copyright ©2009 by cengage learning inc. all rights reserved 1 prepared by amit shah frostburg...
TRANSCRIPT
Copyright ©2009 by Cengage Learning Inc. All rights reserved 1
Prepared byAmit Shah
Frostburg State University
CHAPTER
4
Designed by Eric Brengle B-books, Ltd.
MarketingLamb, Hair, McDaniel
10
The Marketing Environment
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Target Market
2
LO1
Target MarketTarget Market A defined group most likely to
buy a firm’s product.
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Social Factors
3LO2
ValuesValues
AttitudesAttitudes
LifestyleLifestyle
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Social Factors
4
LO2
Social Factors Influence:Social Factors Influence:
Products purchasedProducts purchased
Prices paid for productsPrices paid for products
Effectiveness of promotionsEffectiveness of promotions
How, where, and when people purchaseHow, where, and when people purchase
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Social Factors
5
LO2
Self-SufficiencySelf-Sufficiency
Upward MobilityUpward Mobility
Work EthicWork Ethic
ConformityConformity
Core American Values
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The Influence of Values on Buying Habits
6LO2
Ranked Characteristics of Product Quality
Reliability
Durability
Easy maintenance
Ease of use
Trusted brand name
Low price
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Component Lifestyles
7
LO2
ComponentLifestyles
ComponentLifestyles
The practice of choosing goods
and services that meet one’s
diverse needs and interests
rather than conforming to a
single, traditional lifestyle.
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Demographic Factors
8
LO3
DemographyDemography The study of people’s vital
statistics, such as their age,
race and ethnicity, and
location.
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Tweens
9
LO3
Pre- and early adolescents, age 9 to 14
Population of 20 million
Purchasing power of $21 billion in 2008
View TV ads as “just advertising”
Emerging as “the richest generation” and the “most influential generation in history”
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Teens
10
LO3
Population of 25 million in U.S.
Purchasing power of $195 billion annually
Approximately 72 hours per week tuned in electronically
68 percent of teens have created profiles on MySpace, Zanga, or Facebook
Shopping has become social sport: 62 percent love to shop
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Generation Y
Born between 1979 and 1994
Population of 73 million
Purchasing power of $200 billion annually
Researchers have found Gen Yers to be:– Impatient– Family-oriented– Inquisitive– Opinionated– Diverse– Time managers– “Street Smart”– Connected
11
LO3
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Generation X
Born between 1965 and 1978
Population of 40 million
Savvy and cynical consumers
More protective and involved with their kids
Value the importance of education
Avid buyers of the latest clothes, technology, and recreational products
12
LO3
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Baby Boomers
Born between 1946 and 1964
Population of 77 million—the largest demographic segment
$2 trillion in spending power a year
Income will continue to grow as they keep working
Four segments of baby boomers:“Looking for balance” “Confident and living well” “At ease” “Overwhelmed”
13
LO3
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Growing Ethnic Markets
14
LO4
Spending power of ethnic markets in 2008:
– Hispanics--$1 trillion– African Americans--$921 billion– Asian Americans--$526 billion
Diversity can result in bottom-line benefits to companies.
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Marketing to Hispanic Americans
15
LO4
The population’s diversity creates challenges for targeting this group.
Hispanics tend to be brand loyal, but are not aware of many U.S. brands.
68% of U.S. Hispanics have home Internet access.
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Marketing to African Americans
16
LO4
Many firms are creating products for the African American market.
Promotional dollars and media choices directed toward African Americans continue to increase.
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Marketing to Asian Americans
17
LO4
Younger, better educated, and have highest average income of all groups
Sometimes called a “marketer’s dream
Many products have been developed for Asian American market.
Cultural diversity within the Asian American market complicates promotional efforts.
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Ethnic and Cultural Diversity
18
LO4
Multiculturalism: occurs when all major ethnic groups in an area (city, county, or census tract) are roughly equally represented
U.S. trend is toward greater multiculturalism
America’s racial and ethnic patterns have taken on distinctly regional dimensions
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Economic Factors
19
LO5
Consumer’s Income
Inflation
Recession
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Purchasing Power
20
LO5
PurchasingPower
PurchasingPower
A comparison of the relative
cost of a set standard of goods
and services in different
geographic areas.
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Inflation
21
LO5
InflationInflation A measure of the decrease in
the value of the money,
expressed as the percentage
reduction in value since the
previous year.
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Recession
22
LO7
RecessionRecession A period of economic activity
characterized by negative
growth, which reduces demand
for goods and services.
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Recession Marketing Strategies
• Improve existing products and introduce new ones
• Maintain and expand customer services
• Emphasize top-of-the-line productsand promote product value
23LO5
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External Marketing Environment
24
LO1
DemographicsDemographics
SocialChangeSocial
Change
EconomicConditionsEconomicConditions
Political & Legal FactorsPolitical &
Legal FactorsTechnologyTechnology
CompetitionCompetition
EnvironmentalScanning
Target Market
External Environment (uncontrollable)
Ever-ChangingMarketplace
ProductDistributionPromotion
Price
ProductDistributionPromotion
Price
Internal (within the
organization)Marketing mix
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Technological Factors
25
• Innovation is becoming a global process.
• 25 most innovative firms achieved average profit margin growth of 3.4% per year
LO6
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Technological Factors
• U.S. excels at basic and applied research.
• Many firms use the market concept to guide research.
• New technology internally createsa long-term competitive advantage.
• External technology – Creates more efficient operation
or better products– May render existing products obsolete
26LO6
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Political and Legal Factors
27LO7
New technology Society Businesses Consumers
Laws and Regulations Protect:Laws and Regulations Protect:
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Federal Legislation
28LO7
Sherman ActClayton ActFederal Trade Commission Act Celler-Kefauver Antimerger ActHart-Scott-Rodino Act
Sherman ActClayton ActFederal Trade Commission Act Celler-Kefauver Antimerger ActHart-Scott-Rodino Act
Regulate competitive
environment
Robinson-Patman Act Robinson-Patman ActRegulate pricing
practices
Wheeler-Lea Act Wheeler-Lea ActControl
falseadvertising
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Regulatory Agencies
29LO7
Consumer Product Safety Commission
Consumer Product Safety Commission
Federal Trade Commission
Federal Trade Commission
Food & Drug AdministrationFood & Drug
Administration
Protects consumer safety in and around their homes
Prevents unfair methods ofcompetition in commerce
Enforces safety regulations for food and drug products