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Chapter 1
Overview of Marketing
Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
Learning Objectives
Learning Objective 1.1 Define the role of
marketing.
Learning Objective 1.2 Describe the evolution of
marketing over time.
Learning Objective 1.3 Describe how marketers
create value for a product or service.
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Water Bottles
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CD_works27/Shutterstock
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What Is Marketing?
Marketing is the activity, set of institutions, and processes
for creating, capturing, communicating, delivering, and
exchanging offerings that have value for customers, clients,
partners, and society at large.
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Alejandro Rivera/Getty Images
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Exhibit 1.1 Core Aspects of Marketing
Access the text alternative for slide images.
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Marketing Is about Satisfying Customer
Needs and Wants
How does Dove offer value?
‡ Dove added the Dove
Men+Care line and expanded
into products for babies.
‡ In advertising to male
consumers, Dove seeks to
acknowledge and recognize
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so it can link these
communications to its baby care
products too.
‡ Dove seeks to acknowledge
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caregiving roles, so it can link
these communications to its
baby care products.
© McGraw Hill LLC
Dove seeks to acknowledge and recognize
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these communications to its baby care
products.
Source: Unilever
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Exhibit 1.2: Exchange: The Underpinning of
Seller-Buyer Relationships
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Exhibit 1.3: The Marketing Mix
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Source: McGraw-Hill Global Education Holdings, LLC
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Marketing Creates Value through Product,
Price, Place, and Promotion Decisions
The Marketing Mix:
The controllable set
of decisions or
activities that the firm
uses to respond to
the wants of its target
markets.
© McGraw Hill LLC
‡ Product.
‡ Price.
‡ Promotion.
‡ Place.
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Product: Creating Value
The fundamental purpose of
marketing is to create value
by developing a variety of
offerings, including goods,
services, and ideas, to
satisfy customer needs.
‡ Goods.
‡ Services.
‡ Ideas.
Marketing creates value by promoting
ideas, such as bicycle safety.
© McGraw Hill LLC
Source: Street Smart, a public safety campaign of Metro, the District of Columbia, Maryland, and Virginia.
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Price: Capturing Value
Price is everything a
buyer gives up (money,
time, energy) in
exchange for the
product or service.
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putting all your baggage under your seat, flying on
low-cost carriers like Frontier is a good value.
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Kateryna Kukota/Alamy Stock Photo
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Place: Delivering the Value Proposition
Place represents all the
marketing processes
necessary to get the product to
the right customer when that
customer wants it.
Place more commonly deals
specifically with retailing and
marketing channel
management, also known as
supply chain management.
Hertz creates customer value by using biometrics to
create a function that recognizes loyal customers
using facial, iris, or fingerprint scans.
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Jeff Martin/AP Images
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Promotion: Communicating the Value
Proposition
Promotion is
communication by a
marketer that informs,
persuades, and reminds
potential buyers about a
product or service to
influence their buying
decisions and elicit a
response.
Babar books wanted to celebrate the 80th anniversary of the series.
It initiated a $100,000 campaign, working in collaboration with toy
stores and bookstores.
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BananaStock/Alamy Images
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Exhibit 1.4: Marketing Can Be Performed by
Individuals and by Organizations
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Marketing Impacts Various Stakeholders
Customers.
Supply Chain Partners.
Employees.
Industry.
Society.
The Great American Milk Drive, run in conjunction with
Feeding America, seeks to ensure that local food banks are
sufficiently stocked with nutritious, frequently requested items.
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PROGRESS CHECK (1 of 3)
1. What is the definition of marketing?
2. Marketing is about satisfying
blank.
blank and
3. What are the four components of the marketing
mix?
4. Who can perform marketing?
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Exhibit 1.5 Marketing Evolution:
Production, Sales, Marketing and Value
Photos (left to right): Ryan McVay/Photodisc/Getty Images; Clement Mok/Photodisc/Getty Images; Lawrence Manning/Corbis/Getty Images; Ryan McVay/Photodisc/Getty Images;
Mark Dierker/McGraw-Hill
Access the text alternative for slide images.
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Value-Based Marketing
A Lipstick Option for Those Who Dream of a
Hermès Bag
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© Justin Sullivan/Getty Images
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Value-Based Marketing Era
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PROGRESS CHECK (2 of 3)
1. What are the various eras of marketing?
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How Does Marketing Create Value and
How Do Firms Become More Value Driven?
