MKT 3000 CH 3

Demography

the study of human populations—size, density, location, age, gender, race, occupation, and other characteristics.

Demographic environment

involves people, and people make up markets.

Economic environment

Consumers adopted a new back-to-basics sensibility in their lifestyles and spending patterns. To serve the tastes of these more financially frugal buyers, companies like Target are emphasizing the “pay less” side of their value propositions.

Natural Environment

the physical environment and the natural resources that are needed as inputs by marketers or that are affected by marketing activities.

Trends in the Natural Environment

•Growing shortages of raw materials

•Increased pollution

•Increased government intervention

•Developing strategies that support environmental sustainability

Environmental sustainability

Involves developing strategies and practices that create a world economy that the planet can support indefinitely.

Why is generational marketing important?

It is important in segmenting people by lifestyle or life stage instead of age.

Trends in the Natural Environment

•Growing shortages of raw materials

•Increased pollution

•Increased government intervention

•Developing strategies that support environmental sustainability

What’s important about the technological enviornment?

•Most dramatic force in changing the marketplace

•New products, opportunities

•Concern for the safety of new products

The Political and Social Environment

Determines how things get made and sold in the country

What is the Cultural Enviornment?

The cultural environment consists of institutions and other forces that affect a society’s basic values, perceptions, and behaviors.

Cause Related Market

Social causes companies participate in

Core Beliefs

Beliefs and values are persistent and are passed on from parents to children and are reinforced by schools, churches, businesses, and government.

Secondary Belief

Beliefs and values are more open to change and include people’s views of themselves, others, organizations, society, nature, and the universe.

The Cultural Environment shifts what aspects?

•People’s views of themselves

•People’s views of others

•People’s views of organizations

•People’s views of society

•People’s views of nature

•People’s views of the universe

Views on How Companies Respond

Uncontrollable: React and adapt to forces in the environment

Proactive: Take aggressive actions to affect forces in the environment

Reactive: Watch and react to forces in the environment

Marketing intermediaries

They are firms that help the company to promote, finance, sell, and distribute its goods to final buyers.