Marketing 301 Chapter 3 pg; 118

b. electronic commerce

(e-commerce), or the activities that use electronic communication in the inventory, promotion, distribution, purchase, and exchange of products and services. Internet-based technology: also allows companies to create intranets to communicate within the organization and extranets: to communicate with suppliers, distributors, and other partners such as advertising agencies

Currently what is the population of Metropolitan Divisions and Micropolitan?

1. 392 Metropolitan statistical areas which include 86% of the population 2. 546 micropolitan statistical areas, which include 8.5 % of the population.

Generation X (1965-1980)

1. 55. million 2. Knows as the period baby bust because during this time the number of children born each year was declining. 3. consumers are self reliant, supportive of racial and ethic diversity, better educated 4. not prone to extravagance 5. tend to pursue lifestyles pragmatism and traditionalism 6. have less than previous generations. 7. Travel more 8. In on the internet more online spending

4. COMPETITIVE FORCES pg 135

1. Alternative Forms of Competition 2. Components of Competition 3. Small Businesses as Competitors

1. The Changing Attitudes and Roles of Men and Women

1. As a result, today's Generation Y represents the first generation of women who have no collective memory of the dramatic changes we have undergone.

3. Generational Cohorts pg 123

1. Baby boomers 2. Generation X 3. Generation Y 4. Generation Z

What are the components of competition:

1. Entry 2. Power of Buyers and suppliers 3. Existing competitors and substitutes 4.

What does Developing Multicultural do?

1. Marketing research that allows to an accurate understanding of each culture 2. cultural preferences 3. geographic concentrations allowing companies to combine their multicultural marketing.

U.S trends:

1. Population is becoming larger, older and more diverse. 2. current population 328 million 3. If current trend continues by 2030 and 2050 the U.S population will exceed 355 and 389 million. 4. the older niche market will become increasingly important. 5. Today there are more than 49 million people 65 an older. 6. By 2050 there will be 85 million old people 22% of population.

Discuss the forms of competition that exist in a market and the key components of competition.

1. Pure competition 2. monopolistic competition 3. Oligopoly 3. pure monopoly

Several factors have contributed to the shift in attitudes

1. Several women of generation Y had mothers who had careers and provided lifestyle choices. 2. Increased participation in women in sports 3. Internet has provided exposure to the marketplace through a mechanism that makes gender, race, and ethnicity invisible 4. Companies are now preparing for both genders. 5. Companies are moving away from gender base signage. 6. Gender neutral advertising is becoming for common.

environmental forces that influence Facebook:

1. Social Forces: created an extraordinary demand for information and real-time communication through messaging, photos, and video 2. Economic forces: More people have access to the internet, 50%. 3. Technological: advances such as GPS, voice recognition 4. Competitive: variety of other social networks such as WhatsApp, WeChat, and Twitter 5. Legal and regulatory:

Environmental forces affect the organization, as well as its suppliers and customers. Chart pg 120 print

1. Suppliers: Social: • Demographic shifts • Cultural changes Economic: • Macroeconomic conditions •Consumer income 2. Organization Technological: •Changing technology •Technology's impact on customer value •Technology- enabled data analytics 3. Customers Competitive: •Alternative forms of competition •Small businesses Regulatory: • Laws protecting competition • Laws affecting marketing mix actions •Self-regulation

ECONOMIC FORCES PG 130

1. macroeconomic Conditions 2. Consumer income 3. 4.

Technology's Impact on Customer Value

1.Technology also provides value through the development of new products. 2.Technology can also change existing products and the ways they are produced. ex.Many companies are using technological developments to recycle products through the manufacturing cycle several times. 3.

The Department of Labor monitors consumer expenditures through its annual Consumer Expenditure Survey

13 percent of their income on food, 33 percent on housing, and 3 percent on clothes, 24 percent on healthcare and transportation.

Hispanics, who may be from any race, currently make up

17 percent of the U.S. population and are represented by Mexicans, Puerto Ricans, Cubans, and others of Central and South American ancestry.

Populations are also shifting within states:

1930s - 2000s from cities to suburbs

Years of recession

1973-75, 1981-82, 1990-91, and in 2001. Most recently, a recessionary period began in 2007 and ended in 2009, becoming the longest in recent history.

How many users does Facebook have today?

2.3 billion

Which countries will have a decline of population in the future?

38 countries, including China, Japan, Ukraine, Russia, Romania, Poland, Spain, and Taiwan, will be declining.

How much does the most recent estimate the world population?

7.6 billion people in the world today, and the population is likely to exceed 9.9 billion by 2050.

