MARK1012 Chapter Notes - Chapter 4: Baby Boomers, Swot Analysis, Generation Z
CHAPTER 4 Marketing Environment
Saturday, 20 May 2017
18:57
1. The factors that affect marketing environment:
Centerpiece: consumer
Because the consumer is the center of all marketing efforts, value-based marketing aims to
provide greater value to consumers than competitors offer. Consumers' needs and wants as
well as their ability to purchase, depend on a host of factors that change and evolve over time.
Everything a firm does therefore should revolve around the customers
Immediate environment: company, corporate partners, competition
Macroenvironment: culture, demographics, social, technology, economic political/ legal
2. Immediate environment
Company: successful marketing firms focus on satisfying customers needs and wants that
match their core competencies. Marketers can use an analysis of the external environment
such as SWOT analysis to categorise an opportunity as either attractive or unattractive
Competitors: it is critical that marketers understand their firm's competitors, including their
strengths, weaknesses, and likely reactions to the marketing activities that their own firm
undertakes. It is important to know what a competitor is doing and is going to do, and
illustrates attempts to halt tactics that can be considered damaging. Furthermore, a firm
needs to tout their competitive advantage over a competitor's
Corporate partners: it is always best to have partners to work with to increase efficiency and
effectiveness of operations
3. Macroenvironmental factors (external factors)
A. Culture: shared meanings, beliefs, morals, values, and customs of a group of people. The
challenge for marketers is to have products identifiable by and relevant to a particular group
of people. Types: country culture and regional culture. In executing a regional marketing, the
marketing must be spot on.
B. Demographics: age, generation cohort, income ( big gap in income equality presents an
opportunity of targeting both the higher end and the lower end of the income distribution),
education, gender, ethnicity
Generation cohort:
o Generation Z ( born in 2001-..) or digital natives: more globally connected, have better
appreciation for diverse culture, born into a world confronted by terrorism
o Generation Y (born in 1977-2000) or millennials: vary a lot in age, the younger ones of
the group referred as 'tweens', technologically savvy, share behaviors and interest
across previously impassable borders, place an importance between life and work
o Generation X (born in 1965-1976): helicopter parents, astute consumers, more
knowledgeable about products and most risk averse among all generation cohorts'
o Baby boomers (born before 1976; around 60 years old) : implications for marketing,
business, public policy and society in general are significant, individualistic, leisure is a
high priority, careless in spending money, belief that they can take care of themselves,
have an obsession of maintaining their youth. Love rock 'n' roll, have more disposable
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Document Summary
18:57: the factors that affect marketing environment: Because the consumer is the center of all marketing efforts, value-based marketing aims to provide greater value to consumers than competitors offer. Consumers" needs and wants as well as their ability to purchase, depend on a host of factors that change and evolve over time. Everything a firm does therefore should revolve around the customers. Macroenvironment: culture, demographics, social, technology, economic political/ legal. Company: successful marketing firms focus on satisfying customers needs and wants that match their core competencies. Marketers can use an analysis of the external environment such as swot analysis to categorise an opportunity as either attractive or unattractive. Competitors: it is critical that marketers understand their firm"s competitors, including their strengths, weaknesses, and likely reactions to the marketing activities that their own firm undertakes. It is important to know what a competitor is doing and is going to do, and illustrates attempts to halt tactics that can be considered damaging.
