Marketing 330 Chapter 3

ENVIRONMENTAL SCANNING
p. 60 The process of acquiring info on events outside the org to identify and interpret potential trends.
Social Forces: Culture
Economic Forces – see def
Technological Forces
Competitive Forces
Regulatory Forces
Environmental Trends
p. 60 typically arise from 5 sources:
Social, economic, technological, competitive, and regulatory
SOCIAL FORCES
p. 60 The demographic characteristics and the culture of the population
DEMOGRAPHICS
p. 60 Description of a population according to the characteristics such as age, gender, ethnicity, income and occupation.
Demographic characteristics
p. 60 population profile, description of generational cohorts and a description of racial and ethnic diversity
How many people in the world today
pp. 60-61 6.5 billion; led to POPULATION EXPLOSION w/ growth primarily in Africa, Asia and Latin America but by 2050, India would have 1.69 billion and China 1.31 billion.
BABY BOOMERS
p. 61 The generation of children born between 1946-1964. 76 million; 10K/hour retiring and all will be 65 or older by 2030
GENERATION X
p. 61 Members of the US population born between 1965-1976 15 percent of the population; baby bust period b/c less children born each year; consumers who are self-reliant supportive of racial and ethnic diversity and better educated largest segment of business travelers
GENERATION Y
p. 61 The 72 million Americans born between 1977-1994; Millennials, period of increasing births b/c baby boomers had kids – echo-boom or baby boomlet. Exerts influence on music, sports, computers, video games and communication/technology. Interested in sustainability
MULTICULTURAL MARKETING
p. 62 Marketing programs that reflect unique aspects of different races. African American, Native American, Alaska Native, Asian American or Native Hawaiian make up 1/3 of population. Hispanics, African & Asian Americans will spend $1.5 trillion, $1.2 trillion and $775 billion each year.
CULTURE
p. 62 The set of values, ideas and attitudes that is learned and shared among the members of a group.
1. 3 Generational Cohorts
Baby Boomers, Gen X & Gen Y
2. Why are companies developing multicultural marketing programs?
1) The racial and ethnic diversity of the US is changing rapidly due to the increases in cultural ethnicity
2) An accurate understanding of the culture of each group is essential if marketing efforts are to be successful
3) Based on an analysis of population demographic data, racial and ethnic groups tend to be concentrated in geographical areas
3. How are important values such as sustainability reflected in the marketplace today?
Many desire and practice sustainability to preserve the environment w/ hybrid cars, light bulbs. Consumers prefer brands with strong link to social action (like Ben & Jerry’s or Brita water filters). Companies are responding by making products that use renewable energy and less packaging.
MULTI-CULTURAL MARKETING
p. 62 Marketing programs that reflect unique aspects of different races
CULTURE
p. 62 The set of values, ideas and attitudes that is learned and shared among the members of a group
ECONOMY
p. 63 Pertains to the income and resources that affect the cost of running a business or household
Economic forces
p. 63-64 Macroeconomic conditions
Consumer Income
Disposable Income
Discretionary Income
TECHNOLOGY
p. 65 Inventions from applied science or engineering research
MARKETSPACE
p. 66 An info and comms based electronic exchange environment occupied by digitized offerings occupied by sophisticated computer and telecommunication technologies.
COMPETITION
p. 66 Alternative firms that could provide a product to satisfy a specific market’s needs.
REGULATION
p. 67 Restrictions that state and federal laws place on business
CONSUMERISM
p. 68 A movement started to increase the influence, power, and rights of consumers in dealing with institutions
ETHICS
p. 69 The moral principles and values that govern the activities and decisions of an individual or a group
SELF-REGULATION
p. 69 An alternative to government control, whereby an industry attempts to police itself
CONSUMER BILL OF RIGHTS
p. 70 Codified the ethics of exchange between buyers and sellers, including rights to safety; to be informed, to choose and to be heard
CODE OF ETHICS
p. 71 A formal statement of ethical principles and rules of conduct
MORAL IDEALISM
p. 72 A personal moral philosophy that considers certain individual rights or duties as universal regardless of the outcome
UTILITARIANISM
p. 72 A personal moral philosophy that focuses on the “greatest good for the greatest number”
SOCIAL RESPONSIBILITY
The idea that organizations are part of a larger society and are accountable to that society for their actions.
GREEN MARKETING
p. 73 Marketing efforts to produce, promote and reclaim environmentally sensitive products.
CAUSE MARKETING
p. 73 Tying the charitable contributions of a firm directly to sales produced through the promotion of it’s products
Sustainable development
p. 74 involves conducting business in a way that protects the natural environment while making economic progress
Stakeholder responsibility
p. 73 focuses on the obligations an org has to those who can affect achievement of its objectives
Profit Responsibility
p. 73 holds that companies have a simple duty: to maximize profits for their owners or stockholders. Nobel Laureate Milton Friedman.
Societal Responsibility
p. 73 obligations that an org has to the preservation of ecological environment and to the general public
Economic Espionage
p. 70 clandestine (secret) collection of trade secrets or proprietary info about a company’s competitors. It is illegal and unethical and carries serious criminal penalties.
Business Cultures
p. 70 comprise the effective rules of the game, the boundaries between competitive and unethical behavior and the codes of conduct in business dealings.