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Chapter 3

Chapter 3 BU352.docx

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Wilfrid Laurier University
Dave Ashberry

BU352 Chapter 3 – Analyzing the Marketing Environment Week 2 A Marketing Environment Analysis Framework -Marketers who understand and manage the changes in their marketing environments are able to adapt their product and service offerings to meet new challenges and opportunities -Sometimes firms can even anticipate trends Microenvironmental Factors Company Capabilities -The first factor that affects the consumer is the firm itself -Marketers can use an analysis of the external environment, like the SWOT analysis to categorize an opportunity as either attractive or unattractive and, if it appears attractive, to assess it relative to the firm’s existing competencies Competition -Greater competition means more choices for consumers which influences their buying decisions -Competitive intelligence (CI) – used by firms to collect and synthesize information about their position with respect to their rivals; enables companies to anticipate changes in the marketplace rather than merely react to them -CI enables companies to anticipate changes in the marketplace rather than merely react to them -The strategies to father CI can range from simply sending a retail employee to a competitive store to check merchandise, prices, and foot traffic to more involved methods such as, -Reviewing public materials, including websites, press releases, industry journals, annual reports, etc. -Interviewing customers, suppliers, partners or former employees -Analyzing a rival’s marketing tactics, distribution practices, pricing, and hiring needs -Although CI is widely regarded as a necessary function in today’s world, certain methods of obtaining information have come under ethical and legal scrutiny Corporate Partners -Few firms operate in isolation – Ex. Car company relies on a sheet metal, tire manufacturer companies -Parties that work with the focal firm are its corporate partners Macroenvironmental Factors -Macroenvironmental factors – aspects of the external environment – culture, demographics, social trends, technological advances, economic situation, and political/legal environment (CDSTEP) – that affect companies Culture Culture -The shared meanings, beliefs, morals, values, and customs of a group of people -Our various cultures influence what, why, how, where, and when to buy Country Culture -Country culture – the 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 Regional Subcultures -The region in which people live in a particular country affects the way they react to different cultural BU352 Chapter 3 – Analyzing the Marketing Environment Week 2 rituals or even how they prefer a particular product category -Ex. A resident of Quebec is 25% less likely to buy a hot prepared or reheatable meal than a resident of Ontario Demographics -Demographics – characteristics of human populations and segments, especially those used to identify consumer markets, such as age, gender, income, race, ethnicity, and education Generational Cohorts -Generational cohort – a group of people of the same generation – typically have similar purchase behaviours because they have shared experiences and are in the same stage of life -Tweens – generational cohort of people who are not quite teenagers but are not young children either (Ages 9 to 12); they’re in between -Tweens spend their money mostly on food and drinks, electronics, and clothing -Tweens learn about new products from TV shows and friends -Generation Y – generational cohort of people between the ages of 13 and 32; the biggest cohort since the original postwar baby boom -More skeptical about what they hear in the media, which makes marketing to the group more challenging -Generation X – generational cohort of people between the ages of 36 and 47 -Possess considerable spending power because they tend to wait to get married and buy houses later in life -Baby boomers – generational cohort of people born after World War II; are between the ages of 48 and 66 -Quest for youth, in both attitude and appearance provides a massive market for anti-aging products, cosmetics, pharmaceuticals, and biotechnology -Seniors – North America’s fastest growing generational cohort; people aged 65 and older -Older people are not saving anymore and they see to be buying goods and services at the same pace as younger generations -They spend their money on travel, second homes, luxury cars, electronic equipment, investments, home furnishings, and clothing -Seniors tend to like “made in Canada” items and recognizable brand names,, value, quality, and classic styles Income -The mediam income of Canadian families in 2008 was approximately
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