MKTG 2030 Chapter Notes - Chapter 3: Baby Boomers, Market Environment, Mobile Marketing

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3 Mar 2015
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Scanning the Marketing Environment
World’s Third-largest Nation – Social Nation Created by Facebook
-Facebook currently has more than 900 million members
Facebook and the Influence of Environmental Forces
-Social forces: people became increasingly interested in social aspects of the internet
oPeople wanted to: get information, offer opinions, interact with people
-Economic forces: cost of wireless connectivity, Internet service and smartphones rapidly declined
oSocial networking was made affordable
-Technological advances: data storage, server speed, programming software made social networks
fast and convenient
-Competitive forces: helped provide alternatives and rush to expand
-Legal and regulatory forces: help develop privacy guidelines, governance rules and sustain an over-
watch of all corporations to protect the consumers and provide fair market opportunities
Where Social Networking and Facebook are Headed
-Virtual currency is created to allow payment for purchase of goods/services sold on the social network
Importance of Environmental Scanning
-Environmental scanning: continually
acquiring information on events occurring
outside the organization to identify and
interpret potential trends
oHelps marketers be aligned
with evolving marketplace
Tracking Environmental Trends
-Businesses are impacted when
consumption for specific products
fluctuates in the marketplace
-Need to identify the trends and
see why it is occurring
oSometimes marketers for a
specific industry may be
doing a better job at selling
their product/service
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oChange in consumption can be a result of change in consumer needs/wants
oShift in marketing items as just a product to marketing them as an experience
(Starbucks)
An Environmental Scan of Canada
-Trends can be a result of: growing diversity of a population, shift to experience economy, increasing
use of technologies
Social Forces
-Include demographics characteristics of the population and its values
Demographics
-Study of characteristics of the human population
oGender, marital status, income, ethnicity, population size
World Population at a Glance
-Increase in population happening in developing countries (Africa, Asia, Latin America)
-India may have the highest world population of 1.6 billion by 2050
-Number of people older than 65 will more than double in the future (shift in age structure)
oNumber of youth will grow at a much slower pace
-Global income levels and standards of living have been increasing
-Economic progress in developing countries will lead to growth in entrepreneurship
Canadian Population
-The population is growing older and more ethnically diverse
-Country experiences a declining birth rate; principal source of growth in population will arise from
immigration
-Niche markets based on age, life stage, family structure, location and ethnicity will become of great
value
Generational Cohorts
-Baby boomers: generation of those born between 1946 – 1964
oStarting to grow older, thus participation in the labour force and earnings have increased
oAccounts for majority of purchases in most consumer categories
oReceptive to anything that makes them look/feel younger
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-Generation X: incudes population of those brown between 1965 – 1976
oThese individuals are self-reliant, entrepreneurial, supportive of ethnic diversity and better
educated than previous generations
oAre saving, planning for retirement and taking advantage of financial plans much earlier
than boomers
oSoon going to become the parent market
-Generation Y (Millennials): anyone born between 1977 – 1994; period of increasing birth, referred to
as echo boom or baby boomlet
oExert influence on music, sports, computers, video games and mobile device
oIncludes recent and future 21 year olds that are beginning to take adult responsibilities
The Canadian Family
-Average family size is about 3 people
-Dual income and single-parent families are becoming a norm
-Blended family: one formed by merging into a single family of two previously separated units
Population Shifts
-Significant shift in Canadian population from rural to urban areas (more than 80% of Canadians are
urban dwellers)
-Census Metropolitan Areas (CMA): geographic labour markets having population of 100000+
Ethnic Diversity
-Major growth in other ethnic groups and visible minorities (more than 100 different ethnic groups
exist in Canada)
-Largest ethnic groups are South Asians, Chinese and African Americans
-Newcomers more inclined to settle in Toronto, Vancouver or Montreal
-Ethnic marketing: combinations of marketing mix that reflects unique attitudes, race or ancestry,
communication preferences and lifestyles of ethnic Canadians
oCan speak and communicate with customers in their native language
Culture
-Set of values, ideas, and attitudes that are learned and shared among the members of a group
Changing Attitudes and Values
-Attitudes towards work, lifestyles and consumption are evolving
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