of the environmental analysis part of market sensing.

previously we focused on demographic

analysis and let's continue with that right now.

the first concept that I want to discuss with you is

that of a generational cohort.

a cohort is really just a group

so when we're talking about a generational cohort it's a group

up people or individuals that were raised in the same time period

and therefore they they went through the same cultural experiences

and those same cultural experiences might

make them need different products or services

or react similarly to different products or services.

I'm going to

use the reference provided by the Pew resource Research Foundation

and you may have heard of some of these cohorts. the depression generation was

born before 1946.

the baby boom generation that you probably hear a lot

now was born between 1946 and 1964.

these people grew up in a very healthy economy

post-world war two and nuclear families were there was a mom and dad

both present in the household were typical.

they were encouraged to express their individualism.

generation x was born between 1965 and 1980 and they were really the first

generation that was raised

in single-parent households or where both parents worked outside the home.

so they came home and maybe fixed themselves a snack and

products like macaroni and cheese

that you previously had to boil the water on the stove

and combine were redesigned so that it was easy for kids to pop in a single

serve container

and put this after-school snack in the microwave.

the Millennials were born between 1981 and 2000 and

they are the first generation to come of age in this new

millennium. basically we call them digital natives because they're very

comfortable

using any type a digital

technology whether it be smartphones,

tablets, computers etc. where they don't have to be taught how to use

these -- it's just natural or "native"

to them. they're also raised in a time where violence

terrorism and drugs became realities of life.

so they might buy products and services that help them to stay

connected with

other people. they also accept

all the different racial and ethnic backgrounds

much more than previous generations did.

I'm if you click on this link here it's very interesting. You

come to another article where it speak in greater detail about the millenials

and some of the characteristics of them being

more ethnically and racially diverse.

they required behaviors like tweeting

texting and social media as typical.

very interestingly they're also the least

religiously observant youths.

so this particular article you can access from the slide

and you can see information about all these

generational cohorts and how they might

respond similarly to

different products and services marketed to them.

so we were talking about the Pew Research Foundation

and I just want to bring up this slide. you can see

the location right here.

and this gives you some

different topics -- different social topics --

on which the Pew Research Foundation

does studies. so if you wanted to check look at changing

American attitudes about parenthood

for example or or changing views about home ownership --

because obviously if you're selling something that deals with home ownership --

or

building homes or something -- how people value -- their changing social

values --

affects the demand for those products. so again this list just continues and you

can see

many examples here of changing

-- studies -- see whether American values about retirement

or about student loans. I mean colleges and universities market themselves to

students and many students now --

because of their changing attitudes about students

loans -- are very cautious about going to

a costly private university where they could

go to a public or community college come out and be making the same

income and have much lower level of cost of attending college.

so these are just some examples about changing social

and cultural trends the Pew Research Foundation studies.

as an example let's look

at the Pew Research

on changing American attitudes toward parenting

and the way fathers and mothers spend time

and how that's changed over the last century.

interestingly enough since 1965

mothers have almost miles tripled the amount

paid work that they do each week but they still

are behind fathers in terms of paid

work that they do. meanwhile if you look at the fathers

they have increase the amount of time that they spend on housework

and child care over time. but they still

only do about half the child care and household

work that mothers do. so this explains why

products that are used for household care and taking care of kids and family

are often most often marketed towards

mothers. and this particular

for example shows

how in most two-parent households today

both parents work outside the home

at least part-time. so

they spend about the same amount of hours

when you add in childcare, housework, and paid work

although again

illustrating what how fathers spend less time on child care

and house work than do moms.

both working moms and working dads

say that balancing work and family is hard for them to do

and that they always feel rushed. this again explains why many products and

services

are a marketed or promoted

as being able to make your life easier or to handle

all this activity that you doing. sorry I hit the wrong button there.

this explains more moms are wanting to work part

part time especially since started of the recession.

unmarried

mothers in particular say that they would like to be able to work full-time.

