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Chapter 5 - Analyzing the Marketing Environment Marketing 6th
Chapter 5
Analyzing the Marketing Environment
Tools for Instructors
Brief Chapter Outline
Learning Objectives
Extended Chapter Outline
Answers to End of Chapter Learning Aids
Chapter Case Study
Additional Teaching Tips
Connect Activities
Brief Chapter Outline
A Marketing Environment Analysis Framework
The Immediate Environment
Macroenvironmental Factors
End of Chapter Learning Aids
Chapter Case Study: A Next-Generation Cleanser
Learning Objectives
LO5-1 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. If a firm does not monitor its
competitors, the firm’s customers 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 corporate partners—helps add value to firms’ products
and services.
LO5-2 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 technological 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
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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Chapter 5 - Analyzing the Marketing Environment Marketing 6th
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.
LO5-3 Describe the differences among the various generational cohorts
Generational cohorts are groups of consumers of the same generation. They are likely to have similar
purchase and consumption behaviors due to their shared experiences and stages of life. The four main
types include Gen Z (born 2001–2016), Gen Y (born 1977–2000), Gen X (1965–1976), and Baby
Boomers (1946–1964). Each of these segments exhibits different consumption patterns, attitudes toward
the world, and preferences with regard to marketing efforts.
LO5-4 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.
Extended Chapter Outline with Teaching Tips
I. A Marketing Environment Analysis Framework
II. The Immediate Environment
A. Company Capabilities
B. Competitors
C. Corporate Partners
Progress Check: Several questions are offered for students to check their understanding of core
concepts.
1. What are the components of the immediate environment?
III. Macroenvironmental Factors
A. Culture
1. Country Culture
2. Regional Culture
B. Demographics
3. Generational Cohorts
4. Income
5. Education
6. Gender
7. Ethnicity
C. Social Trends
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education. 2
Chapter 5 - Analyzing the Marketing Environment Marketing 6th
8. Health and Wellness Concerns
9. Greener Consumers
10. Privacy Concerns
D. Technological Advances
E. Economic Situation
F. Political/Regulatory Environment
G. Responding to the Environment
Progress Check: Several questions are offered for students to check their understanding of core
concepts.
1. What are the six key macroenvironmental factors?
2. Differentiate between country culture and regional culture.
3. What are some important social trends shaping consumer values and shopping behavior?
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education. 3
