PowerPoint Slides With Teaching Notes
Power Point Slide Teaching Notes
5-1: Analyzing the Marketing
Environment
5-2: Analyzing the Marketing
Environment
These questions are the learning objectives
guiding the chapter and will be explored in more
detail in the following slides.
5-3: Travelodge Services such as hotel chains must constantly
adapt to changing customer needs by
transforming itself into one of the most
innovative sectors marketing its services today.
Ask students to describe their version of a
“desirable” hotel or motel offering.
5-4: A Marketing Environment Analysis
Framework
In all marketing activities, the consumer is at the
center.
Anything that affects consumers affects
marketers.
Any change in one of these environments likely
requires an adjustment to the firm’s marketing
mix.
By identifying potential environmental trends,
firms often can take proactive steps.
5-5: The Immediate Environment The immediate environment includes the firm
and its immediate influences, such as competition
and corporate partners.
5-6: Successfully Leveraging Company
Capabilities
Ask students: What are Pepsi’s core
competencies? What do they do well?
Answer: They know how to bottle beverages,
distribute them to stores, and promote their brand.
Ask students: How has Pepsi capitalized on their
core competencies in the face of changing market
trends?
Answer: The trend toward more diet-conscious
consumers has led to the development of
low-calorie alternatives to sodas.
Both Coke and Pepsi understood the market had
changed and introduced bottled water products
with great success.
In 2004, Americans consumed 23 gallons of
bottled water per person—ten times as much as in
1980.
5-7: Competitors Competition 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.
5-8: Gillette (Fusion) versus
Energizer (Schick)
Gillette accused Schick of engaging in false and
misleading advertising when ads claimed that its
Hydro razor would hydrate skin.
Schick’s parent company countered with the
complaint that Gillette’s fusion ProGlide Razor
ads attempt to deceive when they assert that the
blades are “Gillette’s thinnest blades ever.”
5-9: Corporate Partners Firms must work together to create a seamless
system that delivers goods and services to
customers when and where they want them.
Many attribute a key reason for Walmart’s
success to their close relationships with their
suppliers.
5-10: Check Yourself 1. The company’s capabilities, competitors,
competitive intelligence, and the company’s
corporate partners.
5-11: Macroenvironmental Factors This slide can be used to review this topic instead
of the following slides, which provide more
in-depth discussions.
5-12: Culture Firms often remove brands from the market
because of their poor overall sales, but this
strategy can backfire when those brands have
strong regional support.
For example, the removal of a chowder cracker
caused such upheaval among Northeastern
consumers that the firm hired a tall ship to
reintroduce the cracker to its New England
market, where consumers had threatened to
boycott all products from the company if the
cracker was not returned.
5-13: Controversy Surrounds
All Catholic Town
Note: Please make sure that the video file is
located in the same folder as the PowerPoint
slides.
5-14: Demographics Ask students: What are some typical
demographics variables?
Answer: age, gender, income, education.
Demographic segmentation is probably the most
common form of segmentation because the
information is so widely available.
5-15: Generational Cohorts Group activity: Have students brainstorm a list
of the defining characteristics of their generation.
Ask students: How does your generation differ
from previous generations, such as your parents?
What macroenvironmental forces have had the
most impact on your generation?
5-16: Income The “middle-class squeeze” is a very real global
phenomenon. Many developing countries face
similar income inequities to those found in the
United States.
Pay gaps also cause problems for many new
college graduates who find they cannot afford to
live on their own and must move back in with
their parents.
Although some marketers choose to target only
affluent population segments, others have had
great success delivering value to middle- and
low-income earners.
Consider, for example, the toys presented by the
specialty retailer Hammacher Schlemmer (HS)
versus the mass appeal of Walmart’s toy sections.
5-17: Education Ask students: Do you plan to continue your
education after graduation?
Many students believe they will never return to
school after they finish their Bachelor’s degree,
but modern conditions make this choice more and
more unlikely.
Lifelong learning of new skills and new
knowledge has become key to survival in the
global economy
5-18: Gender Women now make up more than 60% of the
college population
.
