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Chapter 5 - Analyzing the Marketing Environment M: Marketing 6th
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
1
Instructor’s Manual: Implementation
Guide
This improved Instructor’s Manual (IM) contains more than just summaries of key concepts and features from the
sixth edition of M: Marketing that can be used as springboards for class discussion; it also provides best practices for
how to utilize the full product suite (from the textbook to SmartBook® to Connect®). In addition, this manual
includes a variety of supplemental teaching resources to enhance your ability to create an engaging learning
experience for your students. Regardless of whether you teach in face-to-face traditional classrooms, blended
(flipped) classrooms, online environments, or hybrid formats, you’ll find everything you need in this improved
resource.
The IM follows the order of the textbook outline for each chapter and is divided into sections for each learning
objective. To ease your class preparation time, we’ve included references to relevant PowerPoint slides that can be
shown during class. Note that you can adjust slides as needed to ensure your students stay actively engaged
throughout each session.
AVAILABLE INSTRUCTOR RESOURCES
Within the Instructor Resources Tab, located in the Connect® Library, you will find the following Instructor
Resources:
▪ Instructor’s Manual
▪ PowerPoint Presentations (Accessible)
▪ Test Bank
▪ Author Newsletter Blog
▪ Video Library
▪ Connect Content Matrix
Instructor’s Manual
This Instructor’s Manual is posted by chapter. Within each section of the IM you will find an assortment of feature
summaries, examples, exercises, and Connect® Integration assignments intended to enhance your students’ learning
and engagement.
Chapter 5 - Analyzing the Marketing Environment M: Marketing 6th
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
2
PowerPoint Presentations
A set of ADA-accessible PowerPoints is available with each chapter and covers:
▪ Chapter Learning Objectives
▪ Key examples
▪ Key exhibits
▪ Key concepts and frameworks
▪ Progress checks
▪ Glossary terms
Some slides include teaching notes to guide your discussion of the content that appears on each slide.
Test Bank
Test Bank questions are posted by chapter. You will find a variety of question types within the test bank such as
Matching, Ranking, Multiple Choice, Select-All-That-Apply, True/False, Short Answer, and Essay to test student
mastery across Bloom’s Taxonomy (i.e., Understand, Apply, and Analyze). Due to the evolving needs around
generating high-quality print test experiences, McGraw-Hill Education provides a free copy of the industry-leading
test generation software TestGen® to users (more details can be found within the Instructor Resources tab under
“Test Bank”). Furthermore, due to its limitations to function with the latest browsers and operating systems,
McGraw-Hill Education has discontinued EZ-Test Online. Some of the robust new features present in TestGen®,
include:
▪ Cross-platform software compatibility with Windows and Mac
▪ Multiple LMS export formats, including Blackboard, Moodle, Desire2Learn, and Sakai
▪ Highly customizable formatting and editing option
Video Library
The Video Library provides links to all the assignable videos in Connect®, as well as legacy videos that are no
longer available as assignments, but that remain available as an additional resource. These videos can be directly
streamed from within the library that is located in the Instructor’s Resource tab. Accompanying each video is a brief
video guide that summarizes the key concepts of the video.
Chapter 5 - Analyzing the Marketing Environment M: Marketing 6th
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
3
Connect Content Matrix
The Connect Content Matrix provides a brief overview of all the application exercises available in the course. It
lists the Learning Objectives, topic tags, Bloom’s levels, and difficulty levels associated with each exercise.
Connect®, McGraw-Hill’s online assignment and assessment system, offers a wealth of content for both students
and instructors. Assignable activities include the following:
USING SMARTBOOK® TO ENHANCE STUDENTS’
PERFORMANCE
The LearnSmart®-powered SmartBook® is assignable through Connect. One of the first fully adaptive and
individualized study tools designed for students, it creates for them a personalized learning experience, giving them
the opportunity to practice and challenge their understanding of core marketing concepts. The reporting tools within
SmartBook® show where students are struggling to understand specific concepts.
Typically, SmartBook® is assigned by module (chapter), and you can set which learning objectives to cover as well
as the number of probes the student will see for each assignment. You can also set the number of points a
SmartBook® module is worth in the course. Usually, applying a minimal number of points for completion of each
module is enough to encourage students to read the chapter. Many instructors assign these modules to be completed
before the class or online session.
SmartBook® provides several diagnostic tools for you to gauge which concepts your students struggle to understand.
Below is the set of adaptive assignment reports available in SmartBook®:
▪ Progress Overview: View student progress broken down by module
▪ Student Details: View student progress details plus completion level breakdown for each module
▪ Module Details: View information on how your class performed on each section of their assigned modules
▪ Practice Quiz: This gives you a quick overview of the quizzes results for your students
▪ Missed Questions
▪ Metacognitive Skills
The Module Details report shows you the results for the students in the class overall. These details reveal where in
the chapters students might be struggling. The module gives the chapter section, average time spent, average
questions per student correct/total, and the percentage of correctness (based in number of assigned items).
