Chapter 2 – Marketing Environment
Marketing Environmental Scan: A process of continually acquiring information on events occurring
outside the organization to identify trends, opportunities, and threats to a business.
Study of populations
Aging population: The increase in the average age of the population
Diverse Generations: 3 main generational groups
Baby Boomers, Generation X, Generation Y.
1946-1964: Baby Boomers: 60% of expenditures. Keen interest in Health, self-image and retirement.
1966-1974: Generation X: Not brand loyal, better educated. They are less prone to materialism and
extravagance than the baby boomers.
1975-1995: Generation Y: Music, Video games, sports, computer purchases
Ethnic Diversity: The diversity creates a lot of opportunities for the marketers. Different ethnicities have
different habits. [Indian channels] 7
Non-Traditional Families: Families are not traditional. Companies might have to provide engagement
bracelets and all for non-traditional couples.
World Markets: China and India are growing. It is an opportunity for marketers to expand.
Socio Cultural Forces
Cultural values, ideas, and attitudes that are learned and shared among a group of people.
Health and Fitness
Environmental Awareness (Global Warming)
Changing Gender Roles (Women working. Dual Income for families. Products to help busy families)
Inflation: Period when the cost to produce and buy products and servers gets higher as the prices rise.
Consumer purchasing power decreases
Recession: Time of slow economic activity with two consecutive periods of negative growth. Production levels decline, unemployment levels rise, and many consumers have less money to spend. At
this time consumers spend on life’s necessities.
Microeconomic forces directly refer to the supply and demand of goods and services and how this