in the US A Current US Demographics IX Age Cohorts in the US A Tweens B Teens C Generation Y D Generation X E Baby Boomers X Growing Ethnic Markets in the US XI Social Factors in the US A Values B Conformity C Individuality D Work to live E Time XII Economic Factors A Overall economy B Consumer s ability to purchase C Consumer s willingness to purchase This is affected by a Income b Business cycles and perceptions how we feel and perceive the economy i Recession ii Recovery iii Prosperity iv Depression v Where can we find this information vi Consumer Perceptions Current Lecture I Advancing beyond the marketing concept B Societal marketing orientation a Key question II Marketing Environment C Definition of marketing environment D Environmental Scanning III External Environmental Factors G Demographics population statistics H Social values and beliefs cigarettes bottled water etc I Economics income and business national and personal J Technological innovation K Political and Legal laws L Competitive what others are doing IV Demographic Factors in the US B Current US Demographics a 316 million people b 115 million households c 49 2 men and 50 8 women d Median age is 37 above and below e Census Bureau is available to find all of these figures V Age Cohorts in the US F Tweens a 8 12 years old b 20 million c Forming attitudes d Access to info e Spend 200 billion yr f Cynical towards ads rarely click through G Teens a 13 17 years old b 25 million c Spend 72 hours week on electronics d 93 use internet and 74 use cellphones e 75 have accounts on Facebook f See shopping as a social sport g Very engaged with advertisements H Generation Y a 18 32 years old b 75 million c Millenniums d Wide range of life cycles 18 year old vs 32 year old e Inquisitive diverse time managers multi taskers identify with brands I Generation X a 33 47 years old b 40 million c Focus on children could tend to be helicopter parents or parents who are very overprotective d Biggest spenders at mass merchandisers e Value education J Baby Boomers a 48 66 years old b 75 million c control 80 of personal wealth in the US d More active than previous they never age meaning they still think and act like they are young e Most are postponing retirement f Highly involved in lives of adult children and grandchildren VI Growing Ethnic Markets in the US A Currently minorities represent 37 of the US population B 50 4 of all children belong to a minority group C These groups assimilate to US culture but also have strong interest in preserving native heritage D What does this mean a There is a huge market to satisfy those ethnic needs VII Social Factors in the US F Values self sufficiency work ethic upward mobility the American Dream G Conformity no one should expect special treatment equality H Individuality I Work to live not live to work J Time is an issue always busy and on the go VIII Economic Factors D Overall economy E Consumer s ability to purchase F Consumer s willingness to purchase This is affected by a Income i Median household income in 2012 was 50 502 00 ii In 2007 it was 54 300 00 iii Consumer s willingness to spend is also affected by the savings rate b Business cycles and perceptions how we feel and perceive the economy i Recession falling income employment and production focus of advertising is on value ii Recovery rising income employment and production focus of advertising is on buy now for better times later iii Prosperity high income employment and production focus of advertising is on convenience or consumer rewards iv Depression low income employment and production focus of advertising is on basic needs Very basic essential products are about only things you can sell during a depression v Where can we find this information Bureau of Labor Statistics and GDP vi Consumer Perceptions the consumer confidence index from the Conference Board and the misery index unemployment rate inflation rate