Marketing Question

Description

Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.Students must mention question number clearly in their answer.Late submission will NOT be accepted.Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions. All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism). Submissions without this cover page will NOT be acceptedAvoid Plagiarism Support your answers with course material concepts, principles, and theories from the textbook and scholarly, peer-reviewed journal articles etc. Use APA style for writing the references.

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‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬
Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University
Department of Business Administration
College of Administrative and Financial Sciences
Assignment 1
Marketing Management (MGT 201)
Due Date: 9th March 2024 @ 23:59
Course Name: Marketing Management
Student’s Name:
Course Code: MGT201
Student’s ID Number:
Semester: 2nd
CRN:
Academic Year:
For Instructor’s Use only
Instructor’s Name:
Students’ Grade: Marks Obtained/Out of 10
2023-24
Level of Marks: High/Middle/Low
General Instructions – PLEASE READ THEM CAREFULLY
•
•
•
•
•
•
•
•
The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented, marks may be reduced for
poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other
resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No
pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.
Learning Outcomes:
1.
2.
3.
Recognize an understanding of the overall marketing concepts, goals and strategies within the context of
organizations goals and strategies. (CLO-1)
Demonstrate the ability to formulate marketing strategies that incorporate psychological and sociological
factors which influence consumer’s decision.. (CLO-3)
Use effective and collaborative interpersonal skills to carry out scientific analysis of consumers’ needs and
wants to formulate a marketing Plan. (CLO-5)
Critical Thinking
Max Marks-10
Reading required: – Read Chapter 1, 2, and 5 carefully and then answer the following
questions based on your understanding.
1. Based on the discussion made in Chapter-1 regarding the value creation concept, explain
how a SR100 Timex watch and a SR20000 Rolex watch deliver value to their respective
target markets? Which factors account for this dramatic difference in watch prices?
Critically examine and provide your answer.
Chapter-1 (4 Marks) (Minimum 200 words)
2. Lexus brand is owned by the Toyota Motor Corporation. In many ways Lexus the luxury
vehicle brand, operates independently from the Toyota Motor Corporation. Visit their
websites (Lexus https://www.lexus.com.sa , Toyota https://www.toyota.com.sa) and
identify what markets each brand targets and how the two companies use the marketing
mix (4P’s) differently to target their unique target markets?
Chapter-2 (3 Marks) (Minimum 150 words)
3. Being a student of marketing management, critically examine how the technological
advances such as artificial intelligence is influencing marketers in the current scenario?
Critically examine and provide your answer with suitable examples.
Chapter-5 (3 Marks) (Minimum 150 words)
Important Notes: •
•
•
Avoid Plagiarism
Support your answers with course material concepts, principles, and theories from the
textbook and scholarly, peer-reviewed journal articles etc.
Use APA style for writing the references.
Answers
1.
2.
3.
Because learning changes everything. ®
Chapter 1
Overview of Marketing
Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
Learning Objectives
Learning Objective 1.1 Define the role of
marketing.
Learning Objective 1.2 Describe the evolution of
marketing over time.
Learning Objective 1.3 Describe how marketers
create value for a product or service.
© McGraw Hill LLC
3
Water Bottles
© McGraw Hill LLC
CD_works27/Shutterstock
4
What Is Marketing?
Marketing is the activity, set of institutions, and processes
for creating, capturing, communicating, delivering, and
exchanging offerings that have value for customers, clients,
partners, and society at large.
© McGraw Hill LLC
Alejandro Rivera/Getty Images
5
Exhibit 1.1 Core Aspects of Marketing
Access the text alternative for slide images.
© McGraw Hill LLC
6
Marketing Is about Satisfying Customer
Needs and Wants
How does Dove offer value?
• Dove added the Dove
Men+Care line and expanded
into products for babies.
• In advertising to male
consumers, Dove seeks to
acknowledge and recognize
modern men’s caregiving roles,
so it can link these
communications to its baby care
products too.