What percentage of today's shoppers considered themselves environmentally friendly ?

82%

Barrier to entry

A company scanning its environment must consider the possible barriers to entry for other firms, which are business practices or conditions that make it difficult for new firms to enter the market.

b. Power of Buyers and Suppliers

A competitive analysis must consider the power of buyers and suppliers. Powerful buyers exist when they are few in number, there are low switching costs, or the product represents a significant share of the buyer's total costs. This last factor leads the buyer to exert significant pressure for price competition. A supplier gains power when the product is critical to the buyer and when it has built up the switching costs.

5. Population shifts pg 126

A major regional shift in the U.S. population toward southern and western states is under way 1. 3 components of the shift. natural population, state to state migration, international migration 2. Nevada, Idaho, Utah, Arizona, Florida, and Washington grew at the fastest rates 3. Illinois declined at the greatest rate 4. A century ago 10 of the populous cities in the United States was within 500 miles of the Canadian border 5. Today, 7 of the top 10 are in states that border Mexico 6.Today, 30 percent of all Americans live in central cities, 50 percent live in suburbs, and 20 percent live in rural locations.

6. Racial and Ethnic Diversity pg 127

A notable trend is the changing racial and ethnic composition of the U.S. population.

CULTURE PG 128

A second social force, culture, incorporates the set of values, ideas, and attitudes that are learned and shared among the members of a group 1. The Changing Attitudes and Roles of Men and Women 2. Changing Values

Approximately one in three U.S. residents belongs to the following racial or ethnic groups:

African American, Native American or Alaska Native, Asian American, or Native Hawaiian or Pacific Islander

Enviromental scan in todays market:

An environmental scan of today's marketplace shows the many important trends that influence marketing

4. American Household pg 124

As the population age profile has changed, so has the structure of the American household. 1. 1960 75 percent of all household consisted of married couples. Today only 48 percent 2. 20 % are married 3. 10% working dads and stayhome moms 4. Fastest growing group a child who as moved back with their parents. 5. 18-34 years old exceed the number of couple living together. 6. 25% may adults may never married. 7. 40% of baby boomers will divorse its called gray divorce 8. Today, one of every three Americans is a stepparent, stepchild, stepsibling, or some other member of a blended family.

Hispanics

By 2030, the Hispanic population will grow to more than 74 million, or 21 percent of the population.

The two most popular surveys of consumer expectations

Consumer Confidence Index, conducted by a nonprofit business research organization called the Conference Board, and the Index of Consumer Sentiment (ICS), conducted by the Survey Research Center at the University of Michigan

The surveys track the responses of consumers to specific questions about their expectations, and the results are reported once each month.

Consumer Confidence index, and Conference Board, Index of consumer sentiment (ICS)

2. Changing Values

Culture also includes values that may differ over time and between countries.

1. DEMOGRAPHICS

Describing a population according to selected characteristics such as age, gender, ethnicity, income, and occupation is referred to as demographics. 1. The world Population at a Glance 2. The U.S Population 3. Generational Cohorts 4. The american Household 5. Population Shifts 6. Racial and Ethnic Diversity

What are companies doing to adapt the new market place?

Developing Multicultural Marketing

What challenges has facebook had?

Facebook has recently faced a variety of challenges related to misinformation, election interference, and control of personal information

What was Facebooks success

Facebook's incredible success was the result of many things, including its ability to observe and adapt to a rapidly changing marketing environment

Minority

Finally the term minority as it is currently used is likely to become obsolete as the total size of all ethnic groups will grow from 37 percent of the population to 50 percent of the population in 2044.

a. marketspace

First, the development of online capabilities created the marketspace, an information- and communication based electronic exchange environment occupied by sophisticated computer and telecommunication technologies and digital offerings

metropolitan divisions

If a metropolitan statistical area contains a population of 2.5 million or more, it may be subdivided into smaller areas called metropolitan divisions.

Combined statistical

In addition, adjacent metropolitan statistical areas and micropolitan statistical areas may be grouped into combined statistical areas

2. Components of Competition

In developing a marketing program, companies must consider the factors that drive competition: entry, the bargaining power of buyers and suppliers, existing rivalries, and substitution possibilities.3

India and China

India is predicted to have the world's largest population in 2050 with 1.68 billion people, replacing the current largest country, China, which will have a population of 1.34 billion people.

What have marketer finally learn?

Mobile devices and social media are often the best way to reach multicultural audiences.

1.Macroeconomic Conditions

Of particular concern at the macroeconomic level is the performance of the economy based on indicators such as GDP (gross domestic product), unemployment, and price changes (inflation or deflation).

