chapter 2 the marketing environment. learning objectives understand the importance of monitoring...
TRANSCRIPT
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Chapter 2
The Marketing Environment
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Learning Objectives
• Understand the importance of monitoring change in the marketing environment
• Describe how trends in the demographic, socio-cultural, economic, and technological environment affect marketing
• Recognize the impact competition has on companies and their marketing programs
• Understand the regulatory forces that encourage free market competition, and protect consumers from questionable marketing practices
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Environmental Change
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Changed the way the consumer:
• Collects information• Communicates• Contributes
Changed the way the consumer:
• Collects information• Communicates• Contributes
The Internet
The Internet
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Marketing Environment
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ChangesChanges
Awareness of changes
Awareness of changes
Thwart threatsThwart threats
OpportunitiesOpportunities
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Marketing Environment
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Marketing Environment
The knowledge from a marketing environmental scan Relevant products, services, and ideas
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Demographic Forces
• Statistics Canada provides access to demographics information
• Companies can complete their own demographics research
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Demographic Forces - Age
Aging Population
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People 50+ control 75% of Canadian household net
worth
People 50+ control 75% of Canadian household net
worth
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Demographic Forces
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Demographic Forces – Diverse Generations
Baby Boomers• 60% of consumer goods and service
expenditures• Have redefined the concept of aging
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Demographic Forces – Diverse Generations
Generation X• 12% of the population• Not brand loyal• Self-reliant• Entrepreneurial• Educated
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Demographic Forces – Diverse Generations
Generation Y• 27.5% of the population• Technology and sports
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Demographic Forces - Urbanization
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Demographic Forces – Ethnic Diversity
• 2/3 of Canada’s population growth is due to immigration
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Demographic Forces – Non-Traditional Families
Changes in family structure:• More common-law relationships• Single-parent families• Blended families• Same-sex marriages
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Socio-Cultural Forces
• Marketers monitor socio-cultural forces so they can capitalize on new opportunities
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Socio-Cultural Changes
• Ethnic foods• Health and fitness• Environmental awareness• Changing gender roles
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Economic Forces
• A change in the economy impacts a person’s ability to purchase
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Economic Forces
Key economic indicators:• Inflation rate• Unemployment rate• Economic growth rate
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Microeconomic Forces
• Gross income• Disposable income• Discretionary income
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Technological Forces
• What new inventory are being introduced and how consumers are accepting these technological forces
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Technological Advances
• Internet and search engines• Email, text, and instant messaging• Social networking sites• Video sharing sites• Downloading• Blogs • Online TV• Cell phones
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Technological Forces
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Competitive Forces
• An analysis of direct competitors and indirect competitors is necessary in designing a marketing strategy that is responsive to competition
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Competition
Types of Competitive Markets
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Regulatory Forces
• A marketer must be aware of regulations that affect how they do business
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Regulatory Groups
• Competition Bureau• Canadian Radio & Television &
Telecommunications Commission (CRTC)
• Advertising Standards Council (ASC)• Canadian Marketing Association
(CMA)• Better Business Bureau (BBB)
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Marketing Environmental Scan
• The process of continually acquiring information on events occurring outside the organization to identify trends, opportunities, and threats to your business
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Demographics
• The statistical data on a population according to characteristics such as age, gender, ethnicity, income, and occupation
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Baby Boomers
• People born between 1946 and 1964
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Generation X
• People born between 1965 and 1976
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Generation Y
• People born between 1975 and 1995
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Socio-Cultural Forces
• Cultural values, ideas, and attitudes, and society’s morals and beliefs
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Economy
• The collective income, expenditures, and resources that affect the cost of running a business or household
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Gross Income
• Total amount of money made in one year by a person, household, or family unit, including taxes
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Disposable Income
• Balance of income left after paying taxes that is used for spending and savings
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Discretionary Income
• Money that consumers have left after paying taxes and buying necessities
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Technological Forces
• Inventions from applied science or engineering research
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Direct Competitors
• Similar products sold in the same category
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Indirect Competitors
• Products competing for the same buying dollar in a slightly different, but related, category
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Competition
• Alternative products that can satisfy a specific market’s needs
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Regulations
• Restrictions placed on marketing practices by government and industry associations
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