Overview
This lecture covers the six elements of the macro environment in marketing—summarized by the acronym CDSTEP—and their influence on consumer relationships and marketing strategies.
Elements of the Macro Environment (CDSTEP)
- The macro environment comprises Culture, Demographics, Social trends, Technology, Economic situation, and Political/Legal environment (CDSTEP).
- These six elements impact how organizations relate to and market to consumers.
Culture
- Culture is a group’s shared beliefs, morals, values, and customs transmitted by language and institutions.
- Two types of culture: country culture (national) and regional culture (local differences within a country).
- Companies adapt marketing (e.g., product variations) to align with regional cultural differences.
Demographics
- Demographics include age, gender, education, and income; also race and ethnicity.
- Income determines purchasing capability; both willingness and ability are required for a viable market segment.
- Higher education levels generally correlate with higher income, helping predict purchasing power.
- Gender roles in purchasing have become more neutral, leading to gender-neutral marketing approaches.
- The U.S. is seeing increased racial and ethnic diversity, affecting market growth and opportunities.
Social Trends
- Key social trends include sustainability, health and wellness, and efficient food use/distribution.
- Sustainability focuses on responsible production and certification (e.g., fair trade).
- Health and wellness trends drive demand for better food labeling and healthy lifestyles.
- There are efforts to reduce food deserts and food waste, and an increase in diet-related products and services.
Technological Advances
- Technology strengthens consumer-business connections but may reduce personal interaction.
- Examples include remote service technologies and the "Internet of Things" (devices communicating to automate tasks).
- Advances raise questions about service quality, human touch, privacy, and data security.
Economic Situation
- Economic factors like inflation, interest rates, and foreign currency fluctuations affect consumer purchasing.
- Global market dynamics influence domestic consumers, even if they do not travel abroad.
Political and Legal Environment
- Laws and regulations support fair competition, consumer protection, and industry standards (especially food/drugs).
- Students do not need to memorize specific laws for exams.
Environmental Response
- Companies must adapt to environmental forces (e.g., hurricanes) that impact supply chains and pricing.
- There are positive examples, such as harnessing solar energy in Florida.
Key Terms & Definitions
- Macro environment — external factors that influence a company’s operations and marketing.
- CDSTEP — acronym for Culture, Demographics, Social trends, Technology, Economic situation, Political/legal environment.
- Demographics — statistical data about populations, such as age, gender, education, income, and ethnicity.
- Food desert — area with limited access to affordable and nutritious food.
Action Items / Next Steps
- Watch the Module 2 wrap-up video.
- Review the study guide to prepare for Exam 1.