Build relationships with customers.
Gather and analyze information.
Balance benefits and costs.
Connect with customers using social and
mobile media.
Access the text alternative for slide images.
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Value Stems From Four Main Activities
Adding Value
Using Marketing Analytics
Embracing Social and Mobile Marketing
Ethical and Societal Dilemma: Engaging in
Conscious Marketing
Access the text alternative for slide images.
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Marketing Analytics
Companies collect massive amounts of data about
how, when, why, where, and what people buy.
Kroger collects massive amounts of data about how, when, why, where, and what people buy and
then analyzes those data to better serve its customers.
© McGraw Hill LLC
© Daniel Acker/Bloomberg/Getty Images
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Connecting With Customers Using Social
and Mobile Marketing
Social media ad
spending is growing,
increasing by 32 percent
in 2018 alone.
3.26 billion people link
to some social media
sites through their
mobile devices.
Make travel arrangements online either
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check-in is a breeze.
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Erik Isakson/Blend Images/Getty Images
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Resolving Ethical and Societal Dilemmas
Conscious Marketing
Socially Responsible
Firms
Making socially
responsible activities an
integral component of
corporate strategies.
Too Good To Go is a UK-based app that has
partnered with 1,381 food stores to match
hungry customers to restaurants and stores
with surplus food that would otherwise go to
waste.
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Guillaume Payen/SOPA Images/LightRocket/Getty Images
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PROGRESS CHECK (3 of 3)
1. Does providing a good value mean selling at a
low price?
2. How are marketers connecting with customers
through social and mobile media?
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Because learning changes everything.®
Chapter 3
Digital Marketing: Online,
Social, and Mobile
Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
Learning Objectives
Learning Objective 3.1 Describe the 4E framework of digital
marketing.
Learning Objective 3.2 Examine the seven critical elements of online
marketing.
Learning Objective 3.3 Understand the drivers of social media
engagement.
Learning Objective 3.4 Understand various motivations for using
mobile applications.
Learning Objective 3.5 Recognize and understand the components of
a digital marketing strategy.
Learning Objective 3.6 Understand the central factors in picking an
influencer partner.
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Hilton
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Regien Paassen/Shutterstock
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Exhibit 3.1: The 4E Framework for Digital
Marketing
Access the text alternative for slide images.
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Excite the Customer
Offer must be relevant
to its targeted customer.
Relevancy can be
achieved by providing
personalized offers.
Marketers use many kinds of digital offers to excite customers,
and to excite them, an offer must be relevant to its targeted
customer. Lush Cosmetics encourages customers to post
pictures of themselves using its products on social media by
promising that if they use #LushLife, they might find
themselves featured on its official page.
Source: Lush Cosmetics/Instagram
© McGraw Hill LLC
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Educate the Customer
Golden opportunity to
educate about the
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proposition and
communicate offered
benefits.
When marketing
ideas, the goal is to
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well-being, along with
selling the underlying
concept.
© McGraw Hill LLC
To educate women about how to perform breast self-exams, the #KnowYourLemons
campaign posted pictures of a dozen lemons to teach people about 12 shapes and lumps
they should be looking for when they themselves for cancer each month.
Source: Worldwide Breast Cancer
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Experience the Product or Service
Provide vivid information
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services.
Simulate real experiences.
Sephora maintains its own YouTube channel with dedicated videos that
demonstrate how to use specific products like bright pink eyeshadow.
© McGraw Hill LLC
Source: Sephora USA, Inc.
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Engage the Customer
Action, loyalty, and
commitment.
Positively engaged
consumers lead to more
profitability.
Engagement can also
backfire.
,.($ HQJDJHV FXVWRPHUV ZLWK LWV ³3ODFH´ DSS WKDW HQDEOHV
customers to select an item from its catalog and then, by
using the camera within the app, visualize the item in their
home or office.
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Source: IKEA Systems B.V.
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PROGRESS CHECK (1 of 6)
1. What are the 4 Es?
2. What social media elements work best for each
of the 4 Es?
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EXHIBIT 3.2: The 7C Online Marketing Framework
Access the text alternative for slide images.
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1. Core Goals
The basis of any
marketing strategy is its
goals.
Determine specific
goals.