Information about the most challenging sections for students can help you refine the focus of the next face-to-face,
hybrid, or online session.
The Metacognitive Skills report captures students’ confidence in their competency of the materials. Below you will
find a recreation of the Metacognitive Skills report. In it, you can see that the second student is confident and mostly
Chapter 5 - Analyzing the Marketing Environment M: Marketing 6th
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
4
correct (see the 91% in the Correct and Aware column) while the first student “doesn’t know what she doesn’t
know” (see the 39% in the Incorrect and Unaware column).
STUDENT
CORRECT
and
AWARE
CORRECT and
UNAWARE
INCORRECT
and
AWARE
INCORRECT and
UNAWARE
Student 1
61%
0%
0%
39%
Student 2
91%
0%
3%
5%
Student 3
81%
0%
0%
19%
Student 4
83%
0%
0%
17%
Student 5
76%
0%
3%
21%
Student 6
66%
0%
9%
25%
Student 7
77%
0%
3%
12%
Student 8
91%
0%
2%
7%
Student 9
93%
0%
2%
5%
Student 10
70%
0%
6%%
25%
APPLICATION EXERCISES, QUIZZES, AND TEST BANK
Book-level Resources
Application Exercises require students to apply key concepts to close the knowing and doing gap; they provide
instant feedback for the student and progress tracking for the instructor. Before getting into chapter-level
assignments, let’s first look at the book-level assignments available.
Three exercise types are available for instructors to assign beyond the chapter materials. These are 1) Marketing
Plan Prep Exercises, 2) Marketing Analytics Exercises, and 3) Marketing Mini Simulation.
1) Marketing Plan Prep exercises use guided activities and examples to help students understand and
differentiate the various elements of a marketing plan.
2) Marketing Analytics exercises are data analytics activities that challenge students to make decisions using
3) Marketing Mini Simulation helps students apply and understand the interconnections of elements in the
marketing mix by having them take on the role of Marketing Manager for a backpack manufacturing
company. The simulation can be assigned by topic or in its entirety.
Chapter-level Resources
Chapter-level Application Exercises are built around chapter learning objectives, so you can choose which ones to
assign based on your focus for each specific chapter. Several types of Application Exercises are available in each
chapter. These are 1) iSeeit! Animated Video Cases, 2) Case Analyses, 3) Video Cases, and 4) Click-and-Drag
exercises.
1) The iSeeit! Video series comprises short, contemporary animated videos that provide engaging
introductions to key course concepts. These are perfect for launching lectures and assigning as either pre-
Chapter 5 - Analyzing the Marketing Environment M: Marketing 6th
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
5
or post-lecture activities. Each animation is accompanied by three to four multiple-choice questions to
check student attention and comprehension.
2) Case Analyses and Video Cases each feature real-world firms and industries different than those discussed
3) Click-and-Drag exercises help students actively demonstrate their understanding of the associated learning
objectives. Some require students to match examples to concepts, to place series of steps in the correct
sequence, or to group examples together under their correct categories.
Application Exercises can be assigned as preparatory exercises due before class (this is especially good for flipped
classrooms), or after class as concept comprehension checks. Consider assigning two or three Application Exercises
per chapter.
Applications Exercises will generally be assigned as homework or practice as part of the overall class grade. A
general rule of thumb would be to make application exercises worth 5 to 10 points each, since these require more
time and thought than a test bank question might.
To find the Applications in Connect®, go to “Add Assignment” and select “Question Bank.” Within this question
bank will find a drop-down menu of all the book-level assignments and chapter-level assignments. You can then
select the ones you wish to assign.
Chapter-level quizzes and full chapter test banks are also found in the Question Bank’s drop-down menu. Apply a
relatively low value to each question—for example, 1 or 2 points each—since numerous questions are typically
assigned for each chapter. You can decide when to surface the feedback to students. Selecting to display feedback
after the assignment due date helps to prevent cheating; that is, it keeps students from sharing the correct answers
with other students while the questions are still open and available. For this reason, it is suggested that no feedback
to quizzes and test bank exams be made available until after the assignment is due.
ASSIGNING EXERCISES AND GRADING POLICIES: BEST
PRACTICES
To fully utilize the power of the digital components, it is recommended that you assign the SmartBook® reading and
adaptive learning probes before class meets. Application Exercises can be completed either before or after class; if
they are completed before class, they can sometimes serve as good springboards for class discussions. The chapter
quiz makes a good check on comprehension of the material and may work best if assigned after each class period.
The test bank serves as a good resource for building mid-term or final exams.
More detailed information on SmartBook® and Connect® is available through several resources at McGraw-Hill. A
good starting point is your local Learning Technology Representative, who can be found here:
http://www.mheducation.com/highered/platforms/connect/features-educators.html
Connect® gives instructors a wide array of flexibility in making assignments and creating grading policies.
