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Marketing- Ch 4.docx

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Shelley Mc Gill

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
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