The Marketing
Environment

Chapter 4
Lamb, Hair, McDaniel
2014-2015

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Target Market
A defined group most likely to buy a product • Changes as consumers age
• External elements change consumers’ desires

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Social Factors
Attitudes
Attitudes

Values
Values

Lifestyles
Lifestyles
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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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4

The Role of Social Media in
Communication
Social networking has changed the game when it comes to opinion sharing. Now, consumers can reach many people at once with their views—and can respond to brands and events in real time.

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Teenagers and young adults are more likely to view social networks as a valuable source of information.
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5

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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6

Growing Ethnic Markets

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The United States Hispanic consumer market is now larger than all but 13 world economies •

African American buying power increased
73 percent between 2000 and 2012

•

Asian American buying power increased
165 percent between 2000 and 2012

•

About one in three U.S. residents is a member of a minority group

•

The United States will flip to majorityminority completely in 2041
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7

Economic Factors
Consumers’
Income

Purchasing
Power

Inflation

Recession
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Research

Basic
BasicResearch
Research

Applied
Applied
Research
Research

Pure research that aims to confirm an existing theory or to learn more about a concept phenomenon.
An attempt to develop new or improved products

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9

Political and Legal Factors
Laws and Regulations Protect:





New technology
Society
Businesses
Consumers

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State Laws
•

Legislation that affects