978-1259709074 Chapter 5 Part 2

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Chapter 5 – Analyzing the Marketing Environment Marketing 6th

McGraw-Hill Education.

Connect Activities

Activity

Type

Learning Objectives 05–

The Marketing Mix: Sporting Goods and Services

Click & Drag

Dole Analyzes the Environment

Video Case

McDonald’s: Analyzing the Marketing Environment

Video Case

Ford: A New Car for a New Generation

Video Case

Seventh Generation: Responding to the Marketing

Environment

Case Analysis

adidas: Boost Technology and the Marketing

Environment

Video Case

iSeeIt Video Case: Macroenvironmental Scanning

Video Case

The Marketing Mix: Sporting Goods and Services

▪ Activity Type: Click & Drag

▪ Learning Objectives: 5-02, 5-03

▪ Difficulty: Medium

▪ Activity Summary: Students are asked to classify five different groups according to the type of

demographic variable it represents.

Activity

▪ Introduction: Demographics indicate the characteristics of human population and segments,

especially those used to identify consumer markets. Demographic characteristics can include age,

gender, race, income, education, religion, and ethnicity. Marketers who are armed with demographic

information can tailor their promotional strategy to appeal to those demographic segments.

Categorize the following statements according to the attributes and trends that resulted from each

demographic characteristic.

▪ Concept Review: In addition to understanding their customers, the company itself, their competition,

and their corporate partners in their immediate environment, marketers must also understand the

macroenvironmental factors that operate in the external environment. The primary components of the

macroenvironment are culture, demographics, social issues, technologic advances, economic

situation, and political/regulatory environment.

Follow-Up Activity

Suppose that you are a small manufacturer of athletic shoes. Choose one of the demographic groups

identified in the activity and create a simple marketing mix for that group: a product (or product line), a

price level, the type of store (or website) where the product should be sold, and some ideas about how to

promote the products.

Chapter 5 – Analyzing the Marketing Environment Marketing 6th

McGraw-Hill Education.

Dole Analyzes the Environment

▪ Activity Type: Video Case

▪ Learning Objectives: 5-02, 5-04

▪ Difficulty: Medium

▪ Activity Summary: This video explores how Dole has used what it learns by monitoring the

macroenvironment to identify product opportunities. After the video ends, students are asked

questions about the video and related course concepts.

Activity

▪ Introduction: As the world’s largest producer and marketer of fruits and vegetables, Dole is

constantly analyzing the environment to make sure its marketing messages are on target.

▪ Concept Review: One of the goals of value-based marketing is for the firm to provide consumers

greater value than that offered by competitors. This provision requires that the firm look at the entire

business process from a consumer’s point of view. Consumers’ needs and wants, as well as their

ability to purchase, are affected by a host of factors that evolve over time. Firms use a variety of tools

to keep track of their competitors’ activities and communicate with their corporate partners.

Furthermore, they monitor their macroenvironment to determine how different factors influence

consumers and what type of response will achieve the best results.

▪ Video: The video is presented to the student below the introductory information. The video plays

embedded on the page, after which questions are presented.

Follow-Up Activity

Divide the students into small groups. Ask each group to choose a specific social trend and then identify

some companies for which this trend creates opportunities. The examples in the textbook are off limits!

McDonald’s: Analyzing the Marketing Environment

▪ Activity Type: Video Case

▪ Learning Objectives: 5-02, 5-04

▪ Difficulty: Medium

▪ Activity Summary: Discusses how McDonald’s has responded to concerns about nutrition and

safety of its food. After the video ends, students are asked questions about the video and related

course concepts.

Activity

▪ Introduction: McDonald’s has become more aware of recent changes in its customers’ wants with

regard to fast food, and the company has adapted its marketing mix accordingly. By paying close

attention to customer needs and continuously monitoring the business environment, McDonald’s can

identify potential opportunities.

Chapter 5 – Analyzing the Marketing Environment Marketing 6th

McGraw-Hill Education.

▪ Concept Review: Consumers may be influenced by the actions of the focal company, the company’s

competitors, and the corporate partners that work with the firm to provide goods and services to

consumers. The firm is also influenced by the macroenvironment, which includes various cultural and

demographic influences as well as social, technological, economic, and political/regulatory factors.

Firms should monitor the macroenvironment to determine the ways in which these factors influence

consumers and to develop appropriate responses. Sometimes, with careful attention to the

environment, a firm can even anticipate trends and reap large rewards.

Ford: A New Car For a New Generation

▪ Activity Type: Video Case

▪ Learning Objectives: 05-02, 05-03, 05-04

▪ Difficulty: Medium

▪ Activity Summary: Discusses how Ford has responded to macroenvironmental trends in the

marketing of the Ford Fiesta. After the video ends, students are asked questions about the video and

related course concepts.

Activity

▪ Introduction: Marketers use many factors to examine the environment when developing a new

product. In this video, you see how Ford created a new customer base for a comeback vehicle and

how the product was recreated, or repositioned, to fit Ford’s target market.

▪ Concept Review: By paying close attention to customer needs and continuously monitoring the

business environment in which the company operates, marketers identify potential opportunities that

provide greater value to consumers. In addition to understanding their customers, companies must

understand macroenvironmental factors that operate in the external environment, namely the culture,

demographics, social issues, technological advances, economic situation, and political/regulatory

environment (CDSTEP).

▪ Video: The video is presented to the student below the introductory information. The video plays

embedded on the page, after which questions are presented.

