Chapter 5 Notes
Chapter 5 Notes MARK 3001
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This 9 page Class Notes was uploaded by Kyla Brinkley on Friday September 4, 2015. The Class Notes belongs to MARK 3001 at University of Georgia taught by Kimberly Grantham in Summer 2015. Since its upload, it has received 94 views. For similar materials see Principles of Marketing in Marketing at University of Georgia.
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Date Created: 09/04/15
Kyla Brinkley MARK 3001 Notes Fall 2015 l Chapter 5 Analyzing the Marketing Environment a Businesses try to stay on the cuttingedge and not be left behind i They have to pay attention to customer needs and monitor the business environment where they operate b factors that affect the marketing environment i immediate environment 1 company 2 competition 3 corporate partners ii macroenvironment culture demographics social technology economic politicallegal iii at the center is consumers who are influenced by both 1 value based marketing aims to offer better value than competitors 2 so business process must be considered from consumers POV c firms use tools to track competitor activitiesconsumer trends i ex sites like The Cool Hunters and Trend Hunters ii sometimes they anticipate trends d IMMEDIATE ENVIRONMENT i company capabilities 1 in immediate environment 1St factor that affects consumer is firm itself 2 focus on satisfying consumer needs 3 ex pepsi selling Aquafina after noticing demand for bottled water a did this by analyzing environment ii competitors 1 marketers must understand competitors strengths weaknesses and likely reactions to their own firms marketing activities mwewwe 2 ex Gillette and Schick both adding more blades to their razors a often call each other out because they are aware of each other s practices corporate partners 1 few firms operate in isolation 2 ex car companies collab with suppliers 3 ex clothing companies using green suppliers e MACROEVIRONMENTAL FACTORS i macroenvironmental factors aspects of the external environment that affect a company s business such as the culture demographics social issues technological advances economic situation and politicalregulatory environment 1 CDSTEPquot culture the set of values guiding beliefs understandings and ways of doing things shared by members of a society exists on 2 levels visible artifacts ex behavior dress symbols physical settings ceremonies and underlying values thought processes beliefs and assumptions 1 transmitted by words literature institutions 2 marketers try to make productsservices identifiable byrelevant to particular group of people 3 country culture a artifacts behavior dress symbols physical settings ceremonies language differences colors and tastes food prefs are easy to see b subtler aspects harder to see have to establish a universal appeal to identify with country culture 4 regional culture the influence of the area within a country where pe0ple live a affects how you refer to products soda vs pop vs Coke demographics information about the characteristics of human populations and segments esp those used to identify consumer markets such as by age gender income and education 1 firms do market research about what kind of customers they have gives a snapshot of their typical customer in the target market generational cohorts group of people of same generation typically have similar purchase behaviors because they ve shared experiences and are in same stage of life a marketing towards age is useful most media are characterized by the consumers who use 2 3 it b baby boomers born after WW2 19461964 iii iv v vi vii viii ix want products that foster casual lifestyle because try to maintain youth big generation biggest group of old people individualistic leisure time important selfsufficient careless spending money more focused on quality than price pushed casual lifestyles into workplace health conscious heavy internet users c generation Ymillennials born 19771995 iv V vi vii want products that foster casual lifestyle because of status big group millennials 19772000 Children of baby boomers varies most in age entering workplace and have diff expectations want to balance work amp life consider marriage secondary to being good parents hard to tell diff between genY in US amp other countries d generation X 19651976 latchkey children both parents worked ii 50 have divorced parents iii Helicopter parents with their kids iv Big spending power get marriedbuy houses later v Not interested in shopping cynical vi Demand conveniencedon t believe ads e generation 2 2001 2014 digital natives ii born into internet social networks etc iii more globally connected iv better appreciation for diversity v aware of terrorismenvironmental problems vi children of genX vii video games viii retailers like Gap developing special product lines to accommodate demands BUT this can cross line into exploitation 4 income a b C high income groups are growing middlelower income groups purchasing power is declining number of people earning below poverty line is growing increase in wealthy families increase of dual income households higher education level however broad range of incomes creates marketing opportunities at both highlow ends of the market consumers search for value because income growth has stagnated i healthcare costs property taxes tuition bills have risen faster than inflation 5educa on a b higher levels of edu lead to better jobs for some products marketers can combine edu level with data like occupationincome to make purchasing behavior predictions 6gender a