Analyzing the Marketing Environment

Discussion Questions No. 3

Questions To Answer:

1. Name and describe the types of publics in a company's marketing environment.

2. What are the publics in the marketing context? Why are they important to marketers? Suggest
the publics for a specific business.

3. Describe Generation Z. What differentiates GenZeders from other demographic groups, such as
Baby Boomers, Generation X, and Millennials?

4. How would you characterize the current state of the economic environment in developed
countries? How does it impact the activities and approach of marketers?

5. Why should marketers play close attention to the political environment?

ANSWERS

1. Name and describe the types of publics in a company's marketing environment.

 The company’s marketing environment also includes various publics. A public is any
group that has an actual or potential interest in or impact on an organization’s ability
to achieve its objectives. We can identify seven types of publics:

1. Financial publics: This group influences the company’s ability to obtain funds.
Banks, investment analysts, and stockholders are the major financial publics.
2. Media publics: This group carries news, features, editorial opinions, and other
content. It includes television stations, newspapers, magazines, and blogs and
other social media.
3. Government publics: Management must take government developments into
account. Marketers must often consult the company’s lawyers on issues of
product safety, truth in advertising, and other matters
4. Citizen-action publics: A company’s marketing decisions may be questioned by
consumer organizations, environmental groups, minority groups, and others. Its
public relations department can help it stay in touch with consumer and citizen
groups.
5. Internal publics: This group includes workers, managers, volunteers, and the
board of directors. Large companies use newsletters and other means to inform
and motivate their internal publics. When employees feel good about the
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companies they work for, this positive attitude spills over to the external
publics.
6. General public: A company needs to be concerned about the general public’s
attitude toward its products and activities. The public’s image of the company
affects its buying behavior.
7. Local publics: This group includes local community residents and organizations.
Large companies usually work to become responsible members of the local
communities in which they operate.

2. What are the publics in the marketing context? Why are they important to marketers? Suggest
the publics for a specific business.

 A public is any group that has an actual or potential interest in or impact on an

organization’s ability to achieve its objectives.
 "Publics" are groups that may have a significant impact on
marketing activities formulated to contribute to customers' satisfaction with a product
and an organization. For example, satisfied customers are a public that contribute to a
marketing program through positive word of mouth
 A business can construct strategic marketing plans for some or all of these major Publics
alongside its chosen customer markets. Suppose a business wants to evoke a specific
response from a particular Public, such as donations of time or money (Cause
Marketing). The business would have to design an messaging campaign for this Public
that is enticing and persuading enough to coax the desired response.

Is it realistic for all businesses to pay attention to all of these Publics at the same time?
No. Can you effectively market to all Publics. Yes and No. You have to make the
judgement where to spend your time and resources. However, at some point in time
you will have to deal with each of these Publics in some capacity. It is in your best
interest to at least get to know them, and when appropriate, take action.

3. Describe Generation Z. What differentiates GenZeders from other demographic groups, such as
Baby Boomers, Generation X, and Millennials?

 Generation Z are people born after 2000 (although many analysts include people born
after 1995) who make up the kids, tweens, and teens markets. The generation born
completely within the technological age, war on terror, and multiculturalism. This
generation is the first true global culture as their characteristics and trend is more
uniform across the globe as they become the most open minded generation to date.

 Difference between Gen Z, Gen Y, Gen X and Baby Boomers:

