MK 201 Chapter Notes - Chapter 3: Disposable And Discretionary Income, Alaska Natives, Baby Boomers
Marketig Chapter
• Changes in the marketing environment are a source of opportunities and threats to be
managed
• Environmental scanning: The process of acquiring information on events outside the
organization to identify and interpret potential threats
• 5 Main Environmental Threats: These trends affect consumers and the business and
organizations that serve them
o Social
o Economics
o Technological
o Competitive
o Regulatory threats
A) Social Forces
Social Forces: Demographic shifts and cultural changes. Changes in these forces can have a
dramatic impact on the marketing strategy
1) Demographics: description of a population according to characteristics such as age,
gender, ethnicity, income and occupation
• 3 Key Demographics
o population profile
o general cohorts
o racial and ethic diversity
Population at a Glance
• 6.9 billion people in the world-> epeted to gro to 9. illio populatio
eplosio
• primary increases are in developing countries
o Africa, Asia, Latin America
o India/ China highest populations expected
• Shift in age structure of the population-> the number of people over 60 is expected to
triple by 2050, reach 2 billion
• Trends: population is becoming larger, older, and more diverse
• U.S. 308 million people-> 2030: 373 million people
Generational Cohorts
• Baby Boomers
o 1946- 1964
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o 76 million in America
o they are growing older and by 2030 they will all be 65 or older
• Generation X
o 1965- 1976
o 15% of the population
o ko as the a ust: eause the uer of hildre or eah ear as
declining
o this generation are self-reliant, supportive of racial and ethnic diversity, and
better educated than previous generation, largest segment of business travelers
• Geeratio Y or Milleials
o 1977-1994
o 72 million Americans
o eho oo: period of ireasig irths which resulted from baby boomers
having children
o This generation influences music, sports, computers, video games, and all forms
of communication networks
Racial and Ethnic Diversity
• U.S. population has a changing demographic composition
• 1/3 are: Black, Native American, Native Alaskan, Asian, Native Hawaiian, or Pacific
Islander
• This has an economic impact
• Multicultural Marketing: programs, which are combinations of the marketing mix that
reflect the unique aptitudes, ancestry, communication preferences, and lifestyles of
different races and ethnic groups
2) Culture
Culture: The set of values, ideas, and aptitudes that is learned and charred among the members
of a group. Elements of cultures influence buying patterns
• Values that may differ over time and between countries
o Ex. U.S. Values
▪ 1970: work, efficiency, and material comfort
▪ Today: personal control, continuous change, equality, individualism,
action
o In contrast there are different values outside of the United States:
▪ Belief in fate, importance of tradition, group welfare, acceptance of
birthright
o Shared World-wide Values
▪ Global sustainability, and preservation of the environment
▪ Consumers may be drawn to companies that engage in social action
• Companies change their business practices to respond to trends in consumer values
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