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Chapter 3

MKT 100 Chapter Notes - Chapter 3: Baby Boomers, Terrorist Threats, Competitive Intelligence


Department
Marketing
Course Code
MKT 100
Professor
Laila Rohani
Chapter
3

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Marketing: MKT100 Chapter 3 Notes
Ch. 3: Analyzing the Marketing Environment
Microenvironmental Factors
1. Company Capabilities
- The company itself. Firms focus on satisfying customers to match their core competencies.
2. Competition
- Greater competition could mean more choices for customers, which influences buying
decisions.
- Marketers must understand the competitors’ strengths, weaknesses, and reactions to market
activities
- Competitive Intelligence (CI) is used to collect and synthesize information about their position
with respect to their rivals. It enables companies to anticipate changes in the marketplace
rather than just reacting to them.
3. Corporate Partners
- Parties that work with the focal firm are its corporate partners
- Firms usually rely on other companies’ resources, products or services to conduct their
operations and production
Macroenvironmental Factors
1. Culture
- Broadly defined as the shared meanings, beliefs, morals, values, and customs of a group of
people that gets passed down from generation to generation through words, literature and
institutions that are learned over time
- Country Culture entails easy-to-spot visible nuances that are particular to a country (i.e. dress,
symbols, ceremonies, language, colours, and food preferences
- Regional subcultures are a region in a particular country affects the way they react to different
cultural rituals, product category
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2. Demographics
- Indicate the characteristics of human populations and segments, including those to identify
consumer markets
- Provides an easily understood snapshot of the typical consumer in a specific target market
Generational Cohorts groups of people of the same generations with similar purchase
behaviours because of shared experience and same stage of life
Tweens not quite teenagers (between 9 12 years old).
o Buying power estimated at $2.9 billion in Canada and influence $20 billion
annually
o Learn about new products on TV food, drinks, electronics, clothing
o First generation born after the emergence of the Internet
o Value conscious
Generation Y the next baby boom (echo boom) between 13 32 years old
o Older half grew up in prosperous times but recent economic downturn leaves a
mark
o Terrorist threats and security concerns have lasting impact but its unclear how it
shapes consumer behaviour and values
o Impacted by Internet and technology same way TV impact those in the
Depression generation
o Respect for ethnic and cultural diversity; independent and autonomic
o Don’t respond to market “hype”, like personalization in products, responds well
to humour, irony and the truth
o Tastes and preferences are evolving
Generation X small generation between 36 47 years old
o Reached adulthood in harder times and likely affected by divorce and AIDS
o First generation to be raised in dual-income homes (Latch-key kids)
o Friends viewed as family; less willing to make sacrifices
o Moving into family life stage in life; better at saving money
Baby Boom Generation between 48 60 years old
o Shaped our society and economy throughout their lifetime
o Grew up in one of the most prosperous times in history (after WW2)
o “Me” generation, focused on self-improvement rather than self-sacrifice
o Focused on the present, career oriented, highly educated, “above the law”
o They prize holding onto youth SUVs, fitness, vitamins, herbal remedies
o Bio Chemistry dying hair, anti-age creams, tummy tucks, eyes lifts and Botox
Seniors Generation 65 years old and over]
o Grew up in traumatic times which affect spending habits
o Built suburbs and malls; developed miracle vaccines
o Goals accomplished through hard work and self-sacrifice
o Allegiance to their country and respect for authority
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