Marketing Multiple Choice and Short Answer Questions
© 2012 McGraw-Hill Ryerson Ltd.
The Marketing Environment
What are some of the things we need to think about in The Marketing Environment?
Let’s identify a few of the Marketing Environment trends, issues or changes we see in this photo montage.
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Module B – The Marketing Environment
© 2012 McGraw-Hill Ryerson Ltd.
TODAY: REVIEW & Updates
- Birds of a Feather groups
- Student shares :-)
- Copy of book in Library this week (on order)
- Quizzes up by end of today on Blackboard (in Lab)
- Assignment Part 1 posted, Part 2 up by next class
- VIDEO REVIEW
The Marketing Mix (4 P’s, 4E’s)
Market Segmentation Variables (Target Market, the 4 O’s)
- Today: Chapter 2 (Marketing Environment)
- Review Assignment Part 1 + CELEBRITIES & PRODUCT LINE
- (We may start Chapter 4, if time)
© 2012 McGraw-Hill Ryerson Ltd.
The Marketing Environment
Chapter
2
© 2012 McGraw-Hill Ryerson Ltd.
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Learning Objectives
- Understand the importance of a marketing environment scan and how it is used to improve marketing programs
- Describe the elements of a marketing environmental scan and summarize the trends affecting each element
- Outline the current demographic and socio-cultural influences that are affecting marketing approaches
- Explain how changes in the economic environment can influence consumer purchase behaviour
- Discuss the technological developments shaping current marketing practices
- Describe the different forms of competition and the regulatory forces that shape the marketing industry
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© 2012 McGraw-Hill Ryerson Ltd.
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Marketing Environment
LO 2
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The Marketing Environmental Scan:
The process of continually acquiring information on events occurring outside an organization to identify trends, opportunities, and threats to a business.
This ensures the organization’s goods, services and ideas are relevant and meaningful.
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Demographic Forces
- Statistics Canada
- Companies can also do research
LO 3
Source: http://www12.statcan.gc.ca/census-recensement/2006/dp-pd/92-596/index.cfm?Lang=eng
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Statistics Canada provides access to demographic information
Characteristics such as age, gender, ethnicity, income and occupation of a group of people
Companies can also complete their own demographic research
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© 2012 McGraw-Hill Ryerson Ltd.
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Demographic Forces – Aging Population
People 50+ control 75% of Canadian household net worth
*2006 Census of Canada
LO 3
| Total Canadian Population* | 31.6 million | 100% |
| Population 55-64 | 3.7 million | 11.7% |
| Population 65+ | 13.7% |
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Demographic Forces – Aging Population
LO 3
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Demographic Forces – Diverse Generations
- Baby Boomers (1946 and 1964)
- Generation X (1965 and 1974)
- Generation Y (1975 and 1991)
- Generation Z (1992 and 2010)
LO 3
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Baby Boomers
Born between 1946 and 1964
60% of consumer goods and service expenditures
Have redefined concept of aging: health focus
Growing social media use
Generation X
Born between 1965 and 1974
12% of the population
Different from Baby Boomers:
Not brand loyal, more self-reliant, entrepreneurial and educated
Less prone to materialism and extravagance
Generation Y
Born between 1975 and 1991
Children of Baby Boomers
Also referred to as “echo boom” or “millennials”
27.5% of the population
Music, technology and sports purchases
Generation Z
Born between 1992 and 2010
Grown up with the Internet
Very objective in purchases, not brand loyal
Discoverers and creators of online content
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Demographic Forces – Ethnic Diversity
LO 3
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Demographic Forces – Ethnic Diversity
- 2/3 of Canada’s population growth (2001-2006) from immigration
- In 2006, 6.2 million foreign-born people living in Canada
- Visible minorities make up 50% of population in large urban areas
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LO 3
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Copyright 2009, McGraw-Hill Ryerson
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© 2012 McGraw-Hill Ryerson Ltd.
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Demographic Forces – Big City Dwelling
- In more than 2006, more than 80% of Canadians lived in urban areas and suburbs
LO 3
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photo is of Hong Kong
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© 2012 McGraw-Hill Ryerson Ltd.
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Demographic Forces – Non-Traditional Families
Changes in family structure:
- Smaller families
- More common-law relationships
- Single-parent families
- Blended families
- Same-sex marriages
LO 3
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Socio-Cultural Forces
- Marketers monitor socio-cultural forces so they can capitalize on new opportunities
- Can include shared cultural values and beliefs
LO 3
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Marketers monitor socio-cultural forces so they can capitalize on new opportunities
These can be cultural values, ideas and attitudes that are learned and shared among a group of people
Also includes society’s morals and beliefs, demonstrated through common behaviour
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Socio-Cultural Changes
- Media usage
- Ethnic foods
- Health and fitness
- Environmental awareness
- Changing gender roles
LO 3
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Economic Forces
- A change in the economy impacts a person’s ability to purchase
LO 4
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Macroeconomic Forces
State of a country’s economy as a whole
- Key economic indicators:
Inflation rate
Unemployment rate
Economic growth rate
Consumer confidence
Recession
LO 4
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Microeconomic Forces
Consumer buying power
- Impact on supply and demand of these factors:
Inflation rate
Unemployment rate
Economic growth rate
Consumer confidence
Recession
LO 4
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How this is impacted by individual, household and company decisions to purchase based on:
Gross income
Disposable income
Discretionary income
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Technological Forces
- New technologies are being introduced and consumers are accepting these new tools at different rates
LO 5
http://www.kickstarter.com/projects/597507018/pebble-e-paper-watch-for-iphone-and-android
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New technologies are being introduced and consumers are accepting these new tools
Canadians lead the world in tablet computer use (2011)
Only 10% of Canadians feel “lost” with technology (2010)
83% of people see high speed internet as a necessity
62% of Canadians are on a computer or smartphone while watching TV
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Technological Advances
- Internet and search
- Global communications
- Downloading
- Social Media
- Smartphones
- Tablets and eReaders
- Manufacturing
- Transportation
LO 5
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Internet and search engines
Email, text, and instant messaging
Social networking sites
Video sharing sites
Media Downloading
Blogs
Online TV
Cell phones
Tablets and eReaders
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Competitive Forces
- Marketers must monitor and analyze competitive activity
LO 6
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Competitive Forces
- Marketers must understand the competitive nature of their industry
LO 6
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Regulatory Forces
- A marketer must be aware of the regulations that affect how they do business
protect consumers from unscrupulous business practices
encourage fair competition
legal and ethical guidelines for businesses
LO 6
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Regulatory Groups in Canada
- Competition Bureau
- Advertising Standards Canada (ASC)
- Canadian Radio & Television & Telecommunications Commission (CRTC)
- Do Not Call List (DNCL)
- Canadian Marketing Association (CMA)
- Better Business Bureau (BBB)
- Legislation: spam, contests
LO 6
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© 2012 McGraw-Hill Ryerson Ltd.
p. 52 Environmental Scan: Canadian Universities
© 2012 McGraw-Hill Ryerson Ltd.
p. 52 – Environmental Scan
A. FACTS?
B. MKTG IDEAS? 4P’s