Chapter 5 Guided Notes
Chapter 5 Guided Notes MKT1211K
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This 5 page Class Notes was uploaded by Lia Pearson on Monday September 21, 2015. The Class Notes belongs to MKT1211K at Jamestown Business College taught by Mrs. Halftown in Summer 2015. Since its upload, it has received 39 views. For similar materials see PRINCIPLES OF MARKETING in Marketing at Jamestown Business College.
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Date Created: 09/21/15
Chapter 5 Guided Notes Outline how a company s immediate environment their customers company capabilities competitors and corporate partners affects their marketing strategy Customers firms use information about consumers such as purchase history etc as well as consumer trends to make informed decisions when marketing in order to increase factors such as sales customer loyalty and consumer creation Company capabilities The opportunities placed in front of a firm can either make or break a marketing strategy It is Vital for the success of a firm to properly assess and choose opportunities that will best suit the wants and needs of the firms target market Competitors Competitors will always be a concern for firms and therefore it is critical to understand their competitors strengths weaknesses and possible reactions to the firms marketing strategies Firms try very hard to impress potential customers because without them the firm would not have two legs to stand on and would most certainly fail Corporate partners Most all firms operate in sync with other firms that help them to keep business running smoothly The firms that work together to produce end goals are corporate partners Corporate partners use information that they learn and share it with other firms in the partnership which in turn helps all firms in the chain to succeed and grow L02 Explain how marketers use each element of their macroenvironment to make decisions Culture Culture is broadly defined as the shared meanings beliefs morals values and customs of a group of people Culture gets passed down through generations over time using words literature and institutions There are two basic forms of culture including countrv culture and regional culture Regional culture the way consumers make purchasing decisions based on where they live EX Marketing CocaCola as soda or pop depending on the area the consumers are living and what they commonly used for lingo Country culture visible nuances such as artifacts behavior dress symbols physical settings ceremonies language differences colors tastes and food preferences Demographics Demographics indicate the characteristics of human populations and segments In marketing demographics are used to identify consumer markets Some demographics include age gender race and income All of these demographics are very important when it comes to marketing if you do not know who your target market is a firms marketing strategy is less likely to have a successful end result Generation Z Digital Natives People who are categorized as generation Z were raised in a world where technologies such as social networks laptops and the internet were commonplace Because of this familiarity with technologies generation Z is much more globally connected than the generations previous to them This generation has more exposure to threats such as crime or terrorism because of this as well and tend to have more in common with their generation X parents Generation Y Millennial This set of people was born between 1977 and 2000 and consists of over 60000 Americans This cohort is post world war two and most are children of baby boomers Generation Y varies the most in age from teens all the way to adults who are starting their own families This generation puts strong emphasis on balance in life and breaks previous marriage standards having more single parents and partners who coparent Millenials are very tech savvy due to exposure to various technologies since birth Generation X This generation includes people born between 1965 and 1976 and represents around 41 million Americans Generation X people grew up in homes where both parents worked and faced the 50 percent possibility of having parents that ended up getting a divorce Because of this upbringing most generation X people attempt to shield their own children from threats or disappointments Generation X people possess higher spending power because they tend to get married later in life as well as purchase homes later in life as well They somewhat dislike shopping and are more cynical than their counterparts making them astute difficult customers Generation X people are very shopping savvy Baby Boomers This group of people consists of people who were born after world war two between the years of 1946 and 1964 This group accounts for 78 million Americans the largest group in the United States This group produces many consumers who are 50 plus years of age which effects marketing strategies Many baby boomers are now collecting social security which puts stress on the economy Baby boomers tend to be very individualistic and pride themselves in selfcare This group greatly in uences trends especially in the workplace Marketing adjusts to the needs of this group An example of this would be offering larger print books for those who are losing their vision Social Trends Social trends are ideas that trend within a population such as being price conscientious trying to be healthier greener or retaining consumer privacy Price sensitivity Also known as thrift this is when people embrace the idea of spending less and actively search out ways to better do so As the economy suffers more and more people become price sensitive causing them to buy more small purchases and sacrificing the larger ones An example of this would be sacrificing a big vacation and spending the money you saved on expensive Chanel lipsticks Health and Wellness Concerns Health and wellness concerns especially those for children are becoming more and more prevalent This trend has a lot to do with the doubling of teenage obesity over the past twenty years This has effected marketing by regulating marketers to produce food in more reasonably proportioned sizes Greener Consumers Green marketing involves a strategic effort by firms to supply customers with environmentally friendly merchandise Many consumers are becoming more and more concerned with the environment and this concern fuels their spending habits Marketers can combat this by offering greener options to consumers Privacy Concerns Do to the steady increase in identity theft and theft in general consumers are becoming more and more concerned about their privacy when purchasing items Marketers can combat this by offering a higher level of privacy for consumers A TimePoor Society With more and more people working full time jobs and sometimes multiple jobs for that matter it is becoming harder for consumers to find leisure time for themselves Therefore marketers must give consumers time appropriate products in order to make sales Technological Advances In the past decade the value of both products and services has increased due to technological advances Because of the increased internet use and availability and dependability on mobile devices increases sales in those areas and marketers use that information to better target consumers to purchase from them rather than from other firms Economic Situation Marketers monitor the general economic situation both in their home country and abroad because it effects the way consumers purchase merchandise and spend money Some factors that in uence the state of an economy include the rate of in ation foreign currency exchange rates as well as interest rates PoliticalRegulatory Environment The politicalregulatory environment compromises of political parties government organizations legislation and laws Organizations must fully understand and comply with any legislation regarding fair competition consumer protection or industry specific regulation The government enacts laws focused on ensuring that companies compete fairly With one another