Marketing Environment
REVIEW TOPICS:
1.THE MICROENVIRONMENT
a.The company’s functional structure
i.Top management
ii.Finance
iii.Research & Development
iv.Purchasing
v.Manufacturing
vi.Accounting
vii.Marketing
b.Suppliers
c.Marketing intermediaries
i.Resellers
ii.Physical distribution firms
iii.Marketing service agencies
iv.Financial intermediaries
d.Customers
i.Consumer markets
ii.Business markets
iii.Reseller markets
iv.Government markets
v.International markets
e.Competitors
f.Publics
i.Financial publics
ii.Media publics
iii.Government publics
iv.Citizen-action publics
v.Local publics
vi.General public
vii.Internal publics
2.THE MACROENVIRONMENT
a.Demographic
i.Age structure
ii.Baby boomers
1.YUPPIES (Young Urban Professionals)
2.BUMPIES (Black Upwardly Mobile Professionals)
3.YUMMIES (Young Upwardly Mobile Mommies)
4.DINKs (Dual-income, no-kids couples)
5.DEWKs (Dual-earners with Kids)
6.MOBYs (Mother older, baby younger)
7.WOOFs (Well-off older folks)
iii.Generation X
iv.Generation Y
v.Changing families
vi.Geographic population shifts
vii.Education & white-collar workers
viii.Increasing diversity
b.Economics
i.Subsistence economies vs. industrial economies vs. service economies
ii.Changes in income
iii.Changes in spending patterns
1.ENGEL’s laws (As family income rises, the percent spent on food goes down, the percent spent on housing
remains the same, an dthe percent spent on other categories and savings increase)
2.variables: income level, cost of living, interest rates, savings/borrowing patterns
c.Natural Environment
i.Availability of raw materials
ii.Pollution
iii.Government intervention (EPA)
d.Technology
e.Political
i.Purposes of regulation
1.protect companies
2.protect consumers
3.protect interests of society
ii.Public policy & legislation
1.Sherman Antitrust Act (1890)
2.Federal Food & Drug Act (1906)
3.Fair Packaging & Labeling Act (1966)
4.Federal Cigarette Labeling & Advertising Act (1967)
5.Consumer Product Safety Act (1972)
6.Children’s Television Act (1990)
7.Nutrition Labeling & Education Act (1990)
iii.Increased emphasis on ethics & social responsibility
f.Cultural
i.Values
1.core beliefs
2.secondary beliefs
a.trends
i.towards healthful and natural products/lifestyles
ii.greater desire for product simplicity & honesty in advertising
iii.traditional values with a tolerant mind-set and active lifestyle
iv.balance in work, play, sleep, family
b.people’s views of themselves
i.trend towards fulfilling needs rather than boosting image
c.people’s views of others
i.trend towards activities involving communication: “we-society”
ii. polarization of political beliefs
iii. cultural "bubbles"
d.people’s views of organizations
i.trend towards cynicism & distrust of companies & organizations
e.people’s views of society
i.trend towards increased patriotism
f.people’s views of nature
i.trend towards more outdoor recreation & healthy products
g.people’s views of the universe
i.trend away from materialism & towards family, community, earth, & faith
The Marketing Environment Vocabulary
Baby boomers cultural environment demography economic environment
Engel’s laws generation X generation Y macroenvironment
Microenvironment public political environment natural environment
Marketing environment technological environment
Environmental management perspective marketing intermediaries
1.THE MICROENVIRONMENT
a.The company’s functional structure
i.Top management
ii.Finance
iii.Research & Development
iv.Purchasing
v.Manufacturing
vi.Accounting
vii.Marketing
b.Suppliers
c.Marketing intermediaries
i.Resellers
ii.Physical distribution firms
iii.Marketing service agencies
iv.Financial intermediaries
d.Customers
i.Consumer markets
ii.Business markets
iii.Reseller markets
iv.Government markets
v.International markets
e.Competitors
f.Publics
i.Financial publics
ii.Media publics
iii.Government publics
iv.Citizen-action publics
v.Local publics
vi.General public
vii.Internal publics
2.THE MACROENVIRONMENT
a.Demographic
i.Age structure
ii.Baby boomers
1.YUPPIES (Young Urban Professionals)
2.BUMPIES (Black Upwardly Mobile Professionals)
3.YUMMIES (Young Upwardly Mobile Mommies)
4.DINKs (Dual-income, no-kids couples)
5.DEWKs (Dual-earners with Kids)
6.MOBYs (Mother older, baby younger)
7.WOOFs (Well-off older folks)
iii.Generation X
iv.Generation Y
v.Changing families
vi.Geographic population shifts
vii.Education & white-collar workers
viii.Increasing diversity
b.Economics
i.Subsistence economies vs. industrial economies vs. service economies
ii.Changes in income
iii.Changes in spending patterns
1.ENGEL’s laws (As family income rises, the percent spent on food goes down, the percent spent on housing
remains the same, an dthe percent spent on other categories and savings increase)
2.variables: income level, cost of living, interest rates, savings/borrowing patterns
c.Natural Environment
i.Availability of raw materials
ii.Pollution
iii.Government intervention (EPA)
d.Technology
e.Political
i.Purposes of regulation
1.protect companies
2.protect consumers
3.protect interests of society
ii.Public policy & legislation
1.Sherman Antitrust Act (1890)
2.Federal Food & Drug Act (1906)
3.Fair Packaging & Labeling Act (1966)
4.Federal Cigarette Labeling & Advertising Act (1967)
5.Consumer Product Safety Act (1972)
6.Children’s Television Act (1990)
7.Nutrition Labeling & Education Act (1990)
iii.Increased emphasis on ethics & social responsibility
f.Cultural
i.Values
1.core beliefs
2.secondary beliefs
a.trends
i.towards healthful and natural products/lifestyles
ii.greater desire for product simplicity & honesty in advertising
iii.traditional values with a tolerant mind-set and active lifestyle
iv.balance in work, play, sleep, family
b.people’s views of themselves
i.trend towards fulfilling needs rather than boosting image
c.people’s views of others
i.trend towards activities involving communication: “we-society”
ii. polarization of political beliefs
iii. cultural "bubbles"
d.people’s views of organizations
i.trend towards cynicism & distrust of companies & organizations
e.people’s views of society
i.trend towards increased patriotism
f.people’s views of nature
i.trend towards more outdoor recreation & healthy products
g.people’s views of the universe
i.trend away from materialism & towards family, community, earth, & faith
The Marketing Environment Vocabulary
Baby boomers cultural environment demography economic environment
Engel’s laws generation X generation Y macroenvironment
Microenvironment public political environment natural environment
Marketing environment technological environment
Environmental management perspective marketing intermediaries