when we ask about what

the ideal situation is for kids only about 16 percent

of mothers feel that the ideal situation

is for them to work full-time. we know in reality

more do work full time than 16 percent so

again you can see many products and services

that try to eliminate the

role conflict or the guilt mothers might feel

about working when they feel that it really would be best for them

to not work full-time.

again dads agree that it would be

better to have a mom who works part-time

but the the

percentage of dads say that it's better to not have a mom work at all has

declined so

it's becoming more socially and culturally acceptable

to have moms working. this a kind of explains why

people work and what they want.

how much time they get with their kids.

a good percentage mothers

feel that they spent too little time with the kids. a greater percentage of dads

feel that they spend

they spent too little time with their kids. again you might see

parents or promotions of

dad spending quality time with their kids

as a way to promote to those fathers.

so I hope that this has illustrated for you a little bit

about how america's attitudes about parenting have changed and how those

changes in

attitudes might affect demand

for different products or services. let's look at another

attitude change -- potty training.

it's interesting and if you think about how attitudes toward potty training have

changed, you can see certain products for which this would affect the demand --

obviously diapers,

both cloth and disposable diapers,

as well as things like pull ups

or even children's clothing. let's look at how

the attitudes of the potty training have changed. in 1950

almost a hundred percent of children wore cloth diapers

and ninety-five percent of children were trained by the aged 18-month.

so the market for disposable diapers did

even exist about sixty years ago. and

obviously because people didn't like caring for cloth diapers --

washing all those diapers -- that's probably one of the reasons kids were

potty trained early.

just 30 years later in 1980

about fifty percent of children wore cloth diapers

while the other were disposable diapers and only about

50 percent verses a ninety-five percent

of children were potty trained by the age 18-months.

today almost 90 to 95 percent of children wear disposable diapers

so the market basically for cloth diapers has

declined to very small.

and only about 10 percent of children are potty trained by the

age of 18-months. today

the average age for potty training

is about 36-months so basically

two-and-a-half years. and so what kind of implications

does this have on diapers -- disposable diaper --

obviously the disposable diapers need to be made in

much larger size. and we see products like pull ups for older kids that don't

want to be wearing

baby diapers. now they can wear big kid

pants instead. one thing I might want to say is that the use of disposable

diapers

is increasing just slightly because

the natural environment concerns that we brought up in a previous lesson --

that it is more eco- friendly

to use cloth diapers than disposable diapers.

and i cited my source here just so that you can see

that. so far we have discussed

demographic, social, and cultural

influences on marketing. all those being in the

external marketing environment. what I'd like to talk now about a little bit

is global marketing influences.

and we think about a company that wants to

sell its products or services in another country --

what kind of implications -- special

implications -- are there for global marketing? and probably one of the first

things we need to think about

are the different economies of different countries

and the different economic influences.

one economic influence is the concept

of exchange rates. and so if you were to take

a US dollar for example and take it to europe

and exchange it for a euro, for each dollar

in america you have you would get

.72 euros. a dollar does an exchange

evenly for a dollar. your dollar doesn't

go as far in Europe when you buy products and services.

if you were a European and you came to the United States

for every euro you brought over you would get a d$1.38 here in

the United States.

so your dollar would stretch a little further. and that explains why

after our recession in 2008

many Europeans were actually flying to

New York City and shopping there for Christmas because they could combine a

vacation with low airfares

and the buying power at the euro in the States

with their Christmas shopping. and you can see here

the exchange rates for the Great Britain pound, the Indian,

the Australian dollar, the Canadian dollar, and there's more currencies

available

on this site as well. so one of the

biggest influences to Global Trade or global marketing of products or

services

are just the fact that there are different economies

and different exchange rates. another major

influence is what we would call political influence.

and here if a country produces goods and services

itself we would call that domestic product.

arm if it imports products or services made in another country

we would call those foreign products. so if a country wanted to

protect its domestic

production of goods and services, one thing that it could do

would be to tax the

imports or the foreign products and those taxes are called

tariffs. and what that tariff does

then in essence is increase the cost

of the foreign product and therefore make the domestic product more price

competitive

with the foreign products. another concept would be the concept