• Dove seeks to acknowledge
and recognize modern men’s
caregiving roles, so it can link
these communications to its
baby care products.
© McGraw Hill LLC
Dove seeks to acknowledge and recognize
modern men’s caregiving roles, so it can link
these communications to its baby care
products.
Source: Unilever
7
Exhibit 1.2: Exchange: The Underpinning of
Seller-Buyer Relationships
© McGraw Hill LLC
8
Exhibit 1.3: The Marketing Mix
© McGraw Hill LLC
Source: McGraw-Hill Global Education Holdings, LLC
9
Marketing Creates Value through Product,
Price, Place, and Promotion Decisions
The Marketing Mix:
The controllable set
of decisions or
activities that the firm
uses to respond to
the wants of its target
markets.
© McGraw Hill LLC
• Product.
• Price.
• Promotion.
• Place.
10
Product: Creating Value
The fundamental purpose of
marketing is to create value
by developing a variety of
offerings, including goods,
services, and ideas, to
satisfy customer needs.
• Goods.
• Services.
• Ideas.
Marketing creates value by promoting
ideas, such as bicycle safety.
© McGraw Hill LLC
Source: Street Smart, a public safety campaign of Metro, the District of Columbia, Maryland, and Virginia.
11
Price: Capturing Value
Price is everything a
buyer gives up (money,
time, energy) in
exchange for the
product or service.
If you don’t mind sitting in a middle seat and
putting all your baggage under your seat, flying on
low-cost carriers like Frontier is a good value.
© McGraw Hill LLC
Kateryna Kukota/Alamy Stock Photo
12
Place: Delivering the Value Proposition
Place represents all the
marketing processes
necessary to get the product to
the right customer when that
customer wants it.
Place more commonly deals
specifically with retailing and
marketing channel
management, also known as
supply chain management.
Hertz creates customer value by using biometrics to
create a function that recognizes loyal customers
using facial, iris, or fingerprint scans.
© McGraw Hill LLC
Jeff Martin/AP Images
13
Promotion: Communicating the Value
Proposition
Promotion is
communication by a
marketer that informs,
persuades, and reminds
potential buyers about a
product or service to
influence their buying
decisions and elicit a
response.
Babar books wanted to celebrate the 80th anniversary of the series.
It initiated a $100,000 campaign, working in collaboration with toy
stores and bookstores.
© McGraw Hill LLC
BananaStock/Alamy Images
14
Exhibit 1.4: Marketing Can Be Performed by
Individuals and by Organizations
© McGraw Hill LLC
15
Marketing Impacts Various Stakeholders
Customers.
Supply Chain Partners.
Employees.
Industry.
Society.
The Great American Milk Drive, run in conjunction with
Feeding America, seeks to ensure that local food banks are
sufficiently stocked with nutritious, frequently requested items.
© McGraw Hill LLC
Source: America’s Milk Companies
16
PROGRESS CHECK (1 of 3)
1. What is the definition of marketing?
2. Marketing is about satisfying
blank.
blank and
3. What are the four components of the marketing
mix?
4. Who can perform marketing?
© McGraw Hill LLC
17
Exhibit 1.5 Marketing Evolution:
Production, Sales, Marketing and Value
Photos (left to right): Ryan McVay/Photodisc/Getty Images; Clement Mok/Photodisc/Getty Images; Lawrence Manning/Corbis/Getty Images; Ryan McVay/Photodisc/Getty Images;
Mark Dierker/McGraw-Hill
Access the text alternative for slide images.
© McGraw Hill LLC
18
Value-Based Marketing
A Lipstick Option for Those Who Dream of a
Hermès Bag
© McGraw Hill LLC
© Justin Sullivan/Getty Images
19
Value-Based Marketing Era
© McGraw Hill LLC
20
PROGRESS CHECK (2 of 3)
1. What are the various eras of marketing?
© McGraw Hill LLC
21
How Does Marketing Create Value and
How Do Firms Become More Value Driven?
