Chapter Three: Analyzing the Marketing Environment
September 19, 2012
Baby Boomers: Generational cohort of people born after World War II; are between
the ages of 48 and 66.
Competitive Intelligence (CI): Used by firms to collect and synthesize information
about their position with respect to rivals; enables companies to anticipate changes
in the marketplace rather than merely react to them.
Country Culture: Entails easy-to-spot visible nuances that are particular to a
country, such as dress, symbols, ceremonies, language, colours, and food
preferences, and more subtle aspects, which are trickier to identify.
Culture: The shared meanings, beliefs, morals, values, and customs of a group of
Demographics: Characteristics of human populations and segments, especially
those used to identify markets, such as age, gender, income, race, ethnicity, and
Economic Situation: Economic changes that affect the way consumers buy
merchandise and spend money; see inflation, foreign currency fluctuations, interest
rates, and recession.
Foreign Currency Fluctuations: Changes in the value of a country’s currency
relative to the currency of another country; can influence consumer spending.
Generation X: Generational cohort of people between the ages of 36 and 47.
Generation Y: Generational cohort of people between the ages of 13 and 32; the
biggest cohort since the original post-war Baby Boom.
Generational Cohort: A group of people of the same generation – typically have
similar purchase behaviours because they have shared experiences and are in the
same stage of life.
Green Marketing: Involves a strategic effort by firms to supply customers with
environmentally friendly merchandise.
Inflation: Refers to the persistent increase in the prices of goods and services.
Interest Rates: Represent the cost of borrowing money. Macroenvironmental Factors: Aspects of the external environment – culture,
demographics, social trends, technological advances, economic situation, and
political/legal environment (CDSTEP) – that affect companies.
Political/Legal Environment: Comprises political parties, government
organizations, and legislation and laws that promote or inhibit trade and marketing
Recession: A period of economic downturn when the economic growth of the
country is negative for at least a couple of consecutive quarters.
Seniors: North America’s fastest-growing generational cohort; people aged 65 and
Technological Advances: Technological changes that have contributed to the
improvement of the value of both products and services in the past few decades.
Tweens: Generational cohort of people who are not quite teenagers but are not
young children either (ages 9-12); they’re in beTWEEN.
- Assessing the firm itself.
- Successful marketing firms focus
their efforts on satisfying
customer needs that match their
- Greater competition means more choice for consumers, which influences their
- It is critical that marketers understand their firm’s competitors, including their
strengths, weaknesses, and likely reactions to the marketing activities their own
- Firms use competitive intelligence to collect and synthesize information about
their position with respect