Align the goals with the
target market and align
the 7Cs with the goals.
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Hasbro has embraced online marketing to reflect its core goals. To
introduce this new brand called Hanazuki, it developed an entire
series that viewers can watch on YouTube. The Hanazuki page is
filled with animation, movement, and bright colors, encouraging
visitors to take their time exploring the different characters, watching
videos, downloading apps, and perhaps shopping too.
Source: Hasbro, Inc.
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2. Context Elements
Design.
Navigation.
Must be in alignment
with the target market.
%HFDXVH :DOPDUW¶V FRUH JRDO LV WR HQFRXUDJH SXUFKDVHV LWV FRPPHUFHoriented website features a simple look and feel. Looking closely at the
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adult target market. It is more traditionally focused on selling Hanazuki
merchandise than Hasbro, Inc. with little concern for the brand itself.
© McGraw Hill LLC
Source: Walmart Stores, Inc.
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3. Content
Monitor to ensure
relevancy.
Devise appropriate
keywords to improve
organic search.
Implement SEM and
paid search.
The content of these messages must resonate with its target market, but
need not always showcase merchandise or services, as in the Facebook
post from the jewelry firm, Alex and Ani. The company is not showcasing its
jewelry per se, but rather providing a motivational quote that resonates with
young females, its primary target market.
© McGraw Hill LLC
Source: Alex and Ani, LLC
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4. Community
Allow customers to
interact.
Use corporate and
professional blogs.
Engage in
Crowdsourcing.
Betabrand uses crowdsourcing by having its customers submit clothing
design ideas and feedback on items before they are manufactured.
© McGraw Hill LLC
Source: Betabrand
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5. Communication
Clear, helpful, meaningful content enables effective
communication.
Enables interacting with, engaging, and educating
site visitors.
Provide a mechanism for customers to
communicate with the firm.
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6. Commerce
Desktop usage is greater,
and conversion rates
higher, for online
purchases.
The most loyal customers
use multiple channels.
Customers want a range of
online purchase options.
7KURXJK 6HSKRUD¶V PRELOH DSS %HDXW ,QVLGHU DFFRXQW KROGHUV FDQ FKHFN WKHLU
loyalty points, access past purchase behavior, receive personalized
recommendations, scan items while in stores, and much more.
© McGraw Hill LLC
Source: Sephora USA, Inc.
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7. Connection
Engage customers and
provide a call to action.
Allow customers to
interact with the firm
continuously.
Enable positive
engagement.
A good website or blog engages customers and provides them with a
call to action. Warby Parker connects customers with four call-to-action
buttons inviting visitors to: get started, order frames to try on at home,
take a quiz, and shop online.
© McGraw Hill LLC
Source: Warby Parker
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PROGRESS CHECK (2 of 6)
1. Describe the components of the 7C online
marketing framework.
2. Differentiate between organic and paid search.
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Exhibit 3.3:
The Wheel of Social Media Engagement
© McGraw Hill LLC
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The Information Effect
Outcome in which relevant
information is spread by
firms or individuals to other
members of the social
network.
© McGraw Hill LLC
BigTunaOnline/Shutterstock
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The Connected Effect
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other people.
© McGraw Hill LLC
Source: William Perugini/Shutterstock
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The Network Effect
Outcome in which every post is spread instantaneously
across social media.
© McGraw Hill LLC
Source: Shutterstock/Metamorworks
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The Dynamic Effect
Information is exchanged to network participants through
back-and-forth communications.
Examines how people flow in and out of networked
communities as their interests change.
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Rawpixel.com/Shutterstock
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The Timeliness Effect
Firms must engage with the customer at the right
place and time.
Using beacon technology, Coca-Cola is able to engage customers in
a timely manner by offering moviegoers a free Coke at the moment
they walk into a movie theater.
© McGraw Hill LLC
Source: SeongJoon Cho/Bloomberg/Getty Images
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PROGRESS CHECK (3 of 6)
1. What are the five drivers of social media
engagement described in the Wheel of Social
Media Engagement?
© McGraw Hill LLC
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Going Mobile and Social
Exhibit 3.4: Seven Primary Motivations for Mobile App Usage
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Need to Socialize
Need to Shop
(showrooming)
Need to Accomplish
Need to Prepare
Need to Discover
Need to Self-Express
With more than 3 billion downloads, Candy Crush Saga clearly fulfills for
PDQ SHRSOH DQ LPSRUWDQW QHHG IRU XQSURGXFWLYH ³PH WLPH ´
Access the text alternative for slide images.