Build relationships with customers.
Gather and analyze information.
Balance benefits and costs.
Connect with customers using social and
mobile media.
Access the text alternative for slide images.
© McGraw Hill LLC
22
Value Stems From Four Main Activities
Adding Value
Using Marketing Analytics
Embracing Social and Mobile Marketing
Ethical and Societal Dilemma: Engaging in
Conscious Marketing
Access the text alternative for slide images.
© McGraw Hill LLC
23
Marketing Analytics
Companies collect massive amounts of data about
how, when, why, where, and what people buy.
Kroger collects massive amounts of data about how, when, why, where, and what people buy and
then analyzes those data to better serve its customers.
© McGraw Hill LLC
© Daniel Acker/Bloomberg/Getty Images
24
Connecting With Customers Using Social
and Mobile Marketing
Social media ad
spending is growing,
increasing by 32 percent
in 2018 alone.
3.26 billion people link
to some social media
sites through their
mobile devices.
Make travel arrangements online either
through Facebook or hotels’ mobile app and
check-in is a breeze.
© McGraw Hill LLC
Erik Isakson/Blend Images/Getty Images
25
Resolving Ethical and Societal Dilemmas
Conscious Marketing
Socially Responsible
Firms
Making socially
responsible activities an
integral component of
corporate strategies.
Too Good To Go is a UK-based app that has
partnered with 1,381 food stores to match
hungry customers to restaurants and stores
with surplus food that would otherwise go to
waste.
© McGraw Hill LLC
Guillaume Payen/SOPA Images/LightRocket/Getty Images
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PROGRESS CHECK (3 of 3)
1. Does providing a good value mean selling at a
low price?
2. How are marketers connecting with customers
through social and mobile media?
© McGraw Hill LLC
27
Because learning changes everything.
®
www.mheducation.com
Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
Because learning changes everything. ®
Chapter 2
Developing Marketing
Strategies and a Marketing
Plan
Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
Learning Objectives
Learning Objective 2.1 Define a marketing strategy.
Learning Objective 2.2 Describe the elements of a marketing plan.
Learning Objective 2.3 Analyze a marketing situation using SWOT
analyses.
Learning Objective 2.4 Describe how a firm chooses which consumer
group(s) to pursue with its marketing efforts.
Learning Objective 2.5 Outline the implementation of the marketing
mix as a means to increase customer value.
Learning Objective 2.6 Summarize portfolio analysis and its use to
evaluate marketing performance.
Learning Objective 2.7 Describe how firms grow their business.
© McGraw Hill LLC
3
PepsiCo
The development at PepsiCo reflects careful
analysis of the market and efforts to ensure that it
continues to attract a wide range of consumers.
© McGraw Hill LLC
VStock / Alamy, Shutterstock/VDB Photos
4
What is a Marketing Strategy?
A marketing strategy
identifies:
• A firm’s target market.
• A related marketing
mix.
• The bases on which
the firm plans to build
a sustainable
competitive
advantage.
© McGraw Hill LLC
Shutterstock / SergZSV.ZP
5
Exhibit 2.1: Macro Strategies for Developing
Customer Value
Access the text alternative for slide images.
© McGraw Hill LLC
6
Customer Excellence
Retaining loyal
customers.
Providing outstanding
customer service.
Disney’s My Magic system enables users to
swipe their MagicBand wristbands to get on
rides, make purchases, and open their hotel
room door
© McGraw Hill LLC
parrysuwanitch/123RF
7
Operational Excellence
Efficient
operations
Excellent
supply chain
management
Strong
relationship
with
suppliers
© McGraw Hill LLC
8
Product Excellence
Provide products with high
perceived value and
effective branding and
positioning.
Bloomberg Businessweek’s
top global brands:
• Apple, Google,
Microsoft, Coca-Cola,
Amazon, Samsung,
Toyota, Facebook,
Mercedes, IBM.
