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28 Cards in this Set
- Front
- Back
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1. TheExternal Environment what exactly?
2. EnvironmentalManagement is |
1. Unlessmarketing managers understand the external environment, the firm cannotintelligently plan for the future.
2. whena company implements strategies that attempt to shape the external environmentwithin which it operates.r. |
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AmericanValues
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Core American Values-
a. Self Sufficiency b. Upward Mobility c. Work Ethic d. Conformity Emerging Trends a. Getting off the grid b. Meaningful green c. Eco techmed |
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TheInfluence ofValues on Buying Habits
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RankedCharacteristics of Product Quality
a. Reliability b. Durability c. Easy maintenance d. Ease of use e. Trusted brand name f. Low price |
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DemographicFactors
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People are the basis for any market•Demographiccharacteristics relate to buyer behavior
•Demographiccohorts have their own needs, values, and consumption patterns. |
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Tweens
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Tween
a. Pre- and early adolescents, age8 to 12 b. Population of 20 million c. Directly spend about $50 billionannually d. Parents spend $150 billionon tweens annually f. View TV ads as “just advertising”s |
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Teens
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-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 |
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Generation Y
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•Bornbetween 1979 and 1994
•Surpassedpopulation of baby boomers •TwoStages: 1) Those born in 1994 fit closer to the Teen cohort. 2) Those born in1979 have established careers and started families.•Purchasingpower of $200billion annuallyxCoord"v_texCoord( |
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GenerationX
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•Born between 1965 and 1978
•Population of 40million •Independent, resilient, adaptable,cautious, and skeptical •71 percenthave children under age 18•Home ownership is an important goal •Avid buyers of the latest clothes,technology, and recreational products |
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BabyBoomers
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•Born between 1946 and 1964
•Population of 75million •Working longer to compensate for economicdownturn, which affected retirement savings•The market of services directed atseniors is one of the fastest growing business markets |
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GrowingEthnic Markets
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•Estimatedpurchasing power of ethnic markets in 2013:
•Hispanics:$1.5 trillion •AfricanAmericans: $1.2 billion •AsianAmericans: $775 billion Theminority -population of the United States in 2011 reached 110 million |
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Marketingto Hispanic Americans
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a. TheHispanic population’s diversity creates challenges for targeting this market.
b. 60percent of Hispanics are of Mexicandescent. c. Highlyresponsive to new media: mobile marketing and social media marketing |
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MarketingtoAfrican Americans
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•47 percent are between 18 and 49years old•Morefirms are creating products for the African American market.
•Promotionaldollars and media choices directed toward African Americans continue toincrease. |
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Marketingto Asian Americans
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•Younger,better educated, and have highest average income of all groups
•Earlyadopters of latest digital gadgets.•Culturaldiversity within the Asian American market complicates promotional efforts. |
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EconomicFactors
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-Consumer Income
-Purchasing Power -Inflation -Recession |
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Consumers’Incomes
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•Median U.S. household income in 2012 was approximately $50,000.
•Incomes have risen at a slow pace inrecent years. •Educationis the primary determinant of earning potential. |
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Purchasing Power is ..
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a comparison of income versus therelative cost of a set standard of goods and services in different geographicareas.
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Inflation is...
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a measure of the decrease in the value ofmoney, expressed as the percentage reduction in value since the previous year.
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Recession is
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a period of economic activitycharacterized by negative growth, which reduces demand for goods and services.
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Research
A. Basic? b. Applied? |
BasicResearch - Pure research that aims to confirm anexisting theory or to learn more about a concept phenomenon.
AppliedResearch - An attempt to develop new or improvedproducts |
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StimulatingInnovation
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a. Build Scenarios
b. Enlist the web c. Talk to early adopters d. Use marketing research e. Creative an innovative enviroment f. Cater to entrepreneurs |
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Politicaland Legal Factors
Law and Regulations protect : |
Newtechnology
Society Businesses Consumers |
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…….anorder of the Federal Trade Commission requiring it to cease and desist fromadvertising that its product, Listerine Antiseptic mouthwash, prevents, cures,or alleviates the common cold. The FTC order further requires Warner-Lambert todisclose in future Listerine advertisements that: "Contrary to prioradvertising, Listerine will not help prevent colds or sore throats or lessentheir severity
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Federal Legislation
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StateLaws
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•Legislationthat affects marketing varies state by state.
•Oregon:limits utility advertising to 0.5 percent of net income. •California: bans trans fats inrestaurants and bakeries. |
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RegulatoryAgencies
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Bureausof the FTC
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ConsumerPrivacy
Government Actions
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a. CAN-SPAMAct
b. Children’sOnline Privacy Protection Act Rule |
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Competitive Factors
How many competitors? How big are competitors? How interdependent isthe industry? |
Market Share and Profits
- Firmsmust work harder to maintain profits and market share. Global Competition •Moreforeign firms are entering U.S. market. - Foreignfirms in U.S. now compete on product quality. |