1. Generation Z (iGeneration, Post-millennials, Homeland Generation)
a. Years Born: 1995 to 2015
b. Current ages (2019): 4 to 24
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c. Media Consumption: The average Gen Zer received their first mobile
phone at age 10.3 years. Many of them grew up playing with their
parents' mobile phones or tablets. They have grown up in a hyper-
connected world, and the smartphone is their preferred method of
communication. On average, they spend at least 3 hours a day on their
mobile device.
d. Banking Habits: This generation has seen the struggle of Millennials and
has adopted a more fiscally conservative approach. They want to avoid
debt and appreciate accounts or services that aid in that endeavor.
Debit cards top their priority list followed by mobile banking. Over 50%
have not entered a bank branch in at least 3 months.
e. Shaping Events: Smartphones, social media, never knowing a country
not at war, and seeing the financial struggles of their parents (Gen X).
f. What's next on their financial horizon: Learning about personal
finance. They have a strong appetite for financial education and are
opening savings accounts at younger ages than prior generations.
2. Gen Y or Millennials (Gen Me, Gen We, Echo Boomers)
a. Years Born: 1980 to 1994
b. Current ages (2019): 25 to 39
c. Media Consumption: 95% still watch TV, but Netflix edges out
traditional cable as the provider. Cord-cutting in favor of streaming
services is the popular choice. This generation is extremely comfortable
with mobile devices but 32% will still use a computer for purchases.
They typically have multiple social media accounts.
d. Banking Habits: Millennials have less brand loyalty than previous
generations. They prefer to shop product and features first and have
little patience for inefficient or poor service. Because of this, Millennials
place their trust in brands with superior product history such as Apple
and Google. They seek digital tools to help manage their debt and see
their banks as transactional as opposed to relational.
e. Shaping Events: The Great Recession, the technological explosion of the
internet and social media, and 9/11
f. What's next on their financial horizon: Millennials are entering the
workforce with high amounts of student debt. This is delaying major
purchases like weddings and homes. Because of this financial instability,
Millennials prefer access over ownership which can be seen through
their preference for on-demand services. They want partners that will
help guide them to their big purchases.
3. Gen X ("Latchkey" generation, MTV generation)
a. Years Born: 1965 to 1979
b. Current ages (2019): 40 to 54
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c. Media Consumption: Gen X still reads newspapers, magazines, listens

to the radio, and watches TV -- about 165 hours worth of TV a month.
However, they are also digitally savvy and spend roughly 7 hours a week
on Facebook.
d. Banking Habits: Since they are digitally savvy, Gen X will do some
research and financial management online, but still prefer to do
transactions in person. Believe banking is a person-to-person business
and exhibit brand loyalty.
e. Shaping Events: End of the cold war, the rise of personal computing,
and feeling lost between the two huge generations.
f. What's next on their financial horizon: Gen X is trying to raise a family,
pay off student debt, and take care of aging parents. These demands
put a high strain on their resources. The average Gen Xer carries
$142,000 in debt. They are looking to reduce their debt while building a
stable saving plan for the future.
4. Baby boomers
a. Years Born: 1944 to 1964
b. Current ages (2019): 54 -74
c. Media Consumption: Highest consumers of Traditional media like TV.,
magazines and radio. 90% have facebook.
d. Banking Habits: Prefer going in branch to do transactions, but don’t reject
digital or mobile.
e. Shaping Events: Post WW2 optimism, Vietnam war, and the launch of the
environmental movement.
f. What's next on their financial horizon: Unexpectedly, this generation is
experiencing the highest growth in student loan debt. They have a belief
that you should take care of your children enough to set them on the right
course but don't plan on leaving any inheritance.

4. How would you characterize the current state of the economic environment in developed
countries? How does it impact the activities and approach of marketers?

 Global growth is expected to remain at 3.0 per cent in 2019 and 2020, however, the
steady pace of expansion in the global economy masks an increase in downside risks
that could potentially exacerbate development challenges in many parts of the world,
according to the World Economic Situation and Prospects 2019. The global economy is
facing a confluence of risks, which could severely disrupt economic activity and inflict
significant damage on longer-term development prospects. These risks include an
escalation of trade disputes, an abrupt tightening of global financial conditions, and
intensifying climate risks.
In many developed countries, growth rates have risen close to their potential, while
unemployment rates have dropped to historical lows. (Source: United Nations)
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5. Why should marketers play close attention to the political environment?

 The political environment consists of laws, agencies, and groups that influence or limit
marketing actions. The political environment has undergone changes that affect
marketing worldwide: increasing legislation regulating business, strong government
agency enforcement, and greater emphasis on ethics and socially responsible actions.
Marketers (firms) should track their political environment. Change in the political factors
can affect business strategy because of the following reasons: The stability of a political
system can affect the appeal of a particular local market. Government actions influence
the economic environment.