© McGraw Hill LLC
© Jacek Lasa / Alamy
9
Locational Excellence
Especially important for retailers and service providers.
Many say, “The three most important things in retailing are
location, location, location.”
Competitive advantage based on location is not easily
duplicated. Starbucks makes it difficult for competitors to
enter a market and find good locations.
© McGraw Hill LLC
10
Multiple Sources of Advantage
A single strategy (low
prices or excellent service)
is usually not enough to
build a sustainable
competitive advantage.
Southwest Airlines
• Provides good service
at a good value (ontime flights that are
reasonably priced).
© McGraw Hill LLC
Carlos E. Santa Maria/Shutterstock
11
PROGRESS CHECK (1 of 3)
1. What are the various components of a marketing
strategy?
2. List the four macro strategies that can help a
firm develop a sustainable competitive
advantage.
© McGraw Hill LLC
12
Exhibit 2.2: The Marketing Plan
Access the text alternative for slide images.
© McGraw Hill LLC
13
Step 1: Define the Business Mission
PepsiCo’s Mission Statement:
“To provide consumers around the world with delicious,
affordable, convenient and complementary foods and
beverages from wholesome breakfasts to healthy and
fun daytime snacks and beverages to evening treats.”
Coke’s Mission Statement:
“To refresh the world … To inspire moments of optimism
and happiness … To create value and make a
difference.”
© McGraw Hill LLC
14
Step 2: Conduct a Situation Analysis Using
SWOT Analysis
© McGraw Hill LLC
Internal
Strengths
Internal
Weaknesses
External
Opportunities
External
Threats
15
Exhibit 2.3: Examples of Elements in a SWOT
Analysis (1 of 2)
Pepsi
Environment
Evaluation
Positive
Negative
Internal
Strengths
• Diverse brand portfolio
• Strong celebrity endorsers
• Successful marketing
campaigns with music
industry
• Commitment to social and
environmental charitable
causes
Weaknesses
• Lower brand awareness than
rival Coca-Cola
• Less market share than rival
Coca-Cola
• Environmentally unfriendly
packaging
External
Opportunities
• Expanding health food market
• Growth in global market share
• Acquisition of new brands
Threats
• Water scarcity
• Popularity of reusable water
bottles
• Soda taxes
• Increasing competition in the
snack food market
Sources: Bitesh Bhasin, “SWOT Analysis of Pepsi—PepsiCo SWOT Analysis,” Marketing91, April 3, 2019; Hitesh Bhasin, “SWOT of Coca-Cola,” Marketing91, 2018.
© McGraw Hill LLC
16
Exhibit 2.3: Examples of Elements in a SWOT
Analysis (2 of 2)
CocaCola
Environment
Evaluation
Positive
Negative
Internal
Strengths
• High market share
• Strong brand
• Strong global presence
• Excellent customer loyalty
• Supply chain
Weaknesses
• Low diversification
• Few healthy beverages
External
Opportunities
• Emerging countries
• Diversifying products
• Bottled water
Threats
• Water scarcity
• Potential market
saturation
• Changes to labeling
regulations
• Increasing competitors
Sources: Bitesh Bhasin, “SWOT Analysis of Pepsi—PepsiCo SWOT Analysis,” Marketing91, April 3, 2019; Hitesh Bhasin, “SWOT of Coca-Cola,” Marketing91, 2018.
© McGraw Hill LLC
17
Step 3: Identifying and Evaluating
Opportunities Using STP
Segmentation
Targeting
Positioning
© McGraw Hill LLC
18
Exhibit 2.4: Hertz: Market Segmentation
Illustration
Segments
Cars
Offered
© McGraw Hill LLC
Segment 1
Segment 2
Segment 3
Segment 4
Segment 5
Single thrill
seekers and
gear heads on
vacation
Business
customers
and families
who prefer a
luxurious ride
Environmental
ly conscious
customers
Families
Commercial
customers
Adrenaline
Collection
Prestige
Collection
Green
Traveler
Collection
SUV/Mini
van/4×4
Collection
Commercial
Van/Truck
Collection
Corvette ZHZ
Infiniti QX56
Toyota Prius
Toyota RAV4
Ford Cargo
Van
Chevrolet
Camaro
Cadillac
Escalade
Ford Fusion
Ford Explorer
19
Market Positioning
Choose which segments to
pursue, then how to position
within those segments.
