Lecture 2 January
Chapter 3&4: Analyzing the Market Environment
In class activity:
Design a candy bar and deal with the following:
Customer (target market) Health conscious population
The 4 P’s
Product A candy bar that has a lower calorie content, and contains an array of nutrients.
Place Sold at convenience stores, grocery stores, department stores, gas stations. But as
well, due to the fact that it is considered a health product, it would be sold in health food
markets/stores where health conscious people go to shop.
Promotion Commercial advertising: television (certain channels), internet (on health and
fitness websites), billboards, radio ads, coupons distributed from health food markets.
Price + Cost & Profit: A bit more expensive than other candy bars due to its
Focus: Analyzing the Marketing Environment
Controllable vs. Uncontrollable factors in marketing
The macro environment
How companies react to the marketing environment
Uncontrollable Factors: The Marketing Environment
The marketing environment consists of the uncontrollable forces that affect an
organizations ability to develop and maintain successful customer relationships. There are
two different environments that consist of different sets of factors:
Consumers/customers: consumer, business and organization Company skills: e.g. company capabilities, manufacturing capability and capacity,
finances, organization, image, brand name.
Competition: e.g. names, size, capabilities, likely courses of action. (The 4 P’s) You must
analyze direct and indirect competitors, by knowing their strengths and weaknesses. Use
competitive intelligence (CI) in order to collect and synthesize information. Ex:
McDonalds and Burger King
Corporate partners: suppliers, intermediaries, partners, distributers, retailers. Important:
competences and current capabilities, strategies, and their 4 P’s. ex: McDonald’s and
their bun provider.
Cultural environment consists of institutions and other forces that affect a societies basic
values, perceptions, and behaviors. Ex: more chocolate on valentines day