Management and Organizational Studies 2320A/B Chapter Notes - Chapter 3: Patent Infringement, Westjet, Air Canada
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Chapter 3: Analyzing the Marketing Environment
A Marketing Environment Analysis Framework
Microenvironmental Factors
• Company capabilities
– Core competency = satisfying customer needs that match their core capabilities
– Knowledge, facilities, patents, technology, people etc
– Applied to→ Target markets, products etc.
• Competition
o Identify and analyze direct and indirect competitors
o Know strengths & weaknesses
o Competitive Intelligence (CI) used to collect and synthesize info
Competitive intelligence: collect and synthesize information about their position with
respect to their rivals
– Greater competition means greater choice for customers
– Understanding competitors is crucial
– Anticipate changes rather than reacting to them
– Strategies
– reviewing public material like websites
– interviewing customers, suppliers, partners, former employees
– analyzing marketing tactics
Ethical and legal scrutiny
-Samsung sued for patent infringement by Apple - was instructed to pay $1 billion in damages
but a year later the US international trade commission overturned the case
-Air Canada against WestJet - WestJet used password of former Air Canada employee to access a
website managed by Air Canada to download confidential information
Adapt product/services to fit
environment. Heart of the analysis is the
consumer
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• Corporate Partners
o Firms are part of alliances – few work in isolation
o Align with suppliers, corporate partners etc.
Macroenvironmental Factors
Culture:
– Culture: Shared meanings, beliefs, morals, values and customs of a group of people
– Transmitted by words, literature and institutions
– Passed down from generation to generation
– Learned over time
– Country Culture vs. Regional Subculture
o Country Culture visible nuances that are particular to a country, like dress, symbols,
physical settings, ceremonies, food preferences + subtle nuances
BMW - bridge cultural gap
o Regional Subcultures
resident of Quebec is 25% less likely to buy a hot prepared meal
pop/soda/soft drink
→promotional material that transcends regional boundaries can be difficult
Demographics
Demographics: Characteristics of human populations, segments, especially those used to
identify consumer markets
o Gender
o Ethnicity
o Age
Generational Cohorts – A group of people of the same generation
→have similar purchase behavior because they have shared experiences
Tweens: not quite children, not quite teenagers (9-12)
– immense buying power $2.9 billion in Canada | $200 billion in US
– food and drinks mainly (in Canada)
– speed!
– digital natives
– important to constantly engage them (get bored quickly)
– value conscious
– affinity for similar/same brands as parents
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Document Summary
Core competency = satisfying customer needs that match their core capabilities. Identify and analyze direct and indirect competitors: competition, know strengths & weaknesses, competitive intelligence (ci) used to collect and synthesize info. Competitive intelligence: collect and synthesize information about their position with respect to their rivals. Greater competition means greater choice for customers. Anticipate changes rather than reacting to them. Analyzing marketing tactics interviewing customers, suppliers, partners, former employees. Samsung sued for patent infringement by apple - was instructed to pay billion in damages but a year later the us international trade commission overturned the case. Air canada against westjet - westjet used password of former air canada employee to access a website managed by air canada to download confidential information. 2: corporate partners, firms are part of alliances few work in isolation, align with suppliers, corporate partners etc. Culture: shared meanings, beliefs, morals, values and customs of a group of people.