1MA3 Midterm - Chapter 3

Analyzing the Marketing Environment

What is the purpose of analyzing the marketing environment?

To monitor and study factors that influence new product or service ideas.

What analysis is foundational for assessing strengths and weaknesses in marketing?

SWOT analysis.

What are the two main environments that influence consumers?

Microenvironment and macroenvironment.

What does value-based marketing aim to achieve?

To provide greater value to consumers than competitors offer.

What is a microenvironmental factor that significantly affects consumers?

Competition.

How do corporate partners influence marketing strategies?

They collaborate with firms to produce and market products successfully.

What are the macroenvironmental factors that marketers must consider?

Culture, demographics, social/natural trends, technological advances, economic situation, and political/legal environment.

What is the definition of culture in marketing?

Shared meanings, beliefs, morals, values, and customs of a group that influence buying behavior.

How does country culture affect marketing strategies?

It influences what, why, how, where, and when consumers buy products.

What is a regional subculture?

A group within a country that reacts differently to cultural rituals and product categories.

What are demographics in the context of marketing?

Characteristics of human populations used to identify consumer markets, such as age, gender, income, race, and ethnicity.

What is a generational cohort?

A group of people born in the same generation who share similar purchase behaviors.

What income classifications exist in Canada?

Upper class, middle class, working class, and underclass.

How does education level relate to consumer behavior?

Higher education levels typically lead to better jobs and higher incomes, influencing purchasing decisions.

What role do women play in purchasing decisions?

Women make the majority of purchasing decisions and influence most of the remainder.

What is the significance of understanding consumer demographics?

It provides a snapshot of the typical consumer in a specific target market.

How can marketers anticipate trends?

By monitoring market trends and responding to consumer needs.

What is the impact of greater competition in a market?

It may lead to more choices for consumers, influencing their buying decisions.

What is the role of company capabilities in the marketing environment?

They affect how well a firm can satisfy customer needs and match its core competencies.

What is the CDSTEP framework in marketing?

It stands for Culture, Demographics, Social/Natural, Technology, Economic, and Political/Legal factors.

How do cultural differences manifest in consumer behavior?

They can influence preferences, spending habits, and reactions to marketing strategies.

What is an example of how regional subcultures affect consumer behavior?

A resident of Quebec may prefer different food purchasing habits compared to a resident of Ontario.

Why is it important for marketers to consider gender in their strategies?

Women influence a significant portion of purchasing decisions, necessitating gender-sensitive marketing.

What is an example of a company that successfully bridges cultural gaps in advertising?

Coca-Cola, which uses similar advertising across different countries.

What do marketers need to understand about ethnic groups?

Marketers must understand the culture, values, and spending patterns of various ethnic groups to effectively communicate and serve them.

What was the significance of Sephora's campaign during National Indigenous History month?

Sephora's campaign featured entirely Indigenous actors and crew, highlighting the importance of representation in marketing.

How much do ethnic groups spend on retail goods and services?

Ethnic groups are estimated to spend more than $42 billion on retail goods and services.

What strategic acquisition did Loblaw make to reach the Asian market?

Loblaw acquired T&T Supermarket in 2009 to reach the Asian market.

What technological advancements have improved product and service value?

Technological advances have greatly accelerated, providing consumers constant internet access and enhancing their shopping experience.

How does Netflix utilize technology to enhance user experience?

Netflix uses advanced technology to suggest movies and develop new content based on user preferences.

What features does Shoppers Drug Mart's app offer to customers?

The app allows customers to access new flyer offers, load personalized coupons, create shopping lists, order prescription refills, and set reminders.

What is a promising application of AI in marketing?

Visual search is a promising application of AI that helps marketers understand consumer preferences.

What role do robots play in the retail marketplace?

Robots are performing tasks previously done by humans and are being experimented with for product delivery via drones or driverless cars.

What economic factors do marketers monitor?

Marketers monitor inflation, foreign currency exchange rates, interest rates, and recession as they affect consumer spending.

What is inflation?

Inflation is a persistent increase in the prices of goods and services, leading to a decline in purchasing power.

How do foreign currency fluctuations affect consumer spending?

When the Canadian dollar increases in value compared to the U.S. dollar, Canadian exports become more expensive for Americans, affecting spending.

What do interest rates represent?

Interest rates represent the cost of borrowing money, which consumers must pay back along with accrued interest.

What defines a recession?

A recession is an economic downturn where growth is negative for at least two consecutive quarters, leading to decreased spending and increased unemployment.

How do consumers typically alter spending patterns during a recession?

Consumers postpone big-ticket purchases and seek better deals for necessary items during a recession.

What are some social trends influencing consumer values?

Social trends include sustainability, climate change action, health and wellness, diversity, inclusion, and gender equality.

What is green marketing?

Green marketing involves firms strategically supplying environmentally friendly products to meet consumer demand.

What challenge do firms face regarding environmental claims?

Firms may face skepticism about whether they genuinely improve the environment or are merely marketing products as green for profit.

What societal issue is highlighted by the fast fashion industry?

The fast fashion industry struggles with consumer concerns about the sustainability of its production processes.

What is a significant concern regarding consumer privacy?

Consumers worldwide increasingly sense a loss of privacy in the digital age.

What challenges do marketers face in a time-poor society?

Marketers struggle to capture attention due to the abundance of media options and the ability of consumers to skip ads.

What role does food play in social trends?

Food defines social trends and constitutes a major market, with niches for specialized options like organic foods.

What health concern affects a significant portion of Canadian adults?

In Canada, 63.5% of adults are categorized as obese or overweight.

How can exchange rates impact travel costs?

A less favorable exchange rate between the Canadian dollar and the Euro can lead to higher travel costs than initially budgeted.