Chapter 5: Environment Analysis Framework

Which are traits that best describe Baby Boomers? (Select all that apply.)

-Born between 1946 and 1964 -Largest population of consumers 50 or older

What are some characteristics of Generation X? (Select all that apply.)

-Considered latchkey children -Born between 1965 and 1976 -Represent 41 million Americans

Why are marketers embracing gender neutrality? (Select all that apply.)

-Customers cannot be pigeonholed according to gender. -Gender roles are no longer as distinct as they once were.

What tasks are firms increasingly using artificial intelligence (AI) to complete? (Select all that apply.)

-Decision making -Translations -Speech recognition

What services do many firms already use robots to provide? (Select all that apply.)

-Filling Orders -Counting Cash

Which demographic factors can help predict consumer buying patterns? (Select all that apply.)

-Income earned -Education attained

Immediate Environment: Competitors

Competitors also significantly affects consumers in the immediate environment. It is therefore critical that marketers understand their firm's competitors, including their strengths, weaknesses, and likely reactions to the marketing activities that their own firm undertakes.

Data that indicate the characteristics of human populations and segments is known as ______.

Demographics

True or false: Customers generally prefer talking to a salesperson when they need information over searching on the Internet.

False

Immediate Environment: Corporate Partners

Few firms operate in isolation. For example, automobile manufacturers collaborate with suppliers of sheet metal, tire manufacturers, component part makers, unions, transport companies, and dealerships to produce and market their automobiles successfully. Parties that work with the focal firm are its corporate partners.

Which is the largest generational cohort since the Baby Boomers?

Gen Y

Which income group's purchasing power is growing relative to other income groups?

Highest-income group

Which industry is most likely to suffer a downturn when interest rates rise?

Housing Market

Factors that influence and affect consumers include a company's capabilities, competitors, and partners, and are referred to as the ______.

Immediate Environment

Which factor should marketers keep in mind about gender when promoting goods and services?

Marketers sell more products if they strive to transcend gender boundaries whenever possible.

Which firm would be the most likely to see food sales suffer as a result of inflation and rising costs and consumers wanting to save money?

Morton's Steakhouse: As an expensive chain of steak restaurants, Morton's is upscale in comparison to eating at Burger King or Kentucky Fried Chicken and would suffer the most from an economic downturn.

When developing marketing plans, what should a firm consider about their competition?

Their Reaction

Marketers can use analyses of their external environment, like the SWOT analysis described, to categorize any opportunity as attractive or unattractive. If it appears attractive, they also need to assess it in terms of their existing competencies.

True

Generational Cohort

a group of people of the same generation, have similar purchase behaviors because they have shared experiences and are in the same stage of life

Regional Culture

affects many aspects of people's lives, including their dietary tastes and preferences

Baby Boomers

after World War II, the birthrate in the United States rose sharply, the 78 million American born.

Retailers are committed to food deserts

areas and neighborhoods in which consumers, usually of lower socioeconomic strata, have limited or no access to healthy, affordable, fresh food options

Economic Situation

both in their home country and abroad, because it affects the way consumers buy merchandise and spend money

Foreign Currency Fluctuations

changes in the value of a county's currency relative to the currency of another country; can influence consumer spending

Political/Legal Environment

comprises political parties, government organizations, and legislation and laws.

Understanding the Marketing Environment: The Centerpiece

consumers may be influenced directly by the immediate actions of the focal company, the company's competitors, the corporate partners that work with the firm to make and supply products and services to consumers, and the physical environment.

CDSTEP

culture, demographics, social, technology, economic, political/legal

At the center of all analyses of the marketing environment is the _______ and his or her specific behavior and attitudes.

customer or consumer

A(n) food _________ deserts , Correct Unavailable refers to an area or neighborhood where there is limited to no access to healthy, affordable, fresh food options.

deserts

A company must be able to focus on its ______ competencies as an opportunity to deliver new products to its customers.

existing

Green Washing

exploiting consumers by disingenuously marketing products or services as environmentally friendly, with the goal of public approval and sales.

Within the macroenvironment and related to elements of the competitive industry in which the firm operates is the ______ environment.

immediate

Generation Y (Millenials)

include more than 60 million people born in the United States between 1977-2000. Biggest of the cohort since the original post- World War II boom. Ranging from teenagers to adults who have their own families.

Generation X

includes people born 1965-1976 and represents 41 million Americans. Are the first generation of latchkey children, and 50% of them have divorced parents

Walmart has installed Cash360 machines in nearly all its stores. The machines count cash drawers more quickly than human workers could and make immediate deposits, __________, Incorrect Unavailable the efficiency of the stores' accounting operations.

increasing or rising

Demographics

indicate the characteristics of human populations and segments, especially those used to identify consumer markets such as age, gender, race, and income.

Macro-Environmental Factors

marketers must understand aspects of the external environment that affect a company's business, such as the culture, demographics, social trends, technological advances, economic situation, and political/legal environment or CDSTEP.

Digital Native

members of Generation Z, people in this group were born into a world that already was full of electronic gadgets and digital technologies such as the internet and social networks

What is the average yearly income for young adults with a bachelor's degree in the United States?

$50,000

What are components of culture?

-Beliefs -Customs of a group of people -Morals

What are possible reasons for the increase in wealthy families? (Select all that apply.)

-Increase in dual-income households -Aging of the general population

Which of the following are considered aspects of the physical environment? (Select all that apply.)

-Living organisms -Land -Water

What are current trends in food marketing? (Select all that apply.)

-Opening grocery stores in food deserts -Reducing food waste

What must marketers understand about their competition? (Select all that apply.)

-Their weaknesses -Their likely response to marketing activities -Their strengths

Which items could be included in the Internet of Things? (Select all that apply.)

-Washers and dryers -Refrigerators -Coffee machines

Immediate Environment: Physical Environment

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. Concerns ab

Inflation

refers to the persistent increase in the prices of goods and services. Increasing prices cause the purchasing power of the dollar to decline; in other words the dollar buys less than it used to.

Interest Rates

represents the cost of borrowing money when customers borrow money from a bank, they agree to pay back the loan, plus the interest rates that accrues

Country Culture

similar to culture in general, but at a country level. Entails easy to spot visible nuances that are particular to a country, such as dress, symbols, ceremonies, language, colors, and food preferences, and subtler aspects.

Artificial Intelligence

solutions that rely on computer systems to perform tasks that require human intelligence, such as a speech recognition, decision making, or translations

Green Marketing

strategic efforts, firms work to supply customers with environmentally friendly, sustainable merchandise and services.

Understanding the Immediate Environment: Consumers' Immediate Environment

the company's capabilities, competitors, corporate partners and physical environment

Understanding the Marketing Environment: The Firm

the firm, and therefore consumers indirectly, is influenced by the macro environment, which includes the various impacts of culture; demographics; and social, technological, economic, and political/legal factors.

Culture

the shared meanings, beliefs, morals, values, and customs of a group of people

17 Global Goals of Sustainable Development

these goals seek to preserve the physical environment and protect the planet

The Internet of ___________occurs when there are numerous "smart devices" that work together to help both consumers and companies consume more efficiently

things (IoT)

Internet of Things (IoT)

when multiple "smart devices" with internet connected sensors, such as refrigerators, dishwashers, and coffeemakers, combine the data they have collected to help both consumer and companies consume more efficiently.