Marketing Environment Microenvironment Company itself Suppliers Marketing intermediaries Customers Competitors Publics o o o o o o o Financial public Media public Government public Citizen-action public Local public General public Internal public Demographic o o Macroenvironment o Baby Boomers 78 million born between 1946 and 1964 Nearly 30% of population Spend $2.3 trillion annually and hold ¾ of the nations financial assets Spend $30 billion annually on anti-aging products and services; strong market for financial services, new housing, travel, etc. Are likely to postpone retirement Generation X 49 million born between 1965 and 1976 Defined by shared experiences Increased parental divorce rates and more employed mothers made generation x the first of the latchkey kids Gen x developed a more cautious economic outlook due to recessions and downsizing that were common when they grew up Cares about the environment Prizes experience Family comes first Skeptical of marketing messages; researches purchases carefully, uses communities to share information Represents close to $1.4 trillion in annual purchasing power Millennials 83 million born between 1977 and 2000- larger than baby boomer segment Includes tweens, teens, and young adult Ethnically diverse Fluent with computer and digital technology Personalization and product customization are key to marketing success The American family and household makeup is changing: Traditional households are in decline Married couples with children = 23% Geographic shifts in population: o 14% of U.S. residents move each year toward the sun belt U.S becoming more educated Economic o o o o o 1990 spending was high 2000 technology got screwed over Rich keep getting richer Middle class is shrinking Poor stay poor Natural o Weather is getting more and more intense o Technological What is hot now won’t be hot next year Political Cultural Responding to the marketing environment Reactive responses Many forms simply react to changes in the marketing environment Proactive responses Some firms attempt to manage the marketing environment via aggressive actions designed to affect the global economy