3-1 Chapter 3 Analyzing the Marketing Environment

3-2 LO1 Outline how the factors in a firm’s microenvironment influence its marketing strategy LO2 Identify the factors in a firm’s macroenvironment and explain how they influence the overall marketing strategy LO3 Identify important social and natural trends that impact marketing decisions LEARNING OBJECTIVES Chapter 3: Analyzing the Marketing Environment

3-3 ATTACK OR DEFEND! Canadian Tire – an icon & top rated brand Continuously monitor both internal & external environments Keys to longevity & success: vision, good strategic planning & execution of market strategy LO1, LO2

3-4 LO1, LO2 A MARKETING ENVIRONMENT ANALYSIS FRAMEWORK

3-5 MICROENVIRONMENTAL FACTORS LO1

3-6 Knowledge, facilities, patents, technology, people etc. Target markets, products etc. Core competency = Satisfy customer needs applied to LO1 COMPANY CAPABILITIES Image courtesy of Apple Inc.

3-7 Identify and analyze direct and indirect competitors Know strengths & weaknesses Competitive Intelligence (CI) used to collect and synthesize info LO1 COMPETITION

3-8 LO1 GILLETTE VS. SCHICK - WHO WAS FIRST?

3-9 From manufacture Retailer to Firms are part of alliances – few work in isolation Align with suppliers, corporate partners etc. LO1 CORPORATE PARTNERS

3-10 Which of the following is NOT considered part of a company’s immediate environment? A)company’s corporate partners B)company’s stockholders C)competitive intelligence D)company’s capabilities LO1 Test Your Knowledge

3-11 Acronym: CDSTEP LO2 MACROENVIRONMENTAL FACTORS

3-12 C ULTURE Culture Country Culture vs. Regional Subcultures LO2

3-13 Characteristics of human populations & segments used to identify consumer markets. LO2 D EMOGRAPHICS GenderEthnicityAge

3-14 Which of the following are examples of typical demographics? A)age, gender, race B)behavior, dress, physical settings C)temperature, topology, climate D)conservative, liberal, independent LO2 Test Your Knowledge

3-15 LO2 GENERATIONAL COHORTS A group of people of the same generation. Baby Boomers Generation X Generation Y Seniors Tweens

3-16 Challenge Answer Results To make a 65 year old board game relevant to today’s market. Involve consumer in the redesign. Ask consumers what international cities should be included in the new “Here and Now Edition: World Edition.” New edition available both interactive and traditional board game format with all new properties and new icons. LO2 CASE IN POINT: PARKER BROTHERS MONOPOLY

3-17 LO2 Monopoly

3-18 Purchasing power is tied to income Statistics Canada tracks income Many middle class families feel the decline in purchasing power in recent years LO2 INCOME

3-19 = Education is related to income, which determines spending power LO2 EDUCATION

3-20 Marketing has changed to reflect these shifts Male/female roles have been shifting LO2 GENDER

3-21 ETHNICITY Ethnic composition of Canada is changing 1/5 Canadians not born in Canada By 2030, population growth will be mainly attributed to immigration LO2

3-22 Technology has impacted every aspect of marketing: New products New forms of communication New retail channels LO2 T ECHNOLOGICAL ADVANCES

3-23 SOCIAL & MOBILE MARKETING 3.1 LO2 Image courtesy of Foursquare Foursquare’s promise & Facebook’s response: A location based mobile platform Rewards frequent customers & gives helpful tips A great way to attract, appeal to & retain loyal customers.

3-24 Combined with inflation and interest rates affect a firm’s ability to market goods and services Foreign currency fluctuations Conference Board Website LO2 E CONOMIC SITUATION

3-25 Competition Act Consumer Packaging and Labelling Act Food and Drugs Act Access to Information Act Patent Act North American Free Trade Agreement (NAFTA) LO2 P OLITICAL/LEGAL ENVIRONMENT

3-26 Since the turn of the century, the government has enacted laws that promote both fair trade and competition by prohibiting __________ that would damage a competitive marketplace. A)the formation of foreign corporations B)excessive foreign imports C)price gouging D)the formation of monopolies or alliances LO2 Test Your Knowledge

3-27 LO3 S OCIAL & NATURAL TRENDS GREENER CONSUMERS PRIVACY CONCERNS TIME-POOR SOCIETY

3-28 Customers who appreciate the efforts of companies to supply them with environmentally friendly merchandise. Customers who appreciate the efforts of companies to supply them with environmentally friendly merchandise. LO3 GREENER CONSUMERS

3-29 A compost crusader Growing City: a service to pick up food scraps from offices in Vancouver area 67% of waste comes from offices & industry In 2015, organic materials will be banned from landfills LO3 ENTREPRENEURIAL MARKETING 3.1 – TURNING TRASH INTO CASH

3-30 Loss of privacy Identity theft Do not call Do not LO3 PRIVACY CONCERNS

3-31 In the majority of families, most parents work Consumers have many more choices regarding leisure time Many consumers multitask LO3 TIME-POOR SOCIETY

3-32 Minorities now represent ________ of the population. A)one-quarter B)one-third C)one-half D)two-thirds LO3 Test Your Knowledge