3. TECHNOLOGICAL FORCES pg 133

Our society is in a period of dramatic technological change 1. Technology of Tomorrow 2. Technology's Impact on Customer Value 3. Technology Enables Data Analytics

Average capita income for Switzerland, United States and Ethiopia.

Per capita income, for example, ranges from $80,560 in Switzerland, to $58,270 in the United States, to $740 in Ethiopia.6

Recessions

Periods of declining economic activity. During recessions, businesses decrease production, unemployment rises, and many consumers have less money to spend

Internet of Things (IoT).

Predicts the consumers behavior and preference.

Which country is expected to have an older population by 2050?

South Korea, Japan, Bosnia, Singapore, China, Portugal, and Greece

2. The U.S Populations pg: 123

Studies of the demographic characteristics of the U.S. population suggest several important trends.

What is the most increasingly value for consumers in the U.S around the globe.

Sustainability and preserving the environment

Technology Enables Data Analytics

Technology has also had a dramatic impact on the operations of marketing organizations. a. marketspace b. electronic commerce c. Internet of Things (IoT).

2. Consumer income

The ability of the consumer to have money to purchase. 1. Gross income: The total amount of money made in one year by a person, household, or family unit is referred to as gross income 2. disposable income: The second income component, disposable income, is the money a consumer has left after paying taxes to use for necessities such as food, housing, clothing, and transportation. 3. discretionary income: The third component of income is discretionary income, the money that remains after paying for taxes and necessities.

Competition

The fourth component of the environmental scan, competition, refers to the alternative firms that could provide a product to satisfy a specific market's needs

Blended Family

The majority of divorced people eventually remarry, which has created the blended family, one formed by merging two previously separated units into a single household

Generation Z

The post millenial, 1997-2010 1. Their values were formed by the Great Recession, ISIS, Sandy Hook, marriage equality, the first black president, and a growing interest in populism. 2. They prefer natural look 3. Multitasker 4. Learn online, use digital and physical aspects of the marketplace 5.Generation Z consumers say they will pay more for a product or brand if it promotes environmental issues, social justice, and gender equality. 6. More than anyone they find products through social media.

1. ENVIRONMENTAL SCANNING PG 120

The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends is called environmental scanning.

Economy

The second component of the environmental scan, the economy, pertains to the income, expenditures, and resources that affect the cost of running a business and household.

2. SOCIAL FORCES (TEST)

The social forces of the environment include the demographic characteristics of the population and its culture. Changes in these forces can have a dramatic impact on marketing strategy. 1. Demographics 2. Culture

1. Environmental Forces

The uncontrollable forces that affect a marketing decision and consist of social, economic, technological, competitive, and regulatory forces. 1. Social 2. Economic 3. Technological 4. Competition 5. Regulatory

Technology of tomorrow

We can not predict what technology will look tomorrow

a. Entry

When other business firms make it impossible for a new firm to enter the market. For example: Western Union and MoneyGram dominate the $600 billion money transfer market because of their huge distribution networks of branch offices and global pickup locations. Potential competitors find it difficult to enter the market because lack of distribution limits consumer access.

3. Oligopoly

a common industry structure, occurs when a few companies control the majority of industry sales. The wireless telephone industry, for example, is dominated by four carriers that serve more than 95 percent of the U.S. market. Verizon, AT&T, T-Mobile, and Sprint have 154, 150, 77, and 54 million subscribers, respectively

In the past, a list of values in the United States included:

achievement, work, efficiency, and material comfort.

Analytics

analytics is associated with success in the marketplace

African American

approximately 49 million, or 14 percent of the population

Exurbs

communities that arise farther out than the suburbs and are typically populated by residents of high socioeconomic status a shift from suburbs to more remote suburbs called exurbs

Multiracial

currently makes up 2.6 percent of the population and is expected to grow to 3.6 percent

Contrasting values outside the United States:

for example, include belief in fate, the importance of tradition, the importance of rank and status, a focus on group welfare, and acceptance of birthright.

1. Pure Competition

in which there are many sellers and each has a similar product.

Asians

increase to 24 million, or 7 percent of the population

Another important global trend:

is the shifting age structure of the world population. Worldwide, the number of people 60 years and older is expected to more than double in the coming decades and reach 2.1 billion by 2050.

2. monopolistic competition,

many sellers compete with substitutable products within a price range. For example, if the price of coffee rises too much, consumers may switch to tea. C

generational marketing

marketing to members of a generation, who tend to share the same outlook and priorities Because the members of each generation are distinctive in their attitudes and consumer behavior, marketers have been studying the many groups or cohorts that make up the marketplace and have developed generational marketing programs for them.

