Analyzing the Marketing Environment
A Marketing Environment Analysis Framework
Consumer is the centre of all marketing efforts.
Goal of value-based marketing is to offer greater value than competitors requiring that the marketers view the
business from a customer’s perspective
Successfully Leveraging Company Capabilities – must focus efforts on satisfying customer needs that match
core competencies of the business; involves categorizing an opportunity, and if attractive assess whether it can
be part of the company’s core competency.
Building Relationships with Corporate Partners – must rely on other parties to supply/deliver components.
Just-in-time Inventory Systems are designed to deliver less merchandise more frequently than traditional
inventory systems in an effort to keep inventory costs down
Aspects of the external environment that affect a company’s business such as:
o Company Capabilities: the firm itself should focus their efforts on satisfying customer needs that match
their core competencies.
o Competition: marketers must understand their firm’s competitors, including their strengths,
weaknesses, and likely reactions to the marketing activities their own firm undertakes.
Competitive Intelligence – used to collect and synthesize information about their position with
respect to their rivals; enables companies to anticipate market developments than simply react
Review public materials, interview customers, analyze rival’s marketing tactics
o Corporate Partners: few firms operate in isolation; parties that work with the focal firm are its corporate
Culture: the shared meanings, beliefs, morals, values, and customs of a group of people
o Country Culture entails easy-to-spot visible nuances that are particular to a country, such as dress,
symbols, ceremonies, language, colours, and food preferences, and more subtle aspects which are
trickier to identify.
o Regional Subcultures the region in which people live in a particular country affects the way they react
to different cultural rituals or how they refer to a particular product category.
Demographics: refer to the countable characteristics of human populations and segments, especially those
used to identify consumer markets such as age, gender, income, ethnicity and education.
o Generational Cohorts – a group of people from the same generation who typically have similar
purchase behaviours because they have shared experiences and are in the same stage of life.
Seniors – North America’s fastest growing group, 65+. Spending has increased; like value,
quality, and classic styles, loyal, and willing to spend, demand hassle-free shopping; prefer to
buy few high quality items
Baby Boomers – people born after WWII; are between the ages of 48 and 66; individualistic,
prefer leisure time, have a feeling of economic security even though they spend carelessly
(believe they can take care of themselves), obsession with maintaining youth and love to rock
Gen X – people between the ages of 36 and 47; 5mil/15% of Canadian population; more likely
to be unemployed, carry high debt loads, more likely to live with their parents; high b