ADM2320 Chapter 3 Analyzing the Market Environment
The first factor
that affects the
consumer is the firm
marketing firms focus
on their efforts on
needs that match their
Greater competition may mean more choices for consumers, which
influences their buying decisions.
Identify and analyze direct and indirect competitors
Know strengths & weaknesses
Competitive Intelligence (CI) used to collect and synthesize info
• Firms are part of alliances
• Align with competitors, suppliers, etc.
• Just in Time Delivery Systems (JIT)
Macroenvironmental Factors Culture
Culture: The shared meanings, beliefs, morals, values, and customs of a
group of people.
Country culture: Entails easy-to-spot visible nuances that are particular to a
country, such as dress, symbols, ceremonies, language, colors, and food
preferences, and more subtle aspects, which are trickier to identify.
Demographics: Characteristics of human populations and segments
especially those used to identify consumer markets, such as age, gender,
income, race, ethnicity, and education.
Provides an easily understood snapshot of the typical consumer in a specific
o Generational cohorts: A group of people of the same generation –
typically have similar purchase behaviors because they have shared
experiences and are in the same stage of life.
o Tweens: Generational cohort of people who are not quite teenagers but
are not young children either.