Analyzing the Marketing Environment 119

Analyzing the Marketing Environment 119

Marketing by the Numbers Demographic Trends

Marketers are interested in demographic trends related to vari-
ables such as age, ethnicity, and population. The U.S. Census

Bureau provides considerable demographic information that is
useful for marketers. For example, the following table provides
a sample of such population data (see www.censusscope.
org/2010Census/PDFs/RaceEth-States.pdf):
2000 2010
State Total Hispanic Total Hispanic
Georgia 8,186,453 435,227 9,687,653 853,689
Michigan 9,938,444 323,877 9,883,640 436,358
California 33,871,648 10,966,556 37,253,956 14,013,719

3-13 What percentage change in the total and Hispanic
populations occurred in each state between 2000 and

2010? What conclusions can be drawn from this anal-
ysis? (AACSB: Communication; Analytical Reasoning;

Reflective Thinking)

3-14 Research another demographic trend and create a pre-
sentation to marketers regarding the significance of the

trend you analyzed. (AACSB: Communication; Reflective
Thinking)

Video Case Burger King
In the fast-food burgers business, french fries are perhaps more
important than the burgers themselves. System-wide, Burger

King sells 56 million orders of french fries every month—one or-
der of fries for every two customers. But nothing is exempt from

the impact of marketing environment forces. As health trends
drove some companies to cut back on fatty foods, Burger King
saw its french fry sales dip.
So Burger King decided to let people have their fries and
eat them to. To bring health-conscious customers back to the
counter, Burger King introduced Satisfries—french fries with 30
percent less fat and 20 percent fewer calories than its regular
fries. In a product category that has seen little if any innovation,

Satisfries could be a big game changer. Still, reduced fat and
calories may not be enough to make a difference to health-food
lovers. And at 30 to 40 cents more per item, Satisfries may end
up as little more than a fry fiasco.

After viewing the video featuring Burger King, answer the fol-
lowing questions:

3-15 Considering marketing environment forces, describe how
Burger King went about developing its new Satisfries.
3-16 With Satisfries, has Burger King truly created customer
value, or is it just chasing trends? Explain.

Company Case Fitbit: Riding the Fitness Wave to Glory
It was 2009. James Park and Eric Friedman were at a breaking
point. They’d been flitting around Asia for months, setting up the
supply chain for their company’s first product, the Fitbit Tracker.
Having raised capital to launch the product with nothing more
than a circuit board in a balsa wood box, they were now on the

verge of pushing the button to start the assembly line. But with
thousands of orders to fill, they discovered that the antenna on the
device wasn’t working properly. They stuck a piece of foam on the

circuit board and called it “good enough.” Five thousand custom-
ers received shiny new Fitbit Trackers just in time for the holidays.

insurance year over year, regardless of an increase in price, un-
less they contact the insurer and cancel it. If only cancelling insur-
ance was that simple. If consumers fail to read the small print in

their contracts carefully, they are hit by a cancellation fee. With
higher percentages of consumers checking insurance quotes on

price comparison websites, insurers still take the chance of in-
ertia when the consumers receive their renewal notices. Insurers

seem to rely on the fact that a certain percentage of consumers
do not bother to read the documents, and if they do, they do not
readily notice that the price is far higher than the previous year.

The Financial Conduct Authority, which has responsibility for deal-
ing with disputes arising out of financial services, receives around

500 complaints a year regarding insurance renewal. From April
2017, UK insurers are required to include text on their renewal
communication to encourage consumers to shop around for the

best deal. In cases when consumers have renewed with the same
insurer four times, an additional message is required in the renewal
communication to encourage shopping around. Insurers are also
required to disclose last year’s premium alongside this year’s for
clear comparison.
3-11 Discuss the aspects of the competitive environment of
the insurance industry that might encourage this type of
practice. (AACSB: Communication; Use of IT; Reflective
Thinking)
3-12 Discuss whether or not technology and access
to price comparison websites can banish this type of
fraudulent practice in the insurance industry. (AACSB:
Communication; Use of IT; Reflective Thinking)