chapter2 , the marketing environment
12/16/2013 12:52:00 AM
Environment that affects marketing decision.
Marketers constantly monitor the marketing environment with a view to
capitalizing on new opportunities and thwarting potential threats.
Marketing environmental scan: is the process of continually acquiring
information on events occurring outside the org. to identify trends,
opportunities, and threats to a business.
-In 6 areas:
Demographic forces: age, gender, ethnicity, income, and occupation of a
group of people.
-Ensure marketing efforts are well placed in demographic change
Baby boomers: main reason for the greying of N.A
-born between 1946 and 1965
-average of 4 children
-interest in health, self-image, and retirement
-born between 1966 and 1974
-key influence in the market
-not as brand loyal and tend to be more self-reliant,
entrepreneurial, and better educated
-less prone to materialism and extravagance
-born between 1975 and 1995, as echo boom
-interesting in music, video games, sports, and
-influential as their baby-boom parents
Big city Dwelling: cities are growing much faster than rural areas; city
Centres are growing more slowly than the suburbs
Ethnic diversity: Canada is a multicultural country
create an interesting opportunities for marketers
-Growth in underdeveloped areas opportunities to expand
into foreign markets
Socio-cultural forces: cultural values, ideas, and attitudes, as well as
society’s morals and beliefs -Ex: relate to ethnic foods, health and fitness, the
environment, the role of women in society
Economic forces: a country’s economy as a whole
-significant change in the economy, impact on a household’s
income and ability to purchase.
-key economic indicator: inflation/unemployment/economic
growth rate and consumer confidence
-inflation: a period when the cost to produce and buy products
and services gets higher as prices rise
*prices rise faster than consumer income, consumer
purchasing power decrease.
-recession: a time of slow economic activity with two
consecutive periods of negative growth
*production levels decline, unemployment levels rise, less
money to spend.
Organization for economic Co-operation and development(OECD):
describe Canada’s growth