Follow-Up Activities

Either review the following articles with the class, or assign them for out-of-class reading:

▪ http://www.forbes.com/sites/dalebuss/2013/08/22/thanks–to-fiesta-ford-leads-retail-growth-with-

millennials/

▪ http://www.jeffbullas.com/2010/02/18/the-7-secrets–to-fords-social-media-marketing-success/ (You

may have to click past a splash page or other ad)

Discuss with the students what makes a big company like Ford successful (or not) in appealing to

Generation Y. You may want to start by asking them specifically about Ford and the Fiesta: Do they know

people who own them, what are their attitudes, and so on.

Chapter 5 – Analyzing the Marketing Environment Marketing 6th

McGraw-Hill Education.

Seventh Generation:

Responding to the Marketing Environment

▪ Activity Type: Case Analysis

▪ Learning Objectives: 05-01, 05-02, 05-04

▪ Difficulty: Hard

▪ Activity Summary: Students answer questions applying the marketing strategy of Seventh

Generation, a “green” consumer products company, to chapter concepts.

Activity

▪ Introduction: Taking an Iroquois directive—“In our every deliberation, we must consider the impact

of our decisions on the next seven generations”—the consumer product company Seventh

Generation has applied a distinctly modern sensibility to derive a long-term approach to the marketing

environment. Although its mission statement might be focused on future generations, Seventh

Generation has successfully appealed to current consumer demand for sustainable, environmentally

safe, green products. As its story illustrates, in a constantly changing marketing environment, success

depends on identifying opportunities and then responding quickly, accurately, and sensitively to

consumers.

▪ Concept Review: Consumer demands and expectations are constantly changing, and marketers

must pay close attention to customer needs and the business environment. Consumers are at the

center of the marketing environment; everything a firm does should revolve around the customer. But

many factors in the marketing environment have great impact on what consumers purchase and

consume. The immediate consumer environment includes competitors, corporate partners,

competitive intelligence and the company’s capabilities. There are also factors that operate in the

external macroenvironment: culture, demographics, social trends, technological advances, the

general economy, and the political/regulatory environment. Marketers must monitor these constantly

changing factors and respond with tactics and marketing strategies to capitalize on opportunities.

Follow-Up Activity

Explore “greenwashing” in a class discussion. Three possible ways to do this:

▪ Show the video in http://thegreenwashingblog.com/2014/02/25/marketing-and-greenwashing/ – a five–

minute video discussing the question “When does marketing become greenwashing?” It gets a little

bit dry but would work well for a more advanced class.

▪ Show the video embedded in this blog entry: http://thegreenwashingblog.com/2014/03/11/video–

greenwashing-public-service-announcement/. In this video, three ads with implied or overt

greenwashing are dissected (and, frankly, ridiculed). It’s silly, but raises questions about how much

consumers really think about these questionable “green” claims.

▪ Discuss whether or not the students think consumers really care about “green.” If buying green

products really matters to consumers, what behaviors would they expect to see (willingness to pay

more, going to extra effort to find these products, researching green products)?

Chapter 5 – Analyzing the Marketing Environment Marketing 6th

McGraw-Hill Education.

adidas: Boost Technology and the Marketing Environment

▪ Activity Type: Video Case

▪ Learning Objectives: 05-01, 05-02, 05-04

▪ Difficulty: Medium

▪ Activity Summary: This video case describes an advanced technology adidas developed in a

partnership with a corporate partner to respond to trends in consumer preferences. After the video

ends, students are asked questions about the video and related course concepts.

Activity

▪ Introduction: Adidas has developed Boost technology to improve performance of its running shoes,

offering superior cushioning. Adidas developed this innovation to respond to trends in the marketing

environment, and also to leverage its own capabilities and those of its partners.

▪ Concept Review:

o Culture: The set of values, guiding beliefs, understandings, and ways of doing things shared by

members of a society.

o Demographics: Information about the characteristics of human populations and segments.

o Foreign currency fluctuations: Changes in the value of a country’s currency relative to the

currency of another country.

o Macroenvironmental factors: Aspects of the external environment that affect a company’s

business, such as the culture, demographics, social issues, technological advances, economic

situation, and political/regulatory environment.

o Immediate environment: Aspects of the environment that affect a company’s business, such as its

capabilities, its competitors, and its corporate partners.

Follow-Up Activities

• Ask if any students are serious runners; if so, what kind of shoe (both features and brand) do they

prefer and why? Have their preferences changed over time?

• Ask students to read some professional reviews of Boost products and report back—how innovative

do the experts consider this technology to be? (Note: adidas now has multiple Boost product lines:

Ultra Boost, Energy Boost, and Pure Boost.)

ISeeIt Video Case: Macroenvironmental Scanning

▪ Activity Type: Video Case

▪ Learning Objectives: 05–02

▪ Difficulty: Easy

▪ Activity Summary: This video case explores the different categories of macroenvironmental factors

from the perspective of Hope Springs, a bottled water company focusing on sustainability and

environmental protection.

Chapter 5 – Analyzing the Marketing Environment Marketing 6th

McGraw-Hill Education.

Activity

▪ Introduction: Changes in the marketing environment are a source of opportunities and threats that

need to be continuously monitored. Through the scanning of macroenvironmental forces,

organizations can quickly identify trends and changes in the business climate that could significantly

impact their marketing strategies. Take for instance Hope Springs and how Julie, its marketing

executive, must consider how the external business environment impacts everything Hope Springs

does as a business. Social and demographic trends, or how society and consumers are changing,

have influenced the company’s decision to be sustainability focused. Similarly, Hope Springs’

understanding of political and legal issues in countries where it supports clean water initiatives has

helped define where to focus its sustainability efforts. Technology, which allowed Hope Springs to

develop an innovative bottle design, also provides an opportunity for consumers to find the nearest

bottle filling station. All of these external environments, along with an understanding of the

competitive landscape, are important considerations in the ongoing marketing activities of Hope

Springs.

▪ Video: After the video ends, students are asked questions about the video and related course

concepts.