Chapter 5: The Marketing Environment

Question 1

marketing environment

Answer 1

uncontrollable elements outside of any organization that may affect its performance

Question 2

environmental scanning

Answer 2

systematic analysis of those elements

Question 3

marketing environment analysis framework

Answer 3

• consumers (center) influenced directly by immediate actions of the focal co, the co’s competitors, or corporate partners (make and supply products and services)
• firms and consumers indirectly influenced by macro environment

Question 4

macro env factors

Answer 4

culture- values and beliefs
demographics- pop stats
social
technological- innovation
economic- income and business
political/legal factors- laws
competitive- what other firms are doing

Question 5

immediate environment- co capabilities

Answer 5

1st factor that affects the cons is the firm itself, SWOT to determine if opportunity is attractive

Question 6

immediate env- competitors

Answer 6

competing cos tout their benefits over competitors to appeal to cons

Question 7

immediate env- corporate partners

Answer 7

parties that work with the focal firm are its corp partners

i.e., nau partnering with “happy sheep” bc animal friendly

Question 8

country cultura

Answer 8

macro env factor, universal appeal within specific identities of a CC

Question 9

regional culture

Answer 9

macro env factor, region ppl live in a particular country, the way people refer to a product category
ie, soda vs pop

Question 10

demographics

Answer 10

characteristics of populations and segments- used to define consumer markets
age, gender, ethnicity, income, edu

Question 11

demographic factors

Answer 11

319 million ppl
115 million households
49.2% men/ 50.8% women
median age- 37

Question 12

generational cohorts

Answer 12

group of ppl of the same generation who have similar purchase behaviors

Question 13

generation Z

Answer 13

2001-2014

• attitudes
• access to info
• cynical towards ads
• socially connected
• digital natives

Question 14

gen y and millennials

Answer 14

1977-2000

• largest cohort 75+ million
• wide range of life cycles
• inquisitive, diverse, time managers, multitaskers, identify with brands

Question 15

gen x

Answer 15

1965-1976

• focus on children
• helicopter parents
• biggest spenders at mass merchandisers
• value edu
• convenience is important

Question 16

baby boomers

Answer 16

1946-1964

• control 80% of personal wealth
• more active that previous “never age”
• postponing retirement
• involved in lives of adult children/grandchildren

Question 17

ethnicity

Answer 17

• currently minorities represent 37% of US pop
• 50.4% of all children belong to a minority group
• assimilating but strong interest in preserving native heritage

Question 18

education

Answer 18

higher levels of education leads to better jobs/higher incomes

Question 19

gender

Answer 19

male/female roles have been blurred

Question 20

income

Answer 20

wealthiest 1% controls 34.6% of net worth , family income slightly over inflation, but health care costs, property taxes, and tuition bills have risen much faster than inflation

Question 21

social trends

Answer 21

greater emphasis on thrift, health, and wellness concerns, greener, privacy, time-poor

Question 22

thrift

Answer 22

more frugal

lipstick effect- splurge on lipstick, but no vacation

Question 23

technological advances

Answer 23

technology has impacted every aspect of marketing

• new products
• new forms of communication
• new retail channels

Question 24

economic situation

Answer 24

factors=inflation, foreign currency exchange rates, interest rates

Question 25

inflation

Answer 25

persistent increase in the prices of goods and services

Question 26

foreign currency fluctuations

Answer 26

influence consumer spending as euro becomes more costly to Americans, whereas products made in the US cost less for Euro consumers

Question 27

interest rates

Answer 27

the cost of borrowing money from a bank, they agree to pay back the loan, plus the interest

Question 28

recession

Answer 28

falling income/employment/production | -focus on value

Question 29

recovery

Answer 29

rising income/employment/production | -focus on- buy now for better times later

Question 30

prosperity

Answer 30

high income/employment/production | -focus on convenience/reward

Question 31

depression

Answer 31

low income/employment/production | -focus on basic needs

Question 32

where do we find out about the economic situation/business cycle

Answer 32

GDP country by country recovery employment data

Question 33

political/regulatory environment

Answer 33

- political parties, gov't organizations, & legislation & laws - organizations must comply with any legislation regarding fair competition, consumer protection, or industry-specific regulation

Question 34

roolz

Answer 34

1- no false/misleading advertising practices that may mislead consumers 2-no harmful/hazardous materials 3-organizations must adhere to fair and reasonable business practices when they communicate with consumers

Question 35

responding to the environment

Answer 35

respond to consumers quickly and accurately get ahead | ie, lululemon

Question 36

direct competition

Answer 36

similar/same product | disney vs universal

Question 37

indirect competition (product)

Answer 37

substitable items- performs same functio

Question 38

competition for discretionary spending

Answer 38

other possible uses for the money