McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. Learning Objectives LEARNING OBJECTIVES How do customers, the company, competitors, and corporate partners affect marketing strategy? Why do marketers have to think about their macro environment when they make decisions? How do corporate social responsibility programs help various stakeholders? 4-2 Analyzing the Marketing Environment Earth Rewards credit card expects $20 billion in green sales by 2010 4-3 A Marketing Environment Analysis Framework 4-4 The Immediate Environment 4-5 Successfully Leveraging Company Capabilities Core competency Existing knowledge, facilities, patents, etc. applied to New markets, new products, etc. 4-6 Competitors and Competitive Intelligence Competitive Intelligence (CI) Proactive rather than reactive strategy 4-7 Gillette vs. Schick 4-8 Corporate Partners • • • Firms are part of alliances Align with competitors, suppliers, etc. Just in Time Delivery Systems (JIT) From factory to Retailer 4-9 Macro Environmental Factors 4-10 Culture Country Culture vs. Regional Culture 4-11 Demographics Provides an easily understood snapshot of the typical consumer in a specific target market 4-12 Generational Cohorts 4-13 Seniors, Boomers and X and Y’ers 4-14 Jeanette just joined an after-work aerobics class. She also recently had cosmetic surgery and spent a week at rejuvenation spa in Costa Rica. Jeanette is most probably a member of the _________________ generational cohort. A. Senior B. Baby Boomer C. Generation X D. Generation Y E. Tween 4-15 Income Purchasing power is tied to income Census bureau tracks income Many middle class families feel the decline in purchasing power in recent years $1,995.95 from Hammacher Schlemmer 4-16 Education = Education is related to income, which determines spending power 4-17 Gender Male/female roles have been shifting Marketing has changed to reflect these shifts 4-18 Ethnicity By 2050, minorities will represent 50% of the population. Bud Light Commercial 4-19 Typical _____________ data include race, gender, income, and marital status. A. behavioral B. macromarketing C. inflationary situation D. regional social E. demographic 4-20 Social Trends Greener Consumers Marketing to Children Privacy Concerns Time-Poor Society 4-21 Greener Consumers Customers who appreciate firms efforts to supply them with environmentally friendly merchandise. 4-22 Targeting Kids: Is it wrong? 4-23 Privacy Concerns Loss of privacy Identity theft Do not call Do not e-mail 4-24 Time Poor Society In the majority of families, most parents work Consumers have many more choices regarding leisure time Many consumers multitask 4-25 McDonald’s Moms 4-26 Technological Advances Technology has impacted every aspect of marketing New products New forms of communication New retail channels Stop and Shop Website 4-27 Economic Situation Foreign currency fluctuations Combined with inflation and interest rates affect firms’ ability to market goods and services Conference Board Website 4-28 Political/Regulatory Environment: Competitive Practice and Trade Legislation 1890: Sherman Antitrust Act 1914: Clayton Act 1914: Federal Trade Commission 1936: Robinson-Putman Act 1938: Wheeler-Lea Act 1993: North American Free Trade Agreement (NAFTA) 4-29 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 key dimension is used to classify an individual into a given cohort? 5. What are some important social trends shaping consumer values these days? 4-30 Corporate Social Responsibility 4-31 What are customer’s concerns? 4-32 The Output for Companies 4-33 Check Yourself 1. How has corporate social responsibility evolved since the turn of the 20thCentury? 2. Identify the inputs and outputs of the corporate social responsibility framework? 4-34 Glossary Firms use competitive intelligence (CI) to collect and synthesize information about their position with respect to their rivals. Return to slide 4-35 Glossary 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. Return to slide 4-36 Glossary Culture is the shared meanings, beliefs, morals, values, and customs of a group of people. Return to slide 4-37 Glossary Demographics indicate the characteristics of human populations and segments, especially those used to identify consumer markets. Return to slide 4-38 Glossary A generational cohort is a group of people of the same generation. Return to slide 4-39 Glossary The political/regulatory environment comprises political parties, government organizations, and legislation and laws. Return to slide 4-40 Glossary Regional culture involves the region in which people live in a particular country. Return to slide 4-41