1. CHAPTER Day 6 BUS 222

2. Ch 1 -2 Agenda Class roll call Questions Assignment 1 DUE Assignment 2 posted – Due Feb 15 @ 9:30 AM – Marketing Assignment 2.pdf Marketing Assignment 2.pdf Quiz 1 on Feb 15 – Chaps 1-4, 20 M/C. One hour time limit – Open Book, Open Notes, NO electronic devices – 5 points extra credit question on Super Bowl Ads Begin Analyzing the Market Environment

3. CHAPTER ANALYZING THE MARKETING ENVIRONMENT 04 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

4. LEARNING OBJECTIVES Analyzing the Marketing Environment LO1Outline how customers, the company, competitors, and corporate partners affect marketing strategy. LO2Explain why marketers must consider their macroenvironment when they make decisions. LO3Describe the differences among the various generational cohorts. LO4Identify the various social trends.

5. Analyzing the Marketing Environment Kimberly-Clark uses wood fiber from recycled sources or well-managed forestlands. Courtesy of iStockphoto with design by Curran & Connors, Inc

6. A Marketing Environment Analysis Framework

7. The Immediate Environment

8. Successfully Leveraging Company Capabilities Existing knowledge, facilities, patents, etc. New markets, new products, etc. Core competency applied to ©M Hruby

9. Competitors Know their strengths & weaknesses Develop proactive rather than reactive strategy Chad Baker/Getty Images

10. Kimberly-Clark: Pull-Ups (Huggies) versus Procter & Gamble: Easy-Ups (Pampers) Daniel Acker/Bloomberg via Getty Images

11. Corporate Partners From factory Retailer to Firms are part of alliances Align with competitors, suppliers, etc. Just in Time Delivery Systems (JIT) D Normark/PhotoLink/Getty Images Siede Preis/Getty Images ©Lars A Niki

12. Check Yourself 1. What are the components of the immediate environment?

13. Macroenvironmental Factors

14. Culture Country CultureCountry Culture vs. Regional CultureRegional Culture ©Brand X Pictures/PunchStockPhotoLink/Getty Images

15. Controversy Surrounds All Catholic Town

16. Demographics Provides an easily understood snapshot of the typical consumer in a specific target market U.S. Census Website BananaStock/JupiterImages Comstock Images/Alamy

17. Generational Cohorts

18. Income Purchasing power is tied to income Many middle class families feel the decline in purchasing power in recent years Courtesy of Hammacher Schlemmer, http://www.hammacher.com/http://www.hammacher.com/

19. Education = Education is related to income, which determines spending power ©Fancy Photographer/Veer Brand X Pictures

20. Degrees and earnings Hard Times.pdf

21. Gender Marketing has changed to reflect these shifts Male/female roles have been shifting Jochen Sand/Digital Vision/Getty Images

22. Ethnicity By 2050, minorities will represent 50% of the population. Bud Light Commercial ©2006 Oldemarak, LLC Reprinted with permission The Wendy’s name, design and logo are registered trademarks of Oldemark, Llc and are licensed to Wendy’s International, Inc.

23. Social Trends Price Sensitivity Health and Wellness Concerns Greener Consumers Privacy Concerns Time-Poor Society

24. Price Sensitivity Consumers Attempting to save more Spend less on luxuries Do not dip into their savings

25. Health and Wellness Concerns Worldwide Pandemics or Epidemics – SARS – Bird Flu – H1N1 Child-Teenage Obesity Adult onset diabetes Courtesy Subway Franchise Advertising Fund Trust

26. Greener Consumers Courtesy Ford Motor Company

27. Privacy Concerns Loss of privacyIdentity theftDo not callDo not e-mail Chad Baker/Ryan McVay/Getty Images

28. Time Poor Society In the majority of families, most parents work Consumers have many more choices regarding leisure time Many consumers multitask

29. McDonald’s Moms

30. Technological Advances Technology has impacted every aspect of marketing – New products – New forms of communication – New retail channels Stop and Shop Website AP Photo/Ric Feld

31. Combined with inflation and interest rates affect firms’ ability to market goods and services Economic Situation Foreign currency fluctuations Conference Board Website PhotoLink/Getty Images Brand X Pictures

32. Political/Regulatory EnvironmentPolitical/Regulatory Environment: Consumer Protection http://www.androidpit.com/mobile-device-privacy-act

33. Political/Regulatory EnvironmentPolitical/Regulatory Environment: Competitive Practice and Trade Legislation 1890: Sherman Antitrust Act1914: Clayton Act1914: Federal Trade Commission1936: Robinson-Putman Act1938: Wheeler-Lea Act 1993: North American Free Trade Agreement (NAFTA) David Hiller/Getty Images

34. Check Yourself 1. What are the six key macroeconomic factors? 2. Differentiate between country culture and regional culture. 3. Identify the different generational cohorts. 4. What are some important social trends shaping consumer values these days?

35. Return to slide Country culture involves visual nuances of a country’s culture such as artifacts, behavior, dress, symbols, physical settings, ceremonies, language differences, colors and tastes, and food preferences, as well as language. Glossary

36. Return to slide Culture is the shared meanings, beliefs, morals, values, and customs of a group of people. Glossary

37. Return to slide Demographics indicate the characteristics of human populations and segments, especially those used to identify consumer markets. Glossary

38. Return to slide A generational cohort is a group of people of the same generation. Glossary

39. Return to slide The political/regulatory environment comprises political parties, government organizations, and legislation and laws. Glossary

40. Return to slide Regional culture involves the region in which people live in a particular country. Glossary