Class Notes (835,754)
Canada (509,376)
Business (3,286)
BU352 (159)
Lecture

Marketing- Ch 4.docx

7 Pages
119 Views
Unlock Document

Department
Business
Course
BU352
Professor
Shelley Mc Gill
Semester
Fall

Description
Chapter 4: Analyzing the Marketing Environment - By meeting Customer needs and monitoring the environment in which a firm operates, a marketer can identify potential opportunities - To successfully market there are factors: o Microenvironment: firm itself, satisfying customer needs that match their core competencies o External Environment: SWOT, opportunities o Relationships with Corporate Partners  Parties working along with the focal firm (suppliers, deliveries etc)  Making efficient manufacturing systems  Just in Time Inventory System (JIT): firm gets inventory just in time for it to be used o Understanding the customers- centre of marketing- providing greater value  Needs and wants  Ability to purchase  How macroenvironment influences consumers (baby boomers and pharmaceutical companies making more lifestyle drugs, balding, weight) o Macroenvironmental Factors in the external environment MACROENVIRONMENTAL FACTORS - Aspects of the external environment that affect a company’s business (CD STEP) o Competitors o Demographics o Social and Cultural Issues o Technological Advances o Economic Situation o Political/Regulatory Environment Competitors - what are competitors doing, how will they behave, how will they react, how can we beat them - Must understand their firm’s competitors’ o Strengths, weaknesses, likely reactions to the marketing activities their own firm undertakes o Predicting new competitor product launches – to develop a similar product o Anticipating competitor marketing campaigns- to communicate to consumers in a different way - Firms use competitive intelligence to collect info and compare their position with their rivals Competitive Intelligence: Used by firms to collect and synthesize information about their position with respect to their rivals; enables companies to anticipate market developments rather than merely react to them. Also known as business intelligence - Strategies to gather CI include: o Looking at competitive stores’ merchandise, prices, and foot traffic o Reviewing competitor’s public materials (websites, press releases, industry journals, annual reports, subscription databases, permit applications, patent applications, tradeshows o Interviewing customers, suppliers, partners, or former employees o Analyzing a rival’s marketing tactics, distribution practices, pricing, hiring needs - May lead to ethical dilemmas Demographics - Countable characteristics of human populations and segments, especially those used to identify consumer markets such as age, gender, income, and education - Ex. ACNielsen collects tv viewership and sells it to firms so advertisers can choose the best shows to advertise on (ex. Jersey Shore. MTV if want teen market) - Demographics provide a “snapshot” of the typical consumer in a specific target market How firms use demographics to assess their customers’ needs and better provide them value: Generational Cohorts - 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 o Ex. Baby boomers (1946-1964) and Generation Xers (1965-1976) both enjoy products that foster an easy lifestyle. Boomers enjoy them because they grew up with a casual style and are trying to maintain their youth. GenXers enjoy it because they are less impressed with symbolism and consumption. - 5 major groups of cohorts o Seniors (before 1946) o Baby Boomers (1946-1964) o Gen X (1965-1976) o Gen Y (1977-2005) o Tweens (1996-2000) Seniors - North America’s fastest growing generational cohort; people aged 63 and up - From 1981-2005, seniors will grow from 2.4 million to 4.2 million - In 2026, projected to reach 8 million, 21% of Canadian population - Large segment to market to - Marketing trends: o More likely to complain o Need special attention o Take time browsing before a purchase o Have more time to shop and more money to spend o Used to be conservative spenders as saving money for children o Spending more money now o Main Big Purchases: Travel, second homes, luxury cars, electronic equipment, investments, home furnishings, clothing, don’t need basics usually o Like made in Canada items and recognizable brand names (what they’re used to), quality, value, classic styles o Loyal, value, hassle free shopping, quality demanding, convenient locations Baby Boomers - Traits include: individualistic, prioritize leisure time, think they will always be able to take care of themselves, obsession with obtaining youth, love rock n’roll - Quest for youth in both attitude and appearance - Big market for anti-aging products - Adventure based vacations, salons, doing lots of things to feel young Generation X - First generation of the Latchkey kids- those who grew up in homes in which both parents worked - Many economic recessions, more likely to be unemployed, carry more debt, more likely to live longer with their parents - Tend to wait to get married, buy houses etc, therefore have more spending power - Demand convenience, believe less about what advertisements say - Hard to market because they are untrustworthy, believe word of mouth and referrals more - Knowledgeable about products, risk adverse (bc shopping at a young age because parents were working) - Less interested in status brands, don’t see the point Generation Y - Biggest cohort since boomers - Echo boom - Media intensive and brand conscious era - Sceptical about what they hear in the media - Internet, healthy eating, technology – savvy, love digital electronics - Brought together by internet Tweens - Have immense buying power - Consume like teenagers although they make look like children - Strong influence on family purchases - Spend mostly on food, drinks, electronics (cell phone, computer, music players) - Learn about products through TV and friends and internet - ¾ tweens make joint shopping decisions with parents - Speedy, internet and technology is so engrained in them - Easily become bored so need to engage quickly with sincerity - Have little of their own money so very value conscious Generational Cohort Comparisons Baby Boomers Gen X Gen Y - Diversity as a cause - Accept diversity - Celebrate diversity - Idealistic - Cynical - Optimistic/realistic - Mass movement - Self-reliant - Self-inventive - Conform to rules - Reject rules - Rewrite the rules - Killer job - Killer life - Killer lifestyle - Became institutions - Mistrust institutions - Irrelevance of - Tv - PC institution - Have technology - Use technology - Internet - Task-technology - Multitask - Assume technology - Ozzie and harriet - Latch key kids - Multitask fast - Other boomers - Friend-not family - Nurtured - Friends-family Income - Median income of families was $58,300 - Upper class o
More Less

Related notes for BU352

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit