Lecture 4 Flashcards
Marketing Environment
This consists of what marketers have control and no control over:
- Control: marketing mixes
- No control: demographics, income, recession, inflation, target market generation, social media and social factors. Marketers instead have to prepare for these factors
Target Market:
The group of customers or organizations that businesses are looking to implement their marketing mix to generate a positive transaction.
Understanding the external environment:
- Understanding your current customers
- How they make decisions
- Identify the most valuable customers
- How your products compare to competitor’s products
Social factors
The most difficult to change, incorporate and predict using marketing plans. They can influence:
- how much people are willing to pay
- what products they buy
- How effective advertisements are
- how, when, and why people purchase products (incentitive)
- examples: core american values, and demographics and social media
Core american values
- Individualism
- Work ethic
- Equality
- Self-sufficiency
- Achievement orientation
Social media
- Engages consumers with products and services
- humanizes brands - Places where consumers share ideas, interests and values-get info
Demographics:
- tweens–future consumers
- Teens-influence and pass on tech to parents
- Millenials (1979-1994)-200 billion dollar market
- Generation X (1965-1978)-Prioritize savings for children’s education, familiar with digital media
- Baby boomers (1946-1964)-spend more money, and are more easily persuaded by traditional media rather than digital
- Asian americans-highly educated, good income and tech savvy
- Hispanic americans-open to bicultural, bligual advertisments, pride in culture, open to into of new cultures
- African American- want brands to support social causes, loyal to both brands and stores
9.
Economic factors
-consumers income
-purchasing power- ability to buy things based on money available
-inflation-price
-recession-price
-
Recession
Demand for products and services go down, and price goes down
Consumer income
- avg. is 57,000 dollars
- correlates with education level
- Stores catering to poor people are doing well in recent years
Tech. and innovation
- more innovation leads to more success
- buisnesses must continously produce new technologies
- workers are encouraged to innovate
- create an innovation environment
- cater for entrepreneurship
Stimulating innovation-
Different approaches to innovation include:
- Building scenarios-situations where people would need certain things
- reach out to adopters to buy products
- market research
- creating an innovative environment
- cater to entrepreneurship-encourage it within the company
Political and legal factors
- Gov. depend on buisnesses for taxpayer money
- Buisnesses depend on goverment for tech. protection
- Regulation agencies protect consumer interests
Consumer privacy
CAN-spam act-prevents buisnesses form sending falsifiable emails
Children’s online privacy protection act- all websites must post privacy policies on their sites
