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The Marketing Environment2

Cont

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• Environmental forces that affect the company’s ability to serve its customers.

– Demographic environment.– Economic environment.– Natural environment.– Technological environment.– Political environment, and – Cultural environment.

• How companies can react to the marketing environment.

ROAD MAP: Previewing the ConceptsROAD MAP: Previewing the Concepts

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10 Megatrends Shaping the Consumer Landscape

• Aging boomers• Delayed retirement• Changing nature of

work• Greater educational

attainment• Labor shortages

• Increased immigration• Shifting birth trends• Widening geographic

differences• Changing age

structure

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Environmental Forces

Demographic

EconomicPolitical-Legal

Socio-CulturalTechnological

Natural

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Population and Demographics

• Size

• Growth rate

• Age distribution

• Ethnic mix

• Educational levels

• Household patterns

• Regional characteristics

• Movement

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Mattel Markets in China

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Population Age Groups

Preschool

School-age

Teens

25-40

40-65

65+

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Schwab’s Chinese-language Web site

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Household Patterns

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Economic Environment

$ Purchasing Power$ Income Distribution$ Savings Rate$ Debt$ Credit Availability

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Types of Industrial Structures

Industrialeconomies

Subsistenceeconomies

Raw-material-exporting

economies

Industrializingeconomies

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India – An Industrializing Economy

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Saudi Arabia – A Raw-Material Exporting Economy

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The Gap “look” is recognizable everywhere

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Social-Cultural Environment

Views of themselvesViews of themselves

Views of othersViews of others

Views of natureViews of nature

Views of organizationsViews of organizations

Views of societyViews of society

Views of the universeViews of the universe

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Most Popular American Leisure Activities: How about in Japan?

• Walking• Gardening• Swimming• Photography• Bicycling• Fishing

• Bowling• Camping• Jogging• Free weights• Golf• Continuing

education

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Natural Environment

Shortage of raw materials

Increasedenergy costs

Anti-pollutionpressures

Governmentalprotections

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Technological Environment

Pace of change

Opportunitiesfor innovation

Varying R&D budgets

Increased regulationof change

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Political-Legal Environment

Increase in business legislation

Growth of specialinterest groups

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Unit Pricing on Store Shelves

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Marketing Debate

Take a position:

1. Age differences are fundamentally

more important than cohort effects.

2. Cohort effects can dominate age

differences.

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Marketing Discussion

What brands do you feel successfully

speak to you? Effectively target your

age group? Why? Which ones do not?