Chapter 5: Analyzing the Marketing Environment

macro-environmental factors
aspects of the external environment that affect a company’s business, such as the culture, demographics, social issues, technological advances, economic situation and political environment
culture
set of values, guiding beliefs, understandings, and ways of doing things shared by members of a society
exists on 2 levels: visible artifacts and underlying values
country culture
entails easy to spot visible nuances that are particular in a country
ex. dress, symbols, language, color
A firm’s macroenvironment includes all of the following EXCEPT
a. competition.
b. political/legal issues.
c. economics.
d. culture.
e. demographics.
competition
Which ethnic group in the U.S. tends to earn more, have more schooling, and be more likely to be professionally employed or own a business?
Asian
Laws that prohibit the formation of monopolies or alliances that would damage a competitive marketplace benefit consumers through
increased choices
Gretchen has a job that requires working late several nights a week. This puts a lot of strain on her to find time to shop and prepare meals for her family. Grocery stores recognize the importance of consumers like Gretchen and have responded in all of the following ways except
a. developing meals with precut and premeasured ingredients that would allow Gretchen to cook them at home.
b. advertising their products heavily on daytime television.
c. creating ready-to-eat meals that would allow Gretchen to have freshly prepared meals.
d. staying open late.
e. using creative checkout procedures so Gretchen can finish her shopping quickly.
advertising their products heavily on daytime television
Christy, who was born in 1955, advocated for casual Friday at her workplace. Christy is a member of which generational cohort?
Baby Boomer
regional culture
the influence of an area within a country in which people live
demographics
information about the characteristics of human populations and segments
ex. age, gender, income and education
generational cohort
a group of people of the same generation (typically have similar purchase behaviors because they have shared experiences and are in the same stage of life
Generation Z (Gen Z)
also known as the Digital Natives because people in this group were born into a world that already was full of electronic gadgets and digital technologies, like the Internet and social networks
Generation Y (Gen Y)
generational cohort of people born between 1977 and 1995; biggest cohort because of the original postwar baby boom
Millennials
consumers born between 1997 and 2000 and the children of the Baby Boomers
Generation X (Gen X)
consumers born between 1965 and 1976
Baby Boomers
consumers born after World War II, between 1946 and 1964
green marketing
involves the strategic effort by firms to supply customers with environmentally friendly merchandise
greenwashing
exploiting a consumer by falsely marketing products as environmentally friendly, with the goal of gaining public approval and sales
inflation
refers to the persistent increase in the prices of goods and services
foreign currency fluctuations
changes in the value of a country’s currency relative to the currency of another country; can influence consumer spending
interest rates
the cost of borrowing money
political/regulatory environment
made up of political parties, governmental organizations, and legislation/laws
Part of the social trend toward health and wellness is a concern about the increasing degree of obesity in the United States. Related to this, the text notes the increasing popularity of
yoga
Successful firms focus their efforts on satisfying customer needs that
match their core competencies
One drawback to marketing products on smartphones compared to other kinds of web experiences is
the smaller screen means that less information must convey the same brand image
The United States has often been called the melting pot society, integrating people from many cultures into the social fabric of the country. The challenge for marketers is to determine whether a group’s culture
can be used as a relevant identifier for a particular target group
One of the goals of value-based marketing is
to offer greater value than competitors offer
Which of the following is an example of greenwashing?
a. The Smiths installed energy-saving light bulbs in their rental apartment buildings.
b. The corner Laundromat only stocks phosphate-free detergent in its vending machines.
c. A company charges more for a hybrid car than for a similar gas model.
d. A company donates money to a school reading project so it can advertise itself as environmentally friendly.
e. A company markets a product made from recycled glass bottles.
A company donates money to a school reading project so it can advertise itself as environmentally friendly
Which generation is also known as Millennials?
Gen Y
Which statement about the changing ethnicity in the United States is TRUE?
a. In spite of increases in the Hispanic population, Hispanic buying power is expected to maintain its current level.
b. Asian Americans are the slowest growing minority population.
c. African American U.S. households are more affluent than previous studies suggested.
d. Hispanics differ vastly from other groups in America in terms of consumer behavior.
e. Minorities now represent almost half of the population in the United States.
African American U.S. households are more affluent than previous studies suggested
The shared meanings, beliefs, morals, values, and customs of a group of people constitute their
culture
Which of these is a macroenvironmental factor?
culture
Yuri is considering a new promotional campaign in which he will compare his products to those of his competitors. Before initiating the promotional campaign, Yuri will likely assess his competitors’ strengths, weaknesses, and
likely reaction to Yuri’s promotional activities