Ch. 3 Analyzing the Marketing Environment

analyzing the market environment

• important to monitor internal and external environments

• technology influences consumers behaviours and demands

• businesses must rethink how they offer products and services

• keep an eye on additional long-term opportunities

marketing environment analysis framework

microenvironmental factors

• company

• competition

• corporate partners

company capabilities

• core competency = satisfy customer needs

• knowledge, facilities, patents, technology, people, etc.

  • applied to:

• target markets, products, etc.

competition

• identify and analyze direct and indirect competitors

• know strengths and weaknesses

• competitive intelligence (CI)

• used to collect and synthesize information

corporate partners

• firms are part of alliances, they don’t usually work in isolation

• align with suppliers, corporate partners etc.

macroenvironmental factors

CDSTEP

• culture

• demographics

• social / natural

• technology

• economic

• political / legal

culture

• shared meanings, beliefs, morals, values, and customs of a group of people

• transmission: by words, literature, institutions. passed down from generation to generation and learned over time

• country culture and regional subcultures

demographics

• characteristics of human populations and segments, especially those used to identify consumer markets

• age, generation cohorts, gender, income, education, race, and ethnicity

technological advances

• robotics (perform work that used to be human’s responsibility)

• internet of things (IoT) (emerges when multiple smart devices combine data they’ve collected help both companies and consumers)

• artificial intelligence (computer systems perform tasks that require human intelligence)

economic situation

• foreign currency fluctuations

• combined with inflation and interest rates affect a firm’s ability to market goods and services

political / legal environment

• competition act

• consumer packaging and labelling act

• food and drugs act

• access to information

• patent act

• North American Free Trade Agreement (NAFTA)

social and natural trends

• shape consumers values

• green marketing

• privacy concerns

• time-poor society

• efficient food distribution

• health and wellness concerns