© McGraw Hill LLC
Source: Alexat25/Shutterstock
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App Pricing Models
© McGraw Hill LLC
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PROGRESS CHECK (4 of 6)
1. What are the seven types of customer
motivations for using mobile apps?
2. What are the four options for pricing mobile
apps?
3. What are some of the most popular types of
mobile applications?
© McGraw Hill LLC
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How Do Firms Engage Their Customers?
Exhibit 3.4: Social Media Engagement Process
Access the text alternative for slide images.
© McGraw Hill LLC
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Listen
Listening helps
determine digital
marketing objectives and
strategies.
Sentimental analysis
allows marketers to
analyze and determine
consumers attitudes and
preferences.
© McGraw Hill LLC
Other companies perform their own analyses, effectively leveraging their
existing capacities for listening to customers. Zappos is known for its
remarkable customer service and attracts plenty of buzz about its
offerings. It takes the information it gathers from listening to customers to
design strategies that emphasize what they like most.
Source: Zappos.com, Inc.
31
Analyze
© McGraw Hill LLC
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Exhibit 3.5: How to Do a Digital Marketing
Campaign
Access the text alternative for slide images.
© McGraw Hill LLC
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Do
Develop and implement
campaigns using social
media.
EXHIBIT 3.6 Example Facebook Targeting Choices
Effective implementation
based on social and
mobile media activity.
© McGraw Hill LLC
Source: Facebook
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PROGRESS CHECK (5 of 6)
1. What are the components of a digital marketing
strategy?
© McGraw Hill LLC
35
Influencer Marketing
A marketing strategy that uses
opinion leaders, popular on social
media, to drive marketing
messages to a targeted audience.
Firms hire (or encourage) these
well-known names to promote
brand messages to their networks
of followers.
Big-time influencers like
Ariana Grande have millions
of followers and can
command almost a mil-lion
dollars for a sponsored post.
© McGraw Hill LLC
Source: Lev Radin/Shutterstock
36
Assessing the Efficacy of Influencers
Relevance
Reach
Response
Return
Influencers like Selena Gomez can reach millions of potential
customers for Coca-Cola with an Instagram post like this one, which
depicts her drinking a Coke with the lyrics from one of her songs on
the bottle.
© McGraw Hill LLC
Source: Selena Gomez/Instagram
37
Exhibit 3.8: Influencer Marketing Chain of
Events
Access the text alternative for slide images.
© McGraw Hill LLC
38
Exhibit 3.9: Types of Influencers
Type of Influencer
Definition
Example
Key Channels
Average Cost per Post
Celebrity
Large following, widely
recognized
Social media, print,
television
$3,000±$500,000
Micro
Modest following, niche
interest
Posts on social media
sites, shared promo codes
$80±$500
Blog
Writes for a blog and has
attracted readers and
subscribers with that
content
Reviews on blog, guest
blog posts
$400±$5,500
Social media
Popular on social platforms
(Instagram, YouTube,
Twitter) among followers in
specific target audiences
Key opinion leader or
expert in a specific field
Nespresso relies heavily on
George Clooney to promote its
products in marketing across
platforms, leveraging his cool
image to enhance its appeal but
also his reputation for
environmental sustainability to
promote its own efforts along these
lines
NUX Active (athletic clothing
brand) worked with Sydney
Loveleigh Nelson, whose health
and fitness posts have earned her
about 21,000 followers
The FaceGym spa sponsored a
blog post by lifestyle blogger
Hannah Bronfman to provide
information about its services and
treatments
LaCroix worked with nutritionist
Joy Bauer to create a Twitter post
of a recipe she had created, using
the product
BoxyCharm, a subscription beauty
box service, worked with Kandee
Johnson, a professional makeup
artist, to make videos that
explained each product included in
a box
Pictures posted with the
product, shared hashtags,
videos featuring the
product
Social media, tutorials,
reviews, blog posts,
sponsored print articles,
articles in academic
journals
$100±$500,000
Specialized
$500±$5,000
6RXUFH .ULVWHQ %DNHU ³:KDW :LOO ,QIOXHQFHU 0DUNHWLQJ /RRN /LNH LQ ” ´ +XE6SRW ‘HFHPEHU KWWSV EORJ KXEVSRW Fom/marketing/how-to-work-with-influencers
© McGraw Hill LLC
39
Ethical Considerations for Influencer Marketing
Fraudulent Influence
‡ The incentive to boost follower numbers accordingly has led to
various unethical behaviors.