Population Reference Bureau and the United Nations

monitor the world population profile

How much do Hispanics, African Americans, and Asian Americans spend.

more than $1.5 trillion, $1.3 trillion, and $1.0 trillion each year

Non Hispanic Caucassians

non-Hispanic Caucasians will make up less than 50 percent of the U.S. population by 2044

Value consciousness

or the concern for obtaining the best quality, features, and performance of a product or service for a given price—is driving consumption behavior for many products at all price levels.

Baby Boomers

people born between 1946 and 1964 1. 76 miilion born 2. Retiring at a rate of 10,000 every 24 hours 3. they'll be 65 or older by 2030 4. wealthiest generation 5. 50% of all consumer spending 6. Commercial Target: health, fitness, retirement housing, financial planning, appearance 7. sometimes called the sandwich generation why because sometimes they find themselves with obligation to their parents and children.

Today, commonly held values include:

personal control, continuous change, equality, individualism, self-help, competition, future orientation, and action

Multicultural Marketing

programs, which are combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races.

U.S. Census Bureau

provide information about the American population.

4. pure monopoly

pure monopoly, occurs when only one firm sells the product. Monopolies are common for producers of products and services considered essential to a community: water, electricity, and cable service.Typically, marketing plays a small role in a monopolistic setting because it is regulated by the state or federal government.

Environmental trends typically arise from five sources:

social, economic, technological, competitive, and regulatory forces.

inflationary economy

the cost to produce and buy products and services escalates as prices increase

Generation Y (Millennials)

the group of consumers born between 1981-1996 1. This was a period of increasing births, which resulted from baby boomers having children, and it is often referred to as the echo-boom. 2. Influence on music, sports, computers, video games and all forms of communication, networking, smarth phones. 3. Have surpassed baby boomers with 75 million people. 4. Strong about environment and optismistic.

Technology

the third environmental force in Figure 3-2, refers to inventions or innovations from applied science or engineering research. Technological change leads to new products.

e. Regulatory

• Changing laws related to industries such as ride sharing, cannabis, and health care will have increasing impact on marketing decisions related to advertising, pricing, and customer data collection. • Social media self-regulation is declining as privacy and cybersecurity are becoming the subject of many regulatory initiatives such as the GDPR in Europe and the CCPA in California. • Advertising platforms such as Facebook and Google will face increasing pressure to deter fraud and "fake" news, possibly through the use of blockchain technology.

d. Competition

• Marketers are shifting their focus from single transactions to creating ongoing relationships through high-engagement, experiential customer journeys. • Machine intelligence is becoming a competitive strategy as businesses and consumers embrace chatbots and other forms of automation that can reach and respond to prospects and customers. • Companies are using faster and more flexible innovation strategies to create competitive advantage by bringing new smartphones, cars, and brands to the market faster.

c. Technological

• The Fourth Industrial Revolution, characterized by 5G networks, AI, the IoT, robotics, and other technologies, is gaining momentum. • Voice-connected devices such as Amazon's Alexa, Google's Assistant, and Apple's Siri are quickly becoming the natural way to interact with technology. • Visual searches, on platforms such as Pinterest and Google, are facilitating a growing interest in the ability to find information based on an image rather than keywords

b. Economic

• The concept of a circular economy, which emphasizes reuse rather than disposal of resources, is gaining popularity among European and U.S. firms. • Expenditures for video advertising is growing, and will soon exceed $20 billion, as video now accounts for 85 percent of all Internet trac. • New global trade agreements resulting from Brexit, the U.S.-China trade deal, USMCA, and other discussions will lead to changes in the availability and costs of many products and services.

a. Social:

•Interest in health and wellness is growing as biometric "watches" add heart, sleep, and remote monitoring capabilities. • Consumers are increasingly demanding personalized, one-to-one marketing that matches their interests and improves their customer experience. • There is an increasing expectation that companies should tell the stories of their brands with transparency and authenticity and that the brands should enable a positive social impact.

To assist marketers in gathering data on the population, the Census Bureau has developed a classification system to describe the varying locations of the population. The system consists of two types of statistical areas:

∙ A metropolitan statistical area has at least one urbanized area of 50,000 or more people and adjacent territory that has a high degree of social and economic integration. ∙ A micropolitan statistical area has at least one urban cluster of at least 10,000 but less than 50,000 people and adjacent territory that has a high degree of social and economic integration.