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Chapter 5 - Analyzing the Marketing Environment Marketing 6th
Answers to End of Chapter Learning Aids
Marketing Digitally
1 Seventh Generation is the leading brand of nontoxic, environmentally safe household
products in the United States. Visit its website (http://www.seventhgeneration.com) and review
the philosophy behind the business. Next, review the site to identify the products the
company offers. Briefly summarize some of the consumer trends you think are reflected.
Describe the ways in which Seventh Generation’s products address the wants and needs of its
customers.
Seventh Generation is an example of a firm that centers its marketing strategy around green,
2 Visit The Cool Hunter (http://www.thecoolhunter.net) and identify examples that would provide
marketers insights regarding social trends.
Information on this website is constantly changing in order to highlight “all things creative.” The purpose
3 Visit and explore the website of your favorite breakfast cereal. Identify the demographics of its
target customer. Evaluate the effectiveness of its marketing strategy.
Marketing Applications
1 Assume you are going to open a new store selling fitness products. Describe it. Who are your
competitors? What would you do to monitor your competitors’ actions? Who are your
customers? What are you going to do to appeal to them? What are your social
responsibilities, and how will you meet them?
This question asks students to think about what it would take to open a new store selling fitness products.
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Chapter 5 - Analyzing the Marketing Environment Marketing 6th
1. How would your approach to buying a computer differ from your parents’ approach? What
about buying an outfit to wear to a party? How can firms use their knowledge of different
age or generational cohorts to market their products and services better?
Members of Generation Z were born into a world that was already full of electronic gadgets and digital
2. How can firms use customer demographics like income, market size, education, and
ethnicity to market to their customers better?
Demographic data indicates more than just income distribution, levels of education, or ethnicity within a
particular geographic area; marketers use this information to better understand their customers and
3. Identify some of the ethnicity changes in the United States. Describe how they might affect
the marketing practices of (a) a radio station in Texas, (b) food retailers in cities, and (c) a
home furnishing store in New York City.
Because of immigration and increasing birthrates among various ethnic and racial groups, the United
States continues to grow more diverse. Here are some of the effects on marketing practices:
(a) a radio station in Texas
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Chapter 5 - Analyzing the Marketing Environment Marketing 6th
4. Identify some recent technological innovations in the marketplace and describe how they
have affected consumers’ everyday activities.
Students will provide various answers. Here are some of the more popular technological innovations:
5. Why should a T-shirt shop in the United States care about the value of the Hong Kong
dollar?
6. Several social trends were discussed in the chapter. For each of these trends, choose a
retailer or service provider that you believe has seized the moment by grasping the
importance of the trend and successfully marketing to its customers as a result.
Examples might include:
7. Identify a company that you believe does a particularly good job of marketing to different
cultural groups. Justify your answer.
8. Examine the consumer protection legislation in Exhibit 5.5. Which law do you believe has
had the biggest impact on society in general? Which has had the largest impact on you
personally? Justify your answer.
Quiz Yourself
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Chapter 5 - Analyzing the Marketing Environment Marketing 6th
1 ABC Company knew that its customers were interested in environmentally friendly business
practices, so it began marking all of its products as environmentally friendly because they were made
with all-natural ingredients, even though ABC's plant was one of the worst polluters in town. The new
term for this practice is
a. deceptive advertising.
b. greenwashing.
c. environmental exploitation.
d. virtual greening.
e. enviromarketing.
9. One of the goals of value-based marketing is
a. to provide the greatest value for the least profit.
b. to sell products for the highest possible price.
c. to offer greater value than competitors offer.
d. to determine the value of the brand.
e. to sell to all consumers, regardless of their needs.
Chapter Case Study: A Next-Generation Cleanser
1 What consumer trends does Seventh Generation respond to most effectively?
Seventh Generation does a great job of responding to the social trend of green marketing. Green
4 Which consumer trends might it be missing?
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 Exhibit 5.1 (Understanding the Marketing
Environment) 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 that 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 competition, 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.
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Chapter 5 - Analyzing the Marketing Environment Marketing 6th
Once those examples are shared (perhaps put on the whiteboard or transferred to the transparency of the
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).
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McGraw-Hill Education. 5
Chapter 5 - Analyzing the Marketing Environment Marketing 6th
Connect Activities
Activity Type Learning Objectives 05-
01 02 03 04
The Marketing Mix: Sporting Goods and Services Click & Drag X X
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.
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Chapter 5 - Analyzing the Marketing Environment Marketing 6th
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
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.
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Chapter 5 - Analyzing the Marketing Environment Marketing 6th
Concept Review: Consumers may be influenced by the actions of the focal company, the company's
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
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-millen
nials/
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)
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McGraw-Hill Education. 8
Chapter 5 - Analyzing the Marketing Environment Marketing 6th
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
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)?
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Chapter 5 - Analyzing the Marketing Environment Marketing 6th
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:
oCulture: The set of values, guiding beliefs, understandings, and ways of doing things shared by
members of a society.
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.
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Chapter 5 - Analyzing the Marketing Environment Marketing 6th
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.
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