Define the marketing mix
variables so target customers
have a clear, distinctive, and
desirable understanding of the
product compared to competition.
Hertz positions itself as a quality
car and truck rental company that
is the first choice for each target
segment.
© McGraw Hill LLC
Shutterstock/MuchMania
20
Step 4: Implement Marketing Mix and Allocate
Resources
© McGraw Hill LLC
Product and Value
Creation
Price and Value
Capture
Place and Value
Delivery
Promotion and
Value
Communication
21
Product and Value Creation
Successful products and services are those that
customers perceive as valuable enough to purchase.
Dyson creates value with its innovative products (left). It can therefore charge significantly more than
the price charged for conventional fans (right).
Access the text alternative for slide images.
© McGraw Hill LLC
(Left): Source: Dyson, Inc.; (right): Stockbyte/Getty Images
22
Price and Value Capture
Price is what the customer is willing to pay for
a product they perceive as good value.
© McGraw Hill LLC
Shutterstock / RUBEN M RAMOS
23
Place and Value Delivery
The product must be
readily accessible
when and where the
customer wants it.
• Dyson provides
product and place
value.
• Where are Dyson
fans available?
© McGraw Hill LLC
Top: Shutterstock/TotallyMJ , Bottom: Shutterstock/Maxx-Studio
24
Promotion and Value Communication
Advertising
Online
marketing
(including
social
media)
Personal
selling
Integrated
marketing
communications
(IMC)
Direct
marketing
Sales
promotion
Public
relations
Access the text alternative for slide images.
© McGraw Hill LLC
25
Step 5: Evaluate Performance Using
Marketing Metrics
A metric is a measuring
system that quantifies a
trend, dynamic, or
characteristic.
Metrics are used to
explain why things
happened and also
project the future.
© McGraw Hill LLC
Shutterstock / NicoElNino
26
Evaluating Performance
Who is accountable for
performance?
EXHIBIT 2.5 Performance Metrics: Coke vs. Pepsi
•
Performance
Objectives, Marketing
Analytics, and Metrics.
•
Financial Performance
Metrics.
•
Portfolio Analysis.
Access the text alternative for slide images.
© McGraw Hill LLC
Source: MarketWatch, Inc.
27
Exhibit 2.6 Boston Consulting Group Matrix
Photos (top left): DenPhotos/Shutterstock; (top right): Kicking Studio/Shutterstock; (bottom left): Sushiman/Shutterstock;
(bottom right): David Caudery/Tap Magazine/Getty Images
Access the text alternative for slide images.
© McGraw Hill LLC
P&G
Website
28
Which Quadrant?
Whether a product is
classified as a star or
a question mark has
profound implications
on how it is treated
and supported within
the firm.
© McGraw Hill LLC
Top: Ksander/Shutterstock; Bottom: Denis Rozhnovsky / Alamy Stock Photo
29
PROGRESS CHECK (2 of 3)
1. What are the five steps in creating a marketing
plan?
2. What tool helps a marketer conduct a situation
analysis?
3. What is STP?
4. What do the four quadrants of the portfolio
analysis represent?
© McGraw Hill LLC
30
Growth Strategies
Exhibit 2.7: Markets/Products and Service Strategies
Access the text alternative for slide images.
© McGraw Hill LLC
31
Market Penetration
Current marketing mix,
Current customers
Marvel used a market
penetration strategy by
expanding the distribution of
its films:
• Theaters.
• Xfinity.
• DVDs (in a variety of retail
locations).
© McGraw Hill LLC
Shutterstock/Nestor Rizhniak
32
Market Development
Current Products or
Services.
