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home and now keep language. Retention because of being able to go back. Challenge is that they speak 2 languages so makes advance decisions harder. 2013 Data: Married etc…: household most consumerization take place yet household does notalways mean family. Now smaller households than before. (1/2 married half not)changing composition of u.s. households: singles and mingles increasing a lot while married with and without kids decreases. Dinks are dual income no kids they have free spending so attractive marketThe economic environment. The overall climate for marketing. The demand for most productsand most orgs is pro-cyclical: most immediate impact on marketing and business is economic environment. Better economy = beter demand for products = procyclical. Inferior goods = oppositeAmerican economy since 1990: slow economic growth and low rates of inflation. Longest period of prosperity in U.S. history. Followed by severe and stubborn recession.: inflation non-issue in my generation, little inflation in last 30 years ad rate going down. Biggest impact of great recession = Americans more price conscious. Retailing since 1990: many major store chains have gone out of business. Relative decline of malls less interest in shopping: Day to day experience with marketing. Online hasn’t picked upsince only 10% even though less malls.Competition as experienced by real world marketers is much more intense than in economic texts : more competition= more important to pay attention and satisfy customers. Not useful in marketing the economic texts.Monopolistic competition is the most realistic and relevant 4 traditional models for American marketing. Multiple competitors easy entry into markets. Five forces of competition model: quarter model: 1st& most important competition is the one with current competitors but 4 additional ways competition exists. One is new/entering competition. It is a larger model that has more types of competition.Much more realistic useful for organizations decision-makingAdds effects of potential entrant, substitute, suppliers, and buyers.Intensification of competition: Deregulation: increases competition (airline tickets), relaxation/removal of laws that previously restricted competition.Globalization: biggest winners= consumersScrambled (intertype competition) retailing :all types of stores going after other industries
Much easier price comparisons consumers all know better off b/c increase competition , moreprice completion.Laws protecting: competition, consumers: 2 periods protecting, anti-trust laws= competition laws, 2ndhalf says protects consumers1890-1960: Relatively few laws passed & general application any products and co any industry1960: More frequent More specific business and products: filling in details. roughly every 15 years’ political pendulum swung in opposite direction. Liberals=optimistic of gov’t pass laws effecting business. New laws tougher legislation. Conservatives= pessimistic about gov’t passing laws so no new laws. Laws bounced from liberal majority to conservative majorityDe regulation 1975-2008: