Marketing- Chapter 4
Marketing Environment Analysis Framework : Marketers have become more aware of
recent changes in what their customers want with regard to environmentally friendly programs and
products and have adapted accordingly to meet those needs.
Pay close attention to customer needs and monitor the environment in which a firm operates
Identify potential opportunities
Many marketers get idea for new products from monitoring and studying the marketing
Analyzing marketing environment helps marketers assess their continued strengths or any
weaknesses resulting in the changing marketing environment
Consumer is the center of all marketing efforts and is directly influenced by the
o Includes influences such as competitors, demographics, social and cultural,
technological, economic, political and legal factors
o Firms should look at entire business process form consumers view
o Monitor macroenvironment to determine how such factors influence consumers and
how they should respond to them.
Successfully Leveraging Company Capabilities: First factor that influences the customer is the
Focus marketing efforts on satisfying customer needs that match the firms core competencies.
Marketers can use an analysis of the external environment, like SWOT to categorize
opportunities as either attractive or unattractive given the firms core competencies
Building relationships With Corporate Partners: Few firms operate in isolation, important to
build strong relationships with other company’s within the supply chain to effectively and efficiently
provide products to the ultimate consumer
JIT- Inventory Systems: Inventory management system designed to deliver less
merchandise on a more frequent basis than traditional inventory systems. The
firm gets the merchandise “Just in Time” for it to be used in the manufacturing
of another product.
Macroenvironmental Factors: Aspects of the external environment that affect a company’s
business such as competitors, demographic, social, cultural, technological, legal, economic, political and
regulatory factors. Having an understanding of these factors is critical for success
Competitors: Critical that firms understand their competitors. Including things like their
strengths/weakness and likely reactions to marketing activities.
Competitive Intelligence: Used by firms to collect and synthisize information about their
position with respect to their rivals; enables companies to anticipate market developments
rather than merely react to them.
o Strategies for collecting CI:
Reviewing public materials including websites, press releases, journals,
annuals reports etc. Interviewing Customers, suppliers, partners or former employees
Analyzing a rivals marketing tactics, policies, distribution practices etc.
o CI Regarded as necessary function in today’s dynamic markets but certain methods
of obtaining it have come under ethical scrutiny.
Demographics: Indicate the countable characteristics of human populations and segments , especially
those used to identify consumer markets. Gender, income, education, etc. Demographics provide an
easily understood “Snapshot” of the typical consumer in a specific target market.
Generational Cohorts: A group of people of the same generation. They have similar purchase
behaviours because they have shared experiences and are in the same stage of life.
Cohort Tweens GenY GenX Babyboomers Seniors
Range of 1996-2000 1977-1995 1965-1976 1956-1964 Before 1946
Immense buying 20% population 14% population Born After Make up Canada’s
power Echo boom, grew Latchkey children WW2 Fastest growing
Parents and up more media who grew up in Individualistic group 13.1% of
grandparents intensive and homes with 2 Importance of population
intensely brand working parents leisure time More likely to
focussed on conscientious More likely to be Quest for youth complain, need
needs of their Sceptical about unemployed, Believe they special attention
children and what they hear carry debt, live will always be etc.
spend 40% of Internet and tech with parents for Spending money
able to take
income on them savvy longer period of care of on travel, second
Consume like Prefer Digital time themselves due homes, luxury
teenagers electronics Demand to economic cars, investments
Spend money Similarities convenience security etc.
on food, Value quality,
amongst cohort Less likely to Slightly careless
clothes, attributed mostly believe adds with spending classic styles,
electronics to internet Prefer word of Constantly demand hassle
Learn about Use web to spot mouth growing market free shopping
products mainly trends in one advertising from Typically loyal and
form TV and country and people they willing to spend
friends market them in know and trust
Market through others
TV or internet Income: Canadians may be classified into distinct groups based on their income
Some marketers choose to target only to the affluent populations segments, and others have
success marketing to the working class by delivering value such as Wal-Mart
Upper Very affluent, spending patterns not influenced by economic conditions
High discretionary incomes and tend to purchase luxury items
Family income usually in excess of $70,000
Highly educated, work in executive and professional roles