Lecture Marketing: The core (5/e): Chapter 3 – Kerin, Hartley, Rudelius

                  McGraw­Hill/Irwin                                                                                             Copyright © 2013 by The McGraw­Hill Companies, Inc.  All rights reserved.


LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 3, YOU SHOULD BE ABLE TO:

LO1

Explain the purpose of environmental
scanning.

LO2

Describe social forces such as
demographics and culture.

LO3

Discuss how economic forces affect
marketing.

LO4

Describe how technological changes
can affect marketing.
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LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 3, YOU SHOULD BE ABLE TO:

LO5

Discuss the forms of competition that
exist in a market.

LO6

Explain how regulatory forces ensure
competition and protect producers and
consumers.

LO7

Identify factors that influence ethical
and unethical marketing decisions.

LO8

Describe the different concepts of
social responsibility.
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WHAT IS THE WORLD’S THIRD LARGEST NATION?
THE SOCIAL NATION CREATED BY FACEBOOK!

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FIGURE 3-1 Environmental forces affect the

organization, its suppliers, and its customers

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LO2

SOCIAL FORCES
DEMOGRAPHICS—POPULATION



Environmental Scanning



Social Forces



Demographics
• Population at a Glance
 Population Explosion

• U.S. Population
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LO2

SOCIAL FORCES
DEMOGRAPHICS—GENERATIONAL COHORTS



Baby Boomers: 1946 - 1964



Generation X: 1965 - 1976



Generation Y: 1977 - 1994



Millennials: 1995+

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LO2

Ameritrade, American Airlines, and HTC
Which generational cohort is being reached?

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LO2

MAKING RESPONSIBLE DECISIONS
Millennials Are Going to Change the World!

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LO2

SOCIAL FORCES
DEMOGRAPHICS—RACIAL & ETHNIC DIVERSITY



Composition



Trends
• African Americans
• Hispanics
• Asian Americans



Multicultural
Marketing
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LO2

SOCIAL FORCES
DEMOGRAPHICS—THE AMERICAN HOUSEHOLD



Marital Status



Cohabitation



Blended Family

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LO2



SOCIAL FORCES
DEMOGRAPHICS—POPULATION SHIFTS

Regional Shifts in the U.S.: 2012

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LO2



SOCIAL FORCES
DEMOGRAPHICS—POPULATION SHIFTS

Shifts Within States
• Rural
• Cities
• Suburbs
• Exurbs
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LO2



SOCIAL FORCES
DEMOGRAPHICS—POPULATION SHIFTS
Statistical Areas (SA): Illinois
• Combined SA: NE Illinois

• Micropolitan SA: Dixon, IL

• Metropolitan SA: St. Louis, MO & SW IL

• Metropolitan Division: Chicagoland

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SOCIAL FORCES

LO2

CULTURE



Culture



Cultural Values

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LO3



ECONOMIC FORCES
MACROECONOMIC CONDITIONS

Economy
• Inflation

• Recession

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LO3

ECONOMIC FORCES
CONSUMER INCOME



Gross Income



Disposable Income



Discretionary Income
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LO4



TECHNOLOGICAL FORCES
TECHNOLOGY OF TOMORROW

Technology
• Social Networks
• Natural User Interfaces
• Green Infrastructure
• Biotechnology
• Tablet Devices, Etc.
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LO4



TECHNOLOGICAL FORCES
IMPACT ON CUSTOMER VALUE

Impact on Customer Value
• Plummeting Costs
• New Products



Marketspace



Electronic Commerce
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LO4

New Yorker, GoToMeeting, and Spot Connect
What products might be replaced with these?

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LO5



COMPETITIVE FORCES
ALTERNATIVE FORMS OF COMPETITION

Competition
• Pure Competition
• Monopolistic Competition
• Oligopoly
• Pure Monopoly
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FIGURE 3-A Continuum of competition

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LO6

REGULATORY FORCES
FEDERAL LEGISLATION



Regulation



Protecting Competition
• Sherman Antitrust Act (1890)
• Clayton Act (1914)
• Robinson-Patman Act (1936)
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LO6



REGULATORY FORCES
FEDERAL LEGISLATION

Protecting Producers and
Consumers
• Patent Law

• Copyright Law
• Digital Millennium Copyright Act (1998)
• Nutritional Labeling
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LO6



REGULATORY FORCES
FEDERAL LEGISLATION

Protecting Producers and
Consumers
• Consumer Product Safety Act (1972)
• Consumer Product Safety Commission
• Consumerism

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