Disclosing Advertising
‡ Intent if an influencer is being paid to promote a product, that
information should be clear in the post.
Sincerity
‡ Effective influence attempts require followers to believe that the
influencer actually likes and appreciates the product.
© McGraw Hill LLC
40
PROGRESS CHECK (6 of 6)
1. How should firms choose and assess the efficacy
of influencers?
© McGraw Hill LLC
41
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Because learning changes everything.®
Chapter 8
Global Marketing
Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
Learning Objectives
Learning Objective 8.1 Describe the components of a
country market assessment.
Learning Objective 8.2 Understand the marketing
opportunities in BRIC countries.
Learning Objective 8.3 Identify the various market entry
strategies.
Learning Objective 8.4 Highlight the similarities and
differences between a domestic marketing strategy
and a global marketing strategy.
© McGraw Hill LLC
3
Globalization
The processes by
which goods,
services, capital,
people, information,
and ideas flow
across national
borders.
© McGraw Hill LLC
deepblue4you/Getty Images
4
Assessing Global Markets
EXHIBIT 8.1 Components of a Country Market Assessment
Access the text alternative for slide images.
© McGraw Hill LLC
5
Evaluating the General Economic Environment
Using Economic Metrics
© McGraw Hill LLC
Trade deficit or
surplus
Gross domestic
product (GDP)
Gross national
income (GNI)
Purchasing
power parity
(PPP)
6
Evaluating Market Size
and Population Growth Rate
Population growth dispersal: strong demand
in BRIC (Brazil, Russia, India, China) nations
Distribution of the population within a
particular region: rural vs. urban
© McGraw Hill LLC
Shutterstock / Pablo Scapinachis
7
Exhibit 8.2 Big Mac Index
Source: The Economist ³7KH %LJ 0DF ,QGH[ ´ -XO
www.economist.com/content/big-mac-index.
Access the text alternative for slide images.
© McGraw Hill LLC
McGraw-Hill Global Education Holdings, LLC
8
Evaluating Real Income
Firms can make
adjustments to an existing
product or change the price
to meet the unique needs of
a particular country market.
For the Chinese market,
Haier sells washing
machines that can wash
both clothes and vegetables.
© McGraw Hill LLC
Shutterstock/Africa Studio
9
Analyzing Infrastructure and
Technological Capabilities
Marketers are especially concerned with four
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‡ Transportation.
‡ Distribution Channels.
‡ Communications.
‡ Commerce.
© McGraw Hill LLC
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Analyzing Governmental Actions
© McGraw Hill LLC
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Tariffs and Quotas
Tariffs
Quotas
‡ Tax on Imported
good.
‡ Minimum or
maximum limit.
‡ Artificially raises
prices.
‡ Reduces availability
of imported goods.
‡ Lowers demand.
Both benefit domestically made products because
they reduce foreign competition.
© McGraw Hill LLC
12
Exchange Control
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exchange rate: the measure of how much
one currency is worth in relation to
another.
In recent years, the value of the U.S.
dollar has changed significantly
compared with other important world
currencies.
Prices are nearly always lower in the
country of origin because there are no
customs or import duties to pay, and
international transportation expenses are
less than domestic ones.
© McGraw Hill LLC
© Sean Pavone / Alamy Stock Photo
13
Trade Agreements
A trade agreement is an intergovernmental
agreement designed to manage and promote trade
activities for a specific region, and a trading bloc
consists of those countries that have signed a
particular trade agreement.
‡ There have been recent challenges to longestablished regional trade agreements (RTAs),
‡ Yet RTAs account for more than half of
international trade.
© McGraw Hill LLC
Source: Information about EU members is from http://europa.eu/about-eu/countries/./index_en.htm
14
Analyzing Sociocultural Factors
Understanding another culture is crucial to the
success of a global marketing initiative.
Exists on two levels:
‡ Visible artifacts.
‡ Underlying values.
