Chp 3 - Analyzing the Marketing Environment

consumers microenvironment

company → microenvironment → corporate partners → competition → consumers

company capabilities

• 1st factors that effects the consumer (the firm itself)

• Successful marketing firms focus their efforts on satisfying customer needs that match their core competencies  

competition

Significantly affects consumers in the MICROenvironments  

apple vs samsung

corporate partners

• Few firms compete in isolation 

Ex. Automobile manufacturers, very competitive environment 

• Supplier relationships necessary to produce automobiles successfully   

consumers macroenvironment [CDSTEP]

• culture

• demographics

• social/natural

• technology

• economic

• political/legal

culture

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

country culture

artifacts, behaviour, dress, symbols, physical settings, ceremonies, language differences, colours and tastes, and food preferences

regional subculture

The region in which people live in a particular country affects the way they react to different cultural rituals, or even how they refer to a particular product category

demographics

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

age, ethnicity, income, gender, race

generational cohort

A group of people of the same generation

• often have similar purchase behaviours because they have shared experiences and are in the same stage of life

Gen Z

known as digital natives

The majority of Gen Z shoppers cite social media ads as the biggest influence on their purchasing behaviour. Social justice is an expectation, and Gen Z demands that brands take action and give back

Gen Y

millennials or the “echo boom” generation

grew up in a more media-intensive and brand-conscious era than their parents. They are more skeptical about what they hear in the media, which makes marketing to this group even more challenging

Gen Yers are defined by their expectations regarding the work world and for being savvy digital consumers

Gen X

people born between 1965 and 1980

Gen X is the first generation of latchkey kids (those who grew up in homes in which both parents worked)

Having grown up in times of economic recession, they are more likely than previous generations to carry higher debt loads, travel the world, and move far away from their parents.

Baby Boomers `

born between 1946 and 1964

largest cohort in Canada

upper class consumers

• more affluent, spending not influenced by economic conditions  

• High discretionary incomes and tend to purchase luxury items  

• To have an excess income of $226000 is top 10% of Canadians 

middle class consumers ($41,707 - $100,260)

• Majority on higher end 

• Afford a good life 

• Careful spenders, value conscious  

• 38% of Canadians  

working class ( > $41,707)

• families rep 14% of pop & earn $17267-$41707 

• 20% Canadians spend five or six times more in every shopping category than 20% of p

why is ethnic demographic shift important for marketers

The challenge is for marketers to understand the culture, value, and spending patterns of the various groups and determine the best way to communicate and serve them

technological advancements

technological changes that have contributed to the improvement of the value of both products and services in the past few decades  

• Accelerated through decades 

• Mobile devices enhance customer experience making it easier to interact w manufacturer and retailer  

 

AI

Solutions that rely on computer systems to perform tasks requiring human intelligence, such as speech recognition, decision making or translations  

• Increasing debate of hype or useful: Already being experimented w for systems reliant on human intelligence: speech recognition, decision making or translations  

• Potential to fast-track sustainability in carbon intensive industries  

• Ex. AI with Maplesoft -> Helping students solve math problems  

• use it for “advanced customer segmentation, media selection and buying” and customer engagement

green marketing

strategic effort by firms to supply customers with environmentally friendly merchandise