Instructors may choose to:
• assign as many assignments as appropriate given the level and time commitment expected for the class,
• determine point values for each question/application that works within the total course percentages,
• make available multiple attempts per assignment with options of accepting the highest score or averaging all the
Chapter 5 - Analyzing the Marketing Environment M: Marketing 6th
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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6
attempts together (several attempts are particularly good for homework assignments),
• deduct points for late assignment submissions (percentage deduction per hour/day/week/etc.) or create hard
deadlines thus accepting no late submissions,
• show feedback on application/questions immediately upon submission or at the time the assignment is due for
the whole class, create new assignments or questions from scratch, or edited versions from a variety of provided
resources.
Throughout the IM for each chapter, we integrate materials from the PowerPoint slides and provide summaries for
each of the Connect® Application Exercises at the end of each chapter. These summaries are intended to give you a
sense of the learning goal behind each exercise. We hope this integration of resources will help you to convey core
Chapter 5 - Analyzing the Marketing Environment M: Marketing 6th
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Chapter 5
Analyzing the Marketing Environment
Tools for Instructors
• Chapter Overview
• Brief Chapter Outline
• Learning Objectives
• Extended Chapter Outline
• PowerPoint Slides
• Additional Resources
• Connect Application Exercises
Chapter Overview
This chapter discusses the marketing environment, which includes the immediate environment and the
macroenvironment, with consumers always at the center.
Brief Chapter Outline
A Marketing Environment Analysis Framework
The Immediate Environment
Macroenvironmental Factors
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
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
Chapter 5 - Analyzing the Marketing Environment M: Marketing 6th
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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9
B. Demographics (PPT 5-12)
1. Generational Cohorts (PPT 5-13)
Social & Mobile Marketing 5.2: What Can Pokémon Go Do for Marketers? details how
2. Income (PPT 5-14)
4. Gender (PPT 5-16)
1. Health and Wellness Concerns (PPT 5-19)
2. Greener Consumers (PPT 5-20)
Ethical & Societal Dilemma 5.1: Even Paris Is Going Electric: The Trends Leading to Shifting
Norms in the Auto Industry! describes how carmakers might benefit from the demand for greener
products, if they can shift their production capabilities to cleaner engines. Do any students own “green”
cars? Would students be willing to pay more for a car that was environmentally friendly?
3. Privacy Concerns (PPT 5-21)
D. Technological Advances (PPT 5-22)
Marketing Analytics 5.1: When the Best Is Good Enough: Netflix’s Stellar Predictive Analytics
discusses how Netflix relies on its advanced technological capabilities not just to suggest which movies
we should watch but also to develop new content that it is confident we will like. Do students who use
Netflix agree that their predictive analytics are “the best”? How do they think these analytics impact their
Netflix habits?
Adding Value 5.1: Are We There Yet? Google’s Moves to Get Us Closer to Driverless Cars details
Google’s efforts to get self-driving cars on the road. What are the pros and cons of an automobile
manufacture like Ford partnering with Google with launch a self-driving car to the public?
E. Economic Situation (PPT 5-23)
F. Political/Regulatory Environment (PPT 5-24)
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.
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3. What are some important social trends shaping consumer values and shopping behavior?
Additional Resources
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.
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).
Slide 13 in the Instructor PowerPoints for this chapter contains a link to a video on Millennials and the
experience economy (https://www.youtube.com/watch?feature=player_embedded&v=YFN2vcBuGyQ).
What do students think of the idea that Millennials spend their money on “experiences”? How is this
different from previous generations?
Slide 21 in the Instructor PowerPoints for this chapter contains a link to a video on Facebook’s mobile
privacy features (https://www.youtube.com/watch?v=5CJg3lq7MHc). How concerned are students about
their privacy online? Do they think Facebook does enough to protect the privacy of its users?
Chapter 5 - Analyzing the Marketing Environment M: Marketing 6th
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Connect Application Exercises
This section summarizes each Application Exercise available with this chapter. Each summary comprises
an introduction to the exercise, concept review, and follow-up activity. Associated details related to the
learning objectives, activity type, AASCB category, and difficulty levels are also included. These
summaries are intended to guide your course planning; perhaps you want to assign these exercises as
homework or practice, before or after class. For best practices on how and when to assign these
exercises, see the IM Implementation Guide at the beginning of this chapter.
Activity
Type
Learning Objectives 05-
01
02
03
04
The Marketing Mix: Sporting Goods and Services
Click & Drag
X
X
Dole Analyzes the Environment
Video Case
X
X
McDonald’s: Analyzing the Marketing Environment
Video Case
X
X
Ford: A New Car for a New Generation
Video Case
X
X
X
Seventh Generation: Responding to the Marketing
Environment
Case Analysis
X
X
X
adidas: Boost Technology and the Marketing
Environment
Video Case
X
X
X
iSeeIt Video Case: Macroenvironmental Scanning
Video Case
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.
Chapter 5 - Analyzing the Marketing Environment M: Marketing 6th
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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.
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▪ 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.
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14
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)?
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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.
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16
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.