Participants in a parade during the 23rd International
Mariachi & Charros festival in Guadalajara Mexico
© McGraw Hill LLC
Kobby Dagan/Shutterstock
15
Ethical & Societal Dilemma 8.2: Dolce &
Gabbana Faces Public Scrutiny in China
Dolce & Gabbana learned a tough lesson about the
importance of embracing and promoting a local
DXGLHQFH¶V FXOWXUH LQ D SRVLWLYH ZD
An international fashion crisis ensued when designer Dolce & Gabbana released videos
VDWLUL]LQJ WKH &KLQHVH GLDOHFW DQG GLQLQJ FXVWRPV $OLEDED DQG -‘ FRP &KLQD¶V WZR ODUJHVW Hcommerce sites, retaliated by removing Dolce & Gabbana products from their online stores.
© McGraw Hill LLC
Davydenko Yuliia/Shutterstock
16
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Individualism
Masculinity
Uncertainty
avoidance
Power
distance
© McGraw Hill LLC
Time
orientation
Culture
Indulgence
17
Exhibit 8.3: Country Clusters
Power Distance and Individualism
Access the text alternative for slide images.
© McGraw Hill LLC
Source: Geert Hofstede, Gert Jan Hofstede, and Michael Minkov, Cultures and Organizations, Software of the Mind, Third Revised Edition, McGraw-Hill 2010, ISBN: 0-07166418-1. © Geert Hofstede B.V. quoted with permission.
18
The Appeal of the BRIC Countries
Great potential for growth in the global community:
‡ Brazil.
‡ Russia.
‡ India.
‡ China.
© McGraw Hill LLC
19
PROGRESS CHECK (1 of 3)
1. What metrics can help analyze the economic
environment of a country?
2. What types of governmental actions should we
be concerned about as we evaluate a country?
3. What are some important cultural dimensions?
4. Why are each of the BRIC countries viewed as
potential candidates for global expansion?
© McGraw Hill LLC
20
Exhibit 8.4: Global Entry Strategies
Access the text alternative for slide images.
© McGraw Hill LLC
21
Exporting
Exporting means producing
goods in one country and
selling them in another.
This entry strategy requires
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also allows for only a limited
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Rolex exports its watches to countries all over the
world from its factory in Switzerland.
© McGraw Hill LLC
Jeafish Ping/Shutterstock
22
Franchising
A franchising contract allows the
franchisee to operate a
business²a retail product or
service firm or a B2B provider²
using the name and business
format developed and supported
by the franchisor.
Many of the best-known retailers
in the United States are also
successful global franchisors,
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and Holiday Inn.
© McGraw Hill LLC
Elizabeth Cummings/Ecummings00/123RF
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Strategic Alliance
Collaborative
relationships between
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not create an equity
partnership.
© McGraw Hill LLC
Xinhua/Alamy Stock Photo
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Joint Venture
A joint venture is formed
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market pools its resources
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Ownership, control, and
profits are shared.
The local partner offers
the foreign entrant greater
understanding of the
market and access to
resources such as
vendors and real estate.
© McGraw Hill LLC
Atstock Productions/Shutterstock
25
Direct Investment
Direct investment requires a
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ownership of its plants,
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in a foreign country, often
through the formation of wholly
owned subsidiaries.
Requires the highest level of
investment and exposes the
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including the loss of its
operating and/or initial
investments.
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China-based Lenovo purchased U.S.-EDVHG ,%0¶V 3& GLYLVLRQ
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headquarters in both Beijing and North Carolina.
Source: Lenovo
26
PROGRESS CHECK (2 of 3)
1. Which global entry strategy has the least risk
and why?
2. Which global entry strategy has the most risk
and why?
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27
Choosing a Global Marketing Strategy:
Segmentation, Targeting, and Positioning (STP)
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28
The Global Marketing Mix:
Global Product or Service Strategies
Return to the parent-slide glossary term.
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29
The Global Marketing Mix:
Global Pricing Strategies
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30
The Global Marketing Mix:
Global Distribution Strategies
Global distribution
networks form complex
value chains.
In developing countries
consumers may shop at
small, family-owned
stores.
Suppliers must be
creative in delivering to
these outlets.
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Virojt Changyencham/Moment/Getty Images
31
The Global Marketing Mix:
Global Communication Strategies
Literacy levels vary by country.
