when a company implements strategies that attempt to shape the external environment within which it operates
__________ _________ is perhaps the most difficult external variable for marketing managers to forecast, influence, or integrate into marketing plans.
Social factors influence the products people buy; the prices paid for products;
strongly held belief
4 american values
– Self-sufficiency: Every person should stand on his or her own two feet.
– Upward mobility: Success would come to anyone who got an education, worked hard, and played by the rules.
– Work ethic: Hard work, dedication to family, and frugality were moral and right.
– Conformity: No one should expect to be treated differently from anybody else.
U.S. consumers rank the characteristics of product quality as
(3) easy maintenance,
(4) ease of use,
(5) a trusted brand name, and
(6) a low price.
component lifestylesthe practice of choosing goods and services that meet one’s diverse needs and interests rather than conforming to a single, traditional lifestyle
Social media are making profound changes in the way we obtain and consume information…. how is social media doing this?
consumers are interacting; sharing beliefs, values, ideas, and interests; and, of course, making purchases at a dizzying rate.
how do marketers use social media?
to engage customers in their products and services.
the study of people’s vital statistics, such as age, race and ethnicity, and location.
Demographics are significant because the basis for any market is……
– America’s tweens (ages 8 to 12) are a population of more than twenty million
– these young consumers are directly or indirectly responsible for sales of over $180 billion annually. Tweens themselves spend about $43 billion per year, and the remainder is spent by parents and family members for them.*
– population 25 million
-95% on internet
-pass technology down to parents
-seek peer affirmation
– people born between 1979 and 1994
– Millennials were a smaller cohort than baby boomers
– purchase power of 200 billion
– people born between 1965 and 1978
– population 50 million
– independent, adaptable, cautious
– 31% total income
– persons born between 1946 and 1964)
control 67% of countries wealth
– change brands and try new things
– outspend younger adults 2:1 ratio
Marketing to Hispanic Countries
– Nearly 60 percent of Hispanic Americans are of Mexican descent.
– Hispanics believe that the number one way they contribute to American society is through their commitment to family.
– prefer products from native country
– more family related products
marketing to african americans
– Black Americans want companies to recognize their unique culture
– African Americans are 30 percent more likely to believe that diversity in advertising is important and 38 percent are more likely to make a purchase when advertisements include African American people.
– Black Americans tend to be loyal to both brands and stores;
marketing to asian amaericans
– population reached 19 million
– highest family income of 67,000
-53% have college degree
Asian Americans like to shop at stores owned and managed by other Asian Americans.
Asian Americans are big adopters of technology
economic factors in evironment
– consumer income
– The annual median household income in the United States in 2015 was approximately $52,000
-Census data shows that average family incomes, when adjusted for inflation (discussed later in the chapter), fell around eight percent between 2007 and 2012.
– Education is the primary determinant of a person’s earning potential.
– 1 percent of workers with only a high school education earn over $100,000 annually. By comparison, 13 percent of college- educated workers earn six figures or more.
a comparison of income versus the relative cost of a standard set of goods and services in different geographic areas
is a measure of the decrease in the value of money, expressed as %
what do business do when their is low inflation?
In times of low inflation, businesses seeking to increase their profit margins can do so only by increasing their efficiency.
– is a period of economic activity characterized by negative growth which reduces goods and services
pure research that aims to confirm an existing theory or to learn more about a concept or phenomenon
attempts to develop new or improved products.
what are 6 factors pf stimulating innovation?
– build scenarios
– enlist the web
– talk to early adapters
– use market research
– create innovative environment
– cater to entrpreneurs
firms must identify mobile moments and context.
example of building scenerios
For example, he found that customers preferred searching the lot for the best available car right from the airport bus. Krispy Kreme figured out that one of its key moments was right when fresh doughnuts came off of the line. To take advantage of this moment, the company built an app that lets customers know when hot doughnuts are available near them
Enlisting the web
have created Web sites that act as literal marketplaces of ideas where innovators can go to look for help with scientific and business challenges
Talking to early adopters
1st to buy things
more ris prone
use marketing research
Firms find out what customers like and dislike about their products and competitors’ products.
Creating an innovative environment
They create intranets to encourage sharing ideas.
catering to entreprenuers
invest in employees
sherman act of 1890
Makes trusts and conspiracies in restraint of trade illegal; makes monopolies and attempts to monopolize misdemeanors.
Federal trade commission act
Created the Federal Trade Commission to deal with antitrust matters; outlaws unfair methods of competition.
robinson- patman act
Prohibits charging different prices to different buyers of merchandise of like grade and quantity; requires sellers to make any supplementary services or allowances available to all purchasers on a proportionately equal basis.
Broadens the Federal Trade Commission’s power to prohibit practices that might injure the public without affecting competition; outlaws false and deceptive advertising.
can spam act
Protects consumers against unwanted e-mail, or spam.
consumer product safety commission
protects consumer safety in and around their homes
food and drug administration
enforces safety regulation for food and drug products
federal trade commission
prevents unfair methods of competition in commerce
bureau of competition
– reviews mergers
-challenge anti competitive products
– promotes competition
– promotes information
Bureau of consumer protection
– enforces laws that protect consumers
– empowers consumers with info
-communicate with consumers about fraud and theift
what are 3 competitive factors?
– how big are the competitors
– how many competitors
-how interdependent is the industry
competition for market share
– firms must work harder to maintain profits and market share ( vending machine)
competition for global markets
Many foreign competitors also consider the United States to be a ripe target market. Thus, a U.S. marketing manager can no longer focus only on domestic competitors.