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Chapter 5
Analyzing the Marketing Environment
1.1.1.1.1.1.1.1 Tools For Instructors
Brief Chapter Outline
Learning Objectives
Chapter Overview (“Summing Up”)
Extended Chapter Outline with Teaching Tips
PowerPoint Slides with Teaching Notes
Answers to End of Chapter Learning Aids
Chapter Case Study
Additional Teaching Tips
1.1.1.1.1.1.1.2 Brief Chapter Outline
A Marketing Environment Analysis Framework
The Immediate Environment
Macroenvironmental Factors
Summing Up
End of Chapter Learning Aids
Chapter Case Study: A Next-Generation Cleanser
1.1.1.1.1.1.1.3 Learning Objectives
LO1 Outline how customers, the company, competitors, and corporate partners affect
marketing strategy.
LO2 Explain why marketers must consider their macroenvironment when they make
decisions.
LO4 Identify various social trends that affect marketing.
1.1.1.1.1.1.1.4 Chapter Overview (“Summing Up”)
LO1 Outline how customers, the company, competitors, and corporate partners affect
marketing strategy.
Everything a firm does should revolve around the customer; without the customer, nothing gets
sold. Firms must discover their customers’ wants and needs and then be able to provide a
valuable product or service that will satisfy those wants or needs. If there were only one firm and
many customers, a marketer’s life would be a piece of cake. But because this situation rarely
occurs, firms must monitor their competitors to discover how they might be appealing to their
customers. Without competitive intelligence, a firm’s custom-ers might soon belong to its
competitors. Though life certainly would be easier without competitors, it would be difficult, if
not impossible, without corporate partners. Good marketing firms or departments work closely
with suppliers, marketing research firms, consultants, and transportation firms to coordinate the
extensive process of discovering what customers want and finally getting it to them when and
where they want it. Each of these activities—discovering customer needs, studying competitors’
actions, and working with cor-porate partners—helps add value to firms’ products and services.
LO2 Explain why marketers must consider their macroenvironment when they make
decisions.
What are the chances that a fast-food hamburger restaurant would be successful in a
predominantly Hindu neighborhood? Not good. Marketers must be sensitive to such cultural
issues to be successful, and they must also consider customer demographics—age, income,
market size, education, gender, and ethnicity—to identify specific customer target groups. In any
society, major social trends influence the way people live. In no other time in history has
technology moved so rapidly and had such a pervasive influence on the way we live. Not only do
marketers help identify and develop technologies for practical, everyday uses, but techno-logical
advances help marketers provide consumers with more products and services more quickly and
efficiently. The general state of the economy influences how people spend their discretionary
income. When the economy is healthy, marketing success comes relatively easily. But when the
economy gets bumpy, only well-honed marketing skills can yield long-term successes. Naturally,
all firms must abide by the law, and many legal issues affect marketing directly. These laws
pertain to competitive practices and protecting consumers from unfair or dangerous products.
LO3 Identify various social trends that impact marketing.
Social trends have a tremendous impact on what consumers purchase and consume.
Understanding these trends—health and wellness, green marketing, and privacy issues, can help
marketers serve their customers better.
1.1.1.1.1.1.1.5 Extended Chapter Outline With Teaching Tips
2 A Marketing Environment Analysis Framework (PPT slide 5-4)
3 The Immediate Environment (PPT slide 5-5)
3.1Successfully Leveraging Company Capabilities (PPT slide 5-6)
3.2Competitors (PPT slide 5-7)
3.3Corporate Partners (PPT slide 5-9)
Check Yourself: Several questions are offered for students to check their understanding of core
concepts.
1. What are the components of the immediate environment? (PPT slide 5-10)
4 Macroenvironmental Factors (PPT slide 5-11)
4.1Culture (PPT slide 5-12)
4.1.1 Country Culture
4.1.2 Regional Culture
4.2Demographics (PPT slide 5-13)
4.2.1 Generational Cohorts (PPT slide 5-14)
4.2.2 Income (PPT slide 5-15)
4.2.3 Education (PPT slide 5-16)
4.2.4 Gender (PPT slide 5-17)
4.2.5 Ethnicity (PPT slide 5-18)
4.3Social Trends (PPT slide 5-19)
4.3.1 Price Sensitivity (PPT slide 5-20)
4.3.2 Health and Wellness Concerns (PPT slide 5-21)
4.3.3 Greener Consumers (PPT slide 5-22)
4.3.4 Privacy Concerns (PPT slide 5-23)
4.3.5 The Time-Poor Society (PPT slide 5-24)
4.4Technological Advances (PPT slide 5-26)
4.4.1 Economic Situation (PPT slide 5-27)
4.4.2 Political/Regulatory Environment (PPT slide 5-28)
Check Yourself: Several questions are offered for students to check their understanding of core
concepts. (PPT slide 5-29)
1. What are the six key macro-economic factors?
2. Differentiate between country culture and regional culture.
Answer: Country culture includes artifacts, behavior, dress, physical settings, ceremonies,
and so on but also includes subtle aspects of culture. Regional culture applies to a
3. Identify the different generational cohorts.
Answer: Baby Boomers, Generation Xers, seniors, Generation Y and tweens make up
4. What are some important social trends shaping consumer values and shopping behavior?