Differences in language and customs affect
communication.
Cultural and religious differences also matter.
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Shutterstock / Pyty
32
PROGRESS CHECK (3 of 3)
1. What are the components of a global marketing
strategy?
2. What are the three global product strategies?
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33
Because learning changes everything.
®
www.mheducation.com
Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
Because learning changes everything.®
Chapter 5
Analyzing the Marketing
Environment
Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
Learning Objectives
Learning Objective 5.1 Outline how customers, the
company, competitors, corporate partners, and the
physical environment affect marketing strategy.
Learning Objective 5.2 Explain why marketers must
consider their macroenvironment when they make
decisions.
Learning Objective 5.3 Identify various social trends that
impact marketing.
Learning Objective 5.4 Examine the technological
advances that are influencing marketers.
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3
Exhibit 5.2: Understanding the Marketing
Environment
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4
Exhibit 5.2: The Immediate Environment
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5
Company Capabilities
Successful marketing
firms focus on
satisfying customer
needs that match their
core competencies.
Corning initially made its name by producing the glass enclosure to encase
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competency in glass manufacturing while also recognizing marketplace
trends toward mobile devices, Corning shifted its focus.
© McGraw Hill LLC
Somchai Som/Shutterstock
6
Competitors
Know their strengths,
weaknesses, and likely
UHDFWLRQV WR ILUP¶V
marketing activities.
© McGraw Hill LLC
10’000 Hours/Getty Images
7
Corporate Partners
Parties that work
with the focal firm.
Nau works with
manufacturers to
develop clothing
from sustainable
materials.
Nau works with its corporate partners to develop socially
responsible outdoor (left) and urban (right) apparel.
© McGraw Hill LLC
(Left): Philipp Nemenz/Getty Images; (right): PeopleImages/Getty Images
8
Physical Environment
Sustainable development:
Includes land, water, air, and
living organisms.
Products and services are
influenced by how they are
used in the physical
environment, and in turn they
can also influence the physical
environment.
Examples:
‡ Energy Trends.
‡ Greener Practices and
Green Marketing.
‡ Greenwashing.
© McGraw Hill LLC
Caia Image / Image Source
9
17 Global Goals of Sustainable Development
EXHIBIT 5.3 Global Goals of Sustainable Development
)URP WKH 8QLWHG 1DWLRQV ³6XVWDLQDEOH ‘HYHORSPHQW *RDOV *RDOV WR 7UDQVIRUP 2XU :RUOG ´ /DVW 0RGLILHG 0DUFK 7KH content of this
publication has not been approved by the United Nations and does not reflect the views of the United Nations or its officials or Member States.
https://www.un.org/sustainabledevelopment/news/communications-material/.
Access the text alternative for slide images.
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10
PROGRESS CHECK (1 of 2)
1. What are the components of the immediate
environment?
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11
Macroenvironmental Factors
EXHIBIT 5.4 The Macroenvironment
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12
Culture
Shared meanings, beliefs, morals, values, and customs of a group of
people transmitted by words, literature, and institutions.
Country Culture
‡ Subtler aspects can be difficult to navigate.
‡ Sometimes best answer is to establish universal appeal within specific
identities of country culture.
Regional Culture
‡ For national and global chains, particularly important to cater to
regional preferences.
‡ 0F’RQDOG¶V ± slightly different variations of staple menu.
© McGraw Hill LLC
13
Demographics
Characteristics of the human
population and segments,
especially those used to
identify consumer markets.
Provides an easily
understood snapshot of the
typical consumer in a specific
target market.
Marketers use data about
consumers to target offers.
census.gov
© McGraw Hill LLC
Shutterstock / astel design
14
Exhibit 5.5: Generational Cohorts
Generational
cohort
Gen Į
Gen Z
Gen Y
Gen X
Baby
Boomers
Range of birth years
2010±
2025
1997±
2009
1981±
1996
1965±
1980
1946±
1964
Age in 2020
0±10
11±23
24±39
40±55
56±74
Millennials and the Rise of the ‘Experience Economy’
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15
Income
Purchasing power is tied
to income.
Marketing opportunities
exist across the broad
range of income
distribution.
SC Johnson targets the bottom of the
income pyramid by selling pest control
products in Ghana.
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NNehring/iStock/Getty Images
16
Education
Educatio