Ask students: How do you believe this will
affect the workplace in the future?
Ask students: Do you believe that there are still
significant gender differences? What are they?
5-19: Ethnicity Ask students: What steps can and should
marketers take to respond to the changing ethnic
mix of the United States?
Many marketers already have adjusted their
marketing mix to meet the needs of ethnically
diverse segments better.
This YouTube video is for a Carlos Mencia Bud
Light Super Bowl ad about teaching English.
(always check YouTube links before class).
5-20: Social Trends This graphic introduces significant social trends.
Video: “What’s Hot and Not in Celebrity
Magazine Covers”
Ask students: Why are traditional celebrities not
catching consumers’ attention?
Ask students: How are tabloids going to
continue to entice readers to buy their content?
5-21: Health and Wellness Concerns Recent news stories have made many consumers
increasingly aware of the threats of worldwide
pandemics or epidemics.
Health concerns, especially those pertaining to
children, extend far beyond short-term crises
though.
5-22: McDonald’s Moms Salad, coffee, and yogurt. How McDonald’s is
listening the consumer by offering healthier food
and new facility makeovers, which have led to
increased market share.
Note: Please make sure that the video file is
located in the same folder as the PowerPoint
slides.
5-23: Greener Consumers Green consumers purchase products based on
issues beyond the tangible product.
These issues can include a variety of social
causes such as environmental awareness,
protection of animals, HIV/AIDS awareness and
prevention, etc. Consumers who purchase these
products do so to support these causes.
5-24: Privacy Concerns In recent years, firms have had to inform
consumers of the steps they take to protect their
privacy. The government also has instituted new
rules for privacy protection.
Ask students: Have you ever had a privacy
problem with a credit card or when using the
Internet?
5-25: Technological Advances Arguably, the single most important change in the
way we live is the introduction of new
technology.
Ask students: What new technologies have you
seen at retailers?
This web link is for the shopper’s tool page of
Stop & Shop, a large East Coast grocery retailer.
They offer self-scanners, computer kiosk deli
ordering, and self-checkout.
5-26: Economic Situation Depending on the time of year, discuss
projections about Christmas shopping, vacation
planning, or home buying. Various economic
factors affect each of these areas.
The web link leads to the Consumer Confidence
Index, which takes into account how consumers
feel about how the economy is doing. This
economic indicator relates directly to spending.
5-27: Political/Regulatory Environment:
Competitive Practice and Trade
Legislation
This list includes the major legislation designed
to ensure a competitive marketplace and clearly
demonstrates the U.S. government’s long history
of enacting laws that protect fair trade.
5-28: Check Yourself 1. Culture, demographics, social issues,
technological advances, economic situation,
and political/regulatory environment.
2. Country culture is the entire country but
regional culture is based on the region or area
within the country.
3. Thrift, greener consumers, marketing to
children, privacy concerns, and time-poor
societies.
Additional Teaching Tips
Perhaps the most challenging aspect of this chapter is for students to truly understand the
relationships between the areas of the marketing environment. Since the graphical figure (page
85) appears to be self-explanatory, students tend to gloss over it in the reading since they
understand most of the vocabulary in the figure. Instructors may want to lead a group assignment
in which groups need to create a marketing situation, which demonstrates the impact of the
factors (instructors can assign one per team, such as “social” to team 1, economic to team 2, and
so on. The group also needs to go one-step further in assessing that factor’s effect on the
completion, corporate partners, the company, and ultimately the consumer. The instructor also
may elect to have teams come up with one example of each of the factors (though this may be
time consuming). Students will tend to shy away from a marketing example so the instructor
should emphasize it needs to be a clear marketing example.
Once those examples are shared, (Perhaps put on the white board or transferred to the
transparency of this figure), class discussion should follow addressing the impact of the
environmental factors on the marketing strategy and how it may even impact the SWOT.
Online Tip: This exercise is easily transferred to either an online team assignment or separate
posts with each of the external factors becoming one of the post topics (divide the class by last
name alphabetically to answer some of the posts or have students contribute one example to each
of the posts/external factors).