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1
Discuss the external environment of marketing, and explain how it affects a firm
2
Describe the social factors that affect marketing 3
Explain the importance to marketing managers of current demographic trends
4
Explain the importance to marketing managers of growing ethnic markets
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5
Identify consumer and marketer reactions to the state of the economy
6
Identify the impact of technology on a firm
7
Discuss the political and legal environment of marketing
8
Explain the basics of foreign and domestic competition (C) 2014 Cengage Learning Inc. All Rights Reserved
3
The External
Marketing Environment
Discuss the external environment of marketing, and explain how it affects a firm 4
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1
Target Market
A defined group most likely to buy a product • Changes as consumers age
• External elements change consumers’ desires
1
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5
The External Environment
Unless marketing managers understand the external environment, the firm cannot intelligently plan for the future.
Environmental Management is… when a company implements strategies that attempt to shape the external environment within which it operates. 1
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6
Social Factors
Describe the social factors that affect marketing
2
7
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Social Factors
Attitudes
Attitudes
Values
Values
Lifestyle
Lifestyle
2
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8
American Values
Core American
Values
Emerging Trends
Self-Sufficiency
Self-Sufficiency
Getting
Getting off off the the grid grid Upward
Upward Mobility
Mobility
Meaningful
Meaningful green green Work
Work Ethic
Ethic
EcoTechMed
EcoTechMed
Conformity
Conformity
2
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9
The Influence of
Values on Buying Habits
Ranked Characteristics of Product Quality
Reliability
Durability
Easy maintenance
Ease of use
Trusted brand name
Low price
2
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10
Component Lifestyles
The practice of choosing goods and services that meet one’s diverse needs and interests rather than conforming to a single, traditional lifestyle.
Today’s consumers want multifunctional products 2
No longer defined only by occupation
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11
The Role of Social Media in
Communication
Social Media allow the creation and exchange of user-generated content and include several formats that allow for:
•One-to-one communication
•One-to-many communication
•Many-to-many communication
2
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12
Demographic Factors
Explain the importance to marketing managers of current demographic trends
3
13
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Demographic Factors
People are the basis for any market
• Demographic characteristics relate to buyer behavior
• Demographic cohorts have their own needs, values, and consumption patterns. 3
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14
Tweens
Pre- and early adolescents, age 8
to 12
Population of 20 million
Directly spend about $50 billion annually Parents spend $150 billion on tweens annually
View TV ads as “just advertising”
3
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15
Teens
Population of about 25 million
93 percent of U.S. Teens are on the Internet
View shopping as a social sport
50 million teens around the world are on Facebook
The average teen spends about
$45 per week
3
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Generation Y
• Born between 1979 and 1994
• Surpassed population of baby boomers
• Two Stages: 1) Those born in 1994 fit closer to the Teen cohort. 2) Those born
