1. What’s Happening? Reebok in the news  http://online.wsj.com/article/SB10001424052970204138204 576598743479090706.html http://online.wsj.com/article/SB10001424052970204138204 576598743479090706.html http://www.collegehumor.com/videos/playlist/5927 683/terribleproducts#3906040 http://www.collegehumor.com/videos/playlist/5927 683/terribleproducts#3906040 Video Term Projects

2. Chapter 3 & 4 - The Marketing Environments

3. The Marketing Environment Consist of the internal (microenvironment) and the external environment (macroenvironment).

4. Company FOUR BASIC CATEGORIES The Micro-environment

5. Total organization – many different functional areas Interactive Flexible and creative 5 The microenvironment: Company

6. Business-to-consumer Business-to-business Business –to-Institutional 6 The microenvironment: Customers

7. The microenvironment: Types of Competition Four general types of competition:  Price  Quality  Time (particular important in services)  Location

8. The microenvironment: Competition Forces that impact an industry’s competitive environment) Porter’s Competitive Forces: 1. Supplier power 2. Threat of substitutes 3. Degree of rivalry 4. Buying power of the customer 5. Barriers to entry

9. Alliances Networks Informal partnerships Suppliers Virtual corporations 9 The microenvironment: Collaborators

10. Company UPSTREAM DOWNSTREAM PRIMARY ACTIVITIES Raw Materials Supplier Components Supplier Service Supplier Transportation company Wholesaler Retailer CustomersCustomers The Value Chain – Exhibit 3.2

11. Macroenvironment 1. Physical Environment 2. Sociocultural Forces 3. Demographic Forces 4. Science and Technology 5. Economic Forces 6. Political and Legal Forces Consists of SIX broad categories

12. Exhibit 4-1: Macroenvironment influences on the marketing mix

13. Macroenvironment: Demography The Canadian Population 1. www.populationconnection.org www.populationconnection.org  Canadian population growth attributed to immigration Migration and Urbanization 1. “Golden Horseshoe” – Ontario 2. Montreal and the adjacent regions 3. B.C.’s lower mainland and southern Vancouver Island 4. Calgary-Edmonton Corridor 51% of Canadians live in one of these four areas; 80% of Canadians are urban dwellers

14. Profile of the “Average Canadian Consumer” The Changing Canadian Household Single-Person and Single- Parent Households Working Women Family and Household Income A Multi-cultural Population Macroenvironment: Demography

15. Case: Zoom Airlines Refer to pages 106 – 108 of your textbook.