Copyright © 2012 McGraw-Hill Ryerson Limited Ajax Persaud Shirley Lichti Dhruv Grewal Michael Levy Week Two Analyzing the Marketing Environment

3-2 Chapter Objectives LO1 Identify the factors in a firm’s microenvironment LO2 Explain how the factors in a firm’s microenvironment influence its marketing strategy LO3 Identify the factors in a firm’s macroenvironment LO4 Explain how the factors in a firm’s macroenvironment influence its marketing strategy LO5 Identify and discuss important trends affecting marketing decisions today LEARNING OBJECTIVES

3-3 Chapter Roadmap

3-4 A Marketing Environment Analysis Framework LO1, LO3

3-5 The Microenvironment LO1

3-6 Environmental Analysis Applying a S.W.O.T. Analysis

3-7 Microenvironment Factors 1. The company 1. Resources 2. The offering 3. The people 4. Management 2. The suppliers 3. The customers 4. Marketing Intermediaries 5. Publics

3-8 Successfully Leveraging Company Capabilities Existing knowledge, facilities, patents, etc. New markets, new products, etc. Core competency applied to LO2

3-9 Competitors Identify and analyze direct and indirect competitors Know strengths & weaknesses Competitive Intelligence (CI) used to collect and synthesize info LO2

3-10 Corporate Partners From factory Retailer to Firms are part of alliances Align with competitors, suppliers, etc. Just in Time Delivery Systems (JIT) LO2

3-11 Macroenvironmental Factors Acronym: CDSTEP LO3

3-12 C ulture Country Culture vs. Regional Culture LO4

3-13 D emographics Provides an easily understood snapshot of the typical consumer in a specific target market LO4

3-14 Generational Cohorts TweensGen YGen X Baby Boomers Seniors LO4

3-15 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Generational Cohorts

3-16 Seniors, Boomers and X and Y’ers

3-17 Case in Point: Parker Brothers Monopoly 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. LO4

3-18 Income Purchasing power is tied to income Statistics Canada tracks income Many middle class families feel the decline in purchasing power in recent years LO4

3-19 Education = Education is related to income, which determines spending power LO4

3-20 Gender Marketing has changed to reflect these shifts Male/female roles have been shifting LO4

3-21 S ocial Trends LO5

3-22 Green Consumers 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. LO5

3-23 Marketing to children Children are highly impressionable, and most food advertising attract them associated with cartoons and celebrities. Companies cannot use celebrities and cartoon to promote unhealthy food.

3-24 Loss of privacy Identity theft Do not call Do not Privacy Concerns LO5

3-25 Time-Poor Society In the majority of families, most parents work Consumers have many more choices regarding leisure time Many consumers multitask LO5

3-26 T echnological Advances Technology has impacted every aspect of marketing: New products New forms of communication New retail channels LO5

3-27 E conomic Situation Combined with inflation and interest rates affect a firm’s ability to market goods and services Foreign currency fluctuations Conference Board Website LO5

3-28 P olitical/Regulatory Environment Competition Act Consumer Packaging and Labelling Act Food and Drugs Act Access to Information Act Patent ActNorth American Free Trade Agreement (NAFTA) LO5

3-29 Competition Act DOUBLE TICKETING – When two prices are clearly visible on a product and is sold at the higher of the two prices – not applicable if the company has made an honest error.

3-30 Competition Act GENERAL MISREPRESENTATION – Any claim that is false or untrue – a fact is misstated or creates a false impression. TESTS AND PERFORMANCE CLAIMS - An item is advertised to perform in such as way because of tests made, but in actual fact, no test may exist or the tests may actually be inaccurate.

3-31 What is the difference between a SWOT and Trend Analysis? They are both part of the Environmental Analysis Trend analysis looks at the trends specifically to the industry and product SWOT evaluates the micro and marco elements of the product/company SWOT trends are unrelated to the industry