TUTORIAL CHAPTER 2

MKT 4013

PRINCIPLES OF MARKETING

Guideline

1. Submit your tutorial at LMS before 24 hours of the end of your class.
2. Make sure to save the file with your name
3. Upload the file in Microsoft Word format
4. No submission equal to no attendance
5. Answer all questions
6. Use the format below:
a. Font : Times New Roman (size12)/ Arial (size 11)
b. Spacing: 1.5
c. Alignment: Justify
d. Please bold your main point before elaborate on it

QUESTIONS

1. There are three key generations stated in the macroenvironment. Explain about these
three with example. (10 marks)

2. Concern for the natural environment has grown steadily, increasing the importance of
these trends:
● Shortage of raw materials
● Increased pollution
● Increased governmental interventionDiscuss these three trends in details with
example (10 marks)
 The macro environment consists of the larger societal forces that affect the
micro environment demographic, economic, natural, technological, political, and cultural
forces. This is are three generations stated for the micro environment.

People born between 1946 and 1964. Following World War II, the United States
experienced a population increase or a “boom.” This new generation, often known as
the “baby boomers” or “boomers,” refers to those born between 1946 and 1964. As
more boomers stay in the workforce longer, their economic impact continues to
influence the economic activity. Boomers make up the only population group
experiencing growth in the workforce. This means that the “Golden Years” will in
many cases be spent working. This change in lifestyle will ultimately translate to more
disposable income and purchasing power. For Example Baby boomers are mature.
They’ve been on this earth for quite a while and they don’t have time for a bunch of
nonsense. They want information that will help them live their lives to the fullest. They
want it up front and factual. If you give baby boomers the information they need, they
will run with that information and feel they are equipped to make the best decision
possible.

Gen X is the smallest generation, born between 1965 and 1980 and often referred to
as the bridge between Millennials and Baby Boomers. Gen Xers are now juggling
child care, homeownership, and reaching the peak of their careers. This generation
remembers how video killed the radio star and are more pessimistic about having
enough money to retire. Gen Xers are busy! They’re dealing with children, paying
mortgages and tuition, and working a LOT. Turns out, they’re also on online—more
than 80% of this generation reports that they are on Facebook, MySpace (what?!)
and Twitter. They are more on par with technology adoption and use with millennials,
and are more likely to be politically loyal throughout their lives than either of the other
generations. For example Gen X claim to be the most dedicated to lists while
shopping, but also fessed up to making the most unplanned purchases on their
shopping excursions. This generation is our true hybrid when it comes to marketing.
They grew up without the online shopping experience, so they still enjoy a trip in-
store, but have fully embraced online shopping as well.

The generation that is slowly taking over the workforce and out numbering Baby
Boomers, Gen Y or Millennials were born between 1981 and 1999 and came of age
during the early 2000’s. This generation is most widely talked to and about on social
media and in pop culture—our blog is no exception! Millennials began entering the
 workforce as the economy crashed, and as a result, are the largest generation of
entrepreneurs. They are notoriously soft-hearted and soft-shelled, valuing social
issues far ahead of economics.

Millennials are an economic force, smart marketers are turning to new channels to
hook this generation. They are the least frequent in-store shoppers which I totally
understand, I just went grocery shopping for the first time in a month but tend to
spend large amounts when they do shop. This generation is the most responsive to
online shopping opportunities, recommendations from friends and family, and are
motivated by shopping ease. Millennials are reshaping the way that goods and
services are being marketed by staying unresponsive to traditional marketing tactics.
For example this generation decides where to eat based on Instagram pictures,
chooses hair stylists from Facebook and has their groceries delivered to their door.

Baby Boomers: characteristics

● Baby Boomers appreciate both traditional and 21st century marketing: they’re
retired or are preparing to retire and have accumulated savings so they have
money to spend. They are generally comfortable using text messaging and other
basic apps on their smartphones, but they spend considerably more time on
computers than on mobile devices. Social media for Boomers is, well, social –
they enjoy using it for catching up with their grandchildren and friends, but they
are not likely to respond well to a hard sell from an online ad.They are very loyal,
especially to brands they have known and used all their lives.

Generation X: characteristics
● Generation X is the work hard play hard generation; they’re determined to try new
things and stave off old age for as long as possible.
● But they are time poor. The majority are busy professionals with families so they
don’t have time to explore the digital world in the same way as younger
generations.
● However, they have fully embraced digital media and are almost as present on
social as Millennials.
● Older Gen Xers have some traits similar to Baby Boomers, but the younger ones
behave more like Millennials.
● More than any other generation, Generation X likes to research while shopping
online. They read more reviews and visit more opinion sites than any other
generation and around half are motivated to make a purchase by coupons or
discounts.
● As a generation they wield great spending power.

Generation X: characteristics
Generation X is the work hard play hard generation; they’re determined to try new
things and stave off old age for as long as possible.
But they are time poor. The majority are busy professionals with families so they don’t
have time to explore the digital world in the same way as younger generations.
However, they have fully embraced digital media and are almost as present on social
as Millennials.
Older Gen Xers have some traits similar to Baby Boomers, but the younger ones
behave more like Millennials.
More than any other generation, Generation X likes to research while shopping
online. They read more reviews and visit more opinion sites than any other generation
and around half are motivated to make a purchase by coupons or discounts.
As a generation they wield great spending power.