New Markets.
Marvel pursues such a
market development
strategy when it enhances
the viewing of its movies by
expanding into more global
markets.
© McGraw Hill LLC
Klaus Vedfelt/Getty Images
33
Product Development
New product or service.
Current target market.
Marvel launched several
successful series on Netflix,
including Jessica
Jones, Daredevil, Iron
Fist, and Luke Cage.
• By developing series designed
for this format, Marvel can
connect with its customers in a
new and important way.
© McGraw Hill LLC
Left: Dragon Images/Shutterstock, Right: Makistock/Shutterstock
34
Diversification
New product or service.
New market segment.
Related vs. unrelated
diversification.
•
Marvel has pursued related
diversification with its home décor.
•
If Marvel ventured into the child
day care service industry, it would
be an unrelated diversification
because it is so different from its
core business and therefore very
risky.
© McGraw Hill LLC
Photos (top): Interior Design/Shutterstock; (bottom): Ariel Skelley/Photodisc/Getty Images
35
PROGRESS CHECK (3 of 3)
1. What are the four growth strategies?
2. What type of strategy is growing the business
from existing customers?
3. Which strategy is the riskiest?
© McGraw Hill LLC
36
Because learning changes everything.
®
www.mheducation.com
Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
Because learning changes everything. ®
Chapter 5
Analyzing the Marketing
Environment
Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
Learning Objectives
Learning Objective 5.1 Outline how customers, the
company, competitors, corporate partners, and the
physical environment affect marketing strategy.
Learning Objective 5.2 Explain why marketers must
consider their macroenvironment when they make
decisions.
Learning Objective 5.3 Identify various social trends that
impact marketing.
Learning Objective 5.4 Examine the technological
advances that are influencing marketers.
© McGraw Hill LLC
3
Exhibit 5.2: Understanding the Marketing
Environment
Access the text alternative for slide images.
© McGraw Hill LLC
4
Exhibit 5.2: The Immediate Environment
© McGraw Hill LLC
5
Company Capabilities
Successful marketing
firms focus on
satisfying customer
needs that match their
core competencies.
Corning initially made its name by producing the glass enclosure to encase
Thomas Edison’s lightbulb. But by successfully leveraging its core
competency in glass manufacturing while also recognizing marketplace
trends toward mobile devices, Corning shifted its focus.
© McGraw Hill LLC
Somchai Som/Shutterstock
6
Competitors
Know their strengths,
weaknesses, and likely
reactions to firm’s
marketing activities.
© McGraw Hill LLC
10’000 Hours/Getty Images
7
Corporate Partners
Parties that work
with the focal firm.
Nau works with
manufacturers to
develop clothing
from sustainable
materials.
Nau works with its corporate partners to develop socially
responsible outdoor (left) and urban (right) apparel.
© McGraw Hill LLC
(Left): Philipp Nemenz/Getty Images; (right): PeopleImages/Getty Images
8
Physical Environment
Sustainable development:
Includes land, water, air, and
living organisms.
Products and services are
influenced by how they are
used in the physical
environment, and in turn they
can also influence the physical
environment.
Examples:
• Energy Trends.
• Greener Practices and
Green Marketing.
• Greenwashing.
© McGraw Hill LLC
Caia Image / Image Source
9
17 Global Goals of Sustainable Development
EXHIBIT 5.3 Global Goals of Sustainable Development
From the United Nations, “Sustainable Development Goals: 17 Goals to Transform Our World,” Last Modified March 18, 2019. The content of this
publication has not been approved by the United Nations and does not reflect the views of the United Nations or its officials or Member States.
https://www.un.org/sustainabledevelopment/news/communications-material/.
Access the text alternative for slide images.
© McGraw Hill LLC
10
PROGRESS CHECK (1 of 2)
1. What are the components of the immediate
environment?
