Download BACK

Chapter 2
The Marketing Environment
Learning Objectives
• Understand the importance of monitoring
change in the marketing environment
• Describe how trends in the demographic,
socio-cultural, economic, and technological
environment affect marketing
• Recognize the impact competition has on
companies and their marketing programs
• Understand the regulatory forces that
encourage free market competition, and
protect consumers from questionable
marketing practices
1
Environmental Change
The
Internet
Changed the way the
consumer:
• Collects information
• Communicates
• Contributes
2
Marketing Environment
Changes
Opportunities
Awareness of
changes
Thwart threats
3
Marketing Environment
4
Marketing Environment
The knowledge from a marketing
environmental scan  Relevant
products, services, and ideas
5
Demographic Forces
• Statistics Canada provides access to
demographics information
• Companies can complete their own
demographics research
6
Demographic Forces - Age
Aging Population
People 50+ control 75% of
Canadian household net worth
7
Demographic Forces
8
Demographic Forces – Diverse
Generations
Baby Boomers
• 60% of consumer goods and service
expenditures
• Have redefined the concept of aging
9
Demographic Forces – Diverse
Generations
Generation X
• 12% of the population
• Not brand loyal
• Self-reliant
• Entrepreneurial
• Educated
10
Demographic Forces – Diverse
Generations
Generation Y
• 27.5% of the population
• Technology and sports
11
Demographic Forces Urbanization
12
Demographic Forces – Ethnic
Diversity
• 2/3 of Canada’s population growth is
due to immigration
13
Demographic Forces – NonTraditional Families
Changes in family structure:
• More common-law relationships
• Single-parent families
• Blended families
• Same-sex marriages
14
Socio-Cultural Forces
• Marketers monitor socio-cultural forces
so they can capitalize on new
opportunities
15
Socio-Cultural Changes
•
•
•
•
Ethnic foods
Health and fitness
Environmental awareness
Changing gender roles
16
Economic Forces
• A change in the economy impacts a
person’s ability to purchase
17
Economic Forces
Key economic indicators:
• Inflation rate
• Unemployment rate
• Economic growth rate
18
Microeconomic Forces
• Gross income
• Disposable income
• Discretionary income
19
Technological Forces
• What new inventory are being
introduced and how consumers are
accepting these technological forces
20
Technological Advances
•
•
•
•
•
•
•
•
Internet and search engines
Email, text, and instant messaging
Social networking sites
Video sharing sites
Downloading
Blogs
Online TV
Cell phones
21
Technological Forces
22
Competitive Forces
• An analysis of direct competitors and
indirect competitors is necessary in
designing a marketing strategy that is
responsive to competition
23
Competition
Types of Competitive Markets
24
Regulatory Forces
• A marketer must be aware of
regulations that affect how they do
business
25
Regulatory Groups
• Competition Bureau
• Canadian Radio & Television &
Telecommunications Commission
(CRTC)
• Advertising Standards Council (ASC)
• Canadian Marketing Association
(CMA)
• Better Business Bureau (BBB)
26
Marketing Environmental Scan
• The process of continually acquiring
information on events occurring
outside the organization to identify
trends, opportunities, and threats to
your business
BACK
27
Demographics
• The statistical data on a population
according to characteristics such as
age, gender, ethnicity, income, and
occupation
BACK
28
Baby Boomers
• People born between 1946 and 1964
BACK
29
Generation X
• People born between 1965 and 1976
BACK
30
Generation Y
• People born between 1975 and 1995
BACK
31
Socio-Cultural Forces
• Cultural values, ideas, and attitudes,
and society’s morals and beliefs
BACK
32
Economy
• The collective income, expenditures,
and resources that affect the cost of
running a business or household
BACK
33
Gross Income
• Total amount of money made in one
year by a person, household, or family
unit, including taxes
BACK
34
Disposable Income
• Balance of income left after paying
taxes that is used for spending and
savings
BACK
35
Discretionary Income
• Money that consumers have left after
paying taxes and buying necessities
BACK
36
Technological Forces
• Inventions from applied science or
engineering research
BACK
37
Direct Competitors
• Similar products sold in the same
category
BACK
38
Indirect Competitors
• Products competing for the same
buying dollar in a slightly different, but
related, category
BACK
39
Competition
• Alternative products that can satisfy a
specific market’s needs
BACK
40
Regulations
• Restrictions placed on marketing
practices by government and industry
associations
BACK
41