today gender roles have been blurred i more firms concerned with gender neutrality 7 ethnicity a b C US getting more diverse Minorities are a quarter of the population and by 2050 will be half Immigrants live in metropolitan areas NY LA etc Hispanic buying power has huge influence Use credit cards ii Aren t very influenced by adsproduct placement iii Sensitive to instore promotions iv Shop onlinecatalogs v Marketers take separate approach ex Mexican vs Cuban For younger ppl firms gear marketing to whole US market regardless of ethnicity African Americans i Affluent suburban younger ii Home depot with Tom JoynerSteve Harvey Asians i Fastest growing minority population ii Earn more more schooling iii More likely to be professionally employedown a business iv Marketers focus on Asian subgroups iv SOCIAL TRENDS 1 Thrift a American societyconsumer society b Saving money important c Spend less on luxuries d e Lipstick effect shoppers enjoy thrill of treating Don t use savings themselves to small luxuries Chanel lipstick but not big luxuries like a vacation ln uncertain economic setting hard to be frugal all the time Extreme couponing i Subscribing to sale emails ii Consumers expectation of a good deal are changingwant things practically for free 2 Healthwellness concerns a Health geared towards children i Child obesity ii Diabetes b Other countries have health problems like obesity etc too i Western diets c New ad guidelines food in better portions i Nutrients i Low fat no artificial sweeteners i i Cant be shown during kids shows iv Cant link unhealthy foods with cartooncelebrity figures d New markets for healthy products i Yoga matsclothingclasses popular 3 Greener consumers a Green marketing involves a strategic effort by firms to supply customers with environmentally friendly merchandise Recycling more popular Watersaving dishwashers etc Solar powered businesses Greenwashing exploiting a consumer by disingenuously marketing products or services as environmentally friendly with the goal of gaining public approvalsales 4 Privacy concerns a Loss of privacy b Better securitycredit check services c Multinational corporation security breaches i Ex target ii Stealing personal info d Federal Trade Commission FTC made better Do Not Call Registry i Companies moving away from phone campaigns anyway 0993 5 Timepoor society a Nobody has any time b People work a lot median hrsweek49 c Busy kids i Multitasking ii Divided attention can t focus on ads d Retailers try making products available 247 wherever customers want i Stores catalogues online shopping ii Extended hrs of operation iii Self checkout v TECHNOLOGICAL ADVANCES 1 Internet everywhere a Wifi 3G 4G b Tablets portable c Smartphones 2 Consumers dependent on technology for decision making too a Netflix suggesting movies Pandora suggesting music etc 3 Payment online easier 4 Mobile devices enhance customer s experience by making it easier to interact with manufacturer retailer amp other consumers 5 Use internet more on the phone in general a Difficult small screen hard to give infoconvey brand image vi ECONOMIC SITUATION 1 Marketers monitor general economic situation in home countryabroad affects way consumers buyspend 2 Inflation the persistent increase in price of goodsservices a Dollar buys less than it used to b High inflation consumers will buy less expensive hamburger rather than steak important to marketers 3 Foreign currency fluctuations changes in the value of a country s currency relative to the currency of another country Can influence customer spending a Ex euro was more expensive our products cost less for them but their products are more expensive for us 4 Interest rates represent the cost of borrowing money a fee bank charges customers for borrowing money b interest rate goes up incentive for consumers to save more to earn interest c interest rate goes down incentive for consumers to borrow more vii POLITICALREGULATORY ENVIRONMENT 1 Comprises political parties gov orgs and legislationlaws 2 gov passing laws that promote fair tradecompetition a prohibiting formation of monopolies or alliances that would damage competitive marketplace 3 IMPORTANT a Sherman Antitrust Act 1890 i Prohibited monopolies ii Made free trade a national goal b Clayton Act 1914 i Prohibits combo of 2 or more competing corporations thru pooling ownership of stocldrestricting pricing policies 1 Price discrimination 2 Exclusive dealing 3 Tying clauses to diff buyers c Federal Trade Commission 1914 i Established to regulate unfair competitive practices practices that deceive or are unfair to consumers d RobinsonPatman Act 1936 i Specifically outlaws price discriminations toward wholesalers retailers or other producers ii Requires sellers to make ancillary services or allowances available to all buyers on proportionately equal terms e WheelerLea Act 1938 i Amended FTC Act ii Unfair actspractices unfair competition iii Penalties for violation f North American Free Trade Agreement NAFTA 1993 i Agreement between Canada Mexico US ii Rulesbased trade bloc in north America 4 Regulations require marketers to abstain from false or misleading ads 5 Manufacturers required not to use harmful materials a Ex lead in toys 6 Orgs must adhere to fairreasonable business practices when communicating with consumers viii RESPONDING TO THE ENVIRONMENT 1 Companies engage in tacticsmarketing strategies to try to respond to multiple developments in the wider environment 2 Marketers that succeed are the ones that respond quickly accurately and sensitively to consumers
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