© McGraw Hill LLC
11
Macroenvironmental Factors
EXHIBIT 5.4 The Macroenvironment
© McGraw Hill LLC
12
Culture
Shared meanings, beliefs, morals, values, and customs of a group of
people transmitted by words, literature, and institutions.
Country Culture
• Subtler aspects can be difficult to navigate.
• Sometimes best answer is to establish universal appeal within specific
identities of country culture.
Regional Culture
• For national and global chains, particularly important to cater to
regional preferences.
• McDonald’s – slightly different variations of staple menu.
© McGraw Hill LLC
13
Demographics
Characteristics of the human
population and segments,
especially those used to
identify consumer markets.
Provides an easily
understood snapshot of the
typical consumer in a specific
target market.
Marketers use data about
consumers to target offers.
census.gov
© McGraw Hill LLC
Shutterstock / astel design
14
Exhibit 5.5: Generation Cohort
Generational
cohort
Gen α
Gen Z
Gen Y
Gen X
Baby
Boomers
Range of birth years
2010–
2025
1997–
2009
1981–
1996
1965–
1980
1946–
1964
Age in 2020
0–10
11–23
24–39
40–55
56–74
Millennials and the Rise of the ‘Experience Economy’
Access the text alternative for slide images.
© McGraw Hill LLC
15
Income
Purchasing power is tied
to income.
Marketing opportunities
exist across the broad
range of income
distribution.
SC Johnson targets the bottom of the
income pyramid by selling pest control
products in Ghana.
© McGraw Hill LLC
NNehring/iStock/Getty Images
16
Education
Education is related to income, which determines
spending power.
© McGraw Hill LLC
Monkey Business Images/Shutterstock
17
Gender
Male/female roles have
been shifting.
Marketing has changed
to reflect these shifts.
• Firms may need to be
careful about gender
neutrality in
positioning their
products.
© McGraw Hill LLC
Gorodenkoff/Shutterstock
18
Ethnicity
Approximately 80% of
all population growth in
the next 20 years is
expected to come from
minority communities
By 2030 the Hispanic
population in the U.S. is
expected to reach more
than 72 million.
© McGraw Hill LLC
Image Source/Getty Images
19
Social Trends
Sustainability
Health and Wellness
Efficient Utilization and
Distribution of Food
© McGraw Hill LLC
20
Sustainability
UN Sustainable
Development Goals
focus on social issues
for basic needs.
Certifications from
various agencies may
be important.
© McGraw Hill LLC
pixelliebe/Shutterstock
21
Health and Wellness
Child and adult obesity
New markets focused
on healthy living
Mobile apps that
support health and
wellness
© McGraw Hill LLC
Shutterstock/Rawpixel.com
22
Efficient Utilization and Distribution of Food
Diet-related Products
Reducing Hunger
Reducing Food Waste
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Technological Advances
Technology impacts every aspect of marketing:
• New products and services.
• New forms of communication.
• New retail channels.
Growing importance of mobile devices
New cutting-edge technology:
• Artificial Intelligence.
• Robotics.
• Internet of Things (IoT).
• Privacy Concerns.
Pepper the robot is used in restaurants, hotels, and coffee shops.
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Economic Situation
Affects the way consumers buy products and services and
spend money.
Monitor the economic situation in home country and abroad.
Major factors to monitor:
• Inflation.
• Foreign currency fluctuations.
• Interest rates.
Customers formed in line to bank counter
Consumer Confidence Index
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25
Political/Legal Environment
Comprises political parties,
government organizations,
and legislation and laws.
Firms must understand and
comply with
legislation regarding:
• Fair competition.
• Consumer protection.
• Industry-specific regulation.
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Responding to the Environment
Implement strategies
that respond to multiple
environmental forces.
Marketers that succeed
are the ones that
respond quickly,
accurately, and
sensitively to
consumers.
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PROGRESS CHECK (2 of 2)
1. What are the six key macroeconomic factors?
2. Differentiate between country culture and
regional culture.
3. What are some important social trends shaping
consumer values and shopping behavior?
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