ARBUS 2, 4, 6

Canada's Anti-Spam Legislation (CASL)

• the federal law dealing with spam and other electronic threats

• Companies have to:

  • Obtain your consent

  • Provide identification

  • Provide an unsubscribe mechanism

• Is difficult to enforce for spammers outside of Canada

National policy

• Implemented high tariffs to encourage east to west trade

• Was used to encourage Canadian to Canadian businesses

Historical Infrastructure in the Economy

Government built railway to connect the country

Canada's Mixed economy

• Economic system in which some allocation of resources is made by the market and some by the government

• A mixture of capitalism and socialism

How government affects business

• Crown corporations

• Laws and regulations

• Tax and financial policies

• Government expenditures

• Purchasing policies

• Government services

Crown corporations

• Companies owned by the federal or provincial government

  • Provide services not offered by businesses

  • Bail out a major industry in trouble

  • Provide special services not otherwise being provided by private sector

• Canada Post, OLG, LCBO

Privatization

selling publicly owned corporations

Laws and regulations

• Created by politicians/Political parties in power who should be considered when laws and regulations are created, modified, approved and implemented

• Business law refers to rules, statutes, codes, and regulations that are established to provide a framework within which businesses must be conducted AND that are enforceable by court action

• Federal, provincial, and municipal levels

Deregulation

government withdrawal of laws and regulations that hinder competition

Competition Bureau

Responsible for the administration and enforcement of a number of acts designed to protect consumers and promote fair competition

Competition act

• Administered by federal government

• Ensures mergers of large corporations will not restrict competition and that there is fair competition exists among businesses

• Provides consumers with competitive prices and products choice

• Health Canada

• Responsible for:

  • Establishing standards for the safety and nutritional quality of all foods sold in Canada

  • Regulations related to food packaging, labeling and advertising

• Food and drugs act

  • Enforcement is done by the Canadian Food Inspection Agency

  • Monitors both exports (to maintain Canada's reputation internationally) and imports

• Agency is also responsible for regulations related to food packaging, labelling, and advertising

Tax and financial policies

• John Maynard Keynes model vs. Friedrich Hayek model

• World chose Keynes's model

  • Present is now accustomed to spending as a result

  • Model did bring end to recession and fixed problems during that time

  • Canada is one of countries with highest debts

Keynes Model - top down approach

• Need for government oversight

• Future is uncertain

  • Act immediately, cant wait for market

• Need for a quick spark

  • To spark the economy

• Inject money into economy will cause consumerism to spend

Hayek's model - bottom up approach

• Let economy do the job

  • Don’t bail out losers

• Felt we cant afford Keynes approach

• Business cycles - busts were necessary to correct booms, if no booms (created by government intervention) then no busts

• No real end to the spending of the alternative model

Fiscal policy

• Government efforts to keep the economy stable through increases in

  • Taxes

  • Government spending

  • Raise taxes or cut spending

  • National debt increases

Federal budget

• Comprehensive report that reveals government financial policies and priorities for the coming year

  • When  governments increases spending, it increases economy which can increase job opportunities

  • Opposite occurs when spending decreases

    • Incentives removed

    • Quality of healthcare decrease

    • Etc.

Notional debt

• Accumulation of government surpluses and deficits over time

  • Deficit: government spending > taxes collected

  • Surplus: government spending < taxes collected

• Annual deficits contribute to the national debt, as governments have to borrow to fund deficits

Monetary policy

• The management of money supply and interest rates

• Controlled by the government of Canada

• Overnight rate is used by Canadian banks to set the rate their loans and mortgages are based

What will be the impact of rising interest rates in the future?

• Rising interest rates will slow business activity and consumer spending

  • When the cost of borrowing goes up, businesses and consumers will borrow and spend less

  • The cost of servicing debt (i.e interest) increases leaving less money for businesses and consumers to spend u

The subprime mortgage crisis

• Subprime mortgages: loans targeted at people who do not qualify for regular mortgages

  • Their credit records not good enough or no credit history

• Interest rates increased - couldn’t afford payments

• Housing prices started to fall and couldn't afford to sell homes either - foreclosures

• Value of mortgage backed securities plummeted

• Lesson: not all regulation is bad

Government expenditures

• Government spends huge sums of money on. . .

  • Education

  • Healthy

  • Transportation systems

  • Payments to individuals

Financial aid

• Grants, loans consulting advice

• Help industries and companies

Purchasing policies

• Large purchasers and consumers of goods and services

• Can favour Canadian businesses

• Code of Conduct for Procurement

Government services

• Innovation, science, and economic development Canada (formerly industry Canada)

• Global affairs Canada (formerly foreign affairs, trade and development Canada)

four best practices can avoid common pitfalls as governments build needed infastructure

• develep projects with tangible and quantifiable benefits

• improve coordination of infastructure investments to account for network effects

• engage and align community stakeholders to drive inclusive economic growth\

• look to unlock long-term capita

Raging Bull Video

• Red bull had trouble entering Canadian market until Canada created new legislation for natural products

• whos responsibility is it to make sure that guidelines are being followed?

• If the company advertisies in any way a use that goes against the label, that is considered an illegal practice and can cause cases like the product to stop being sold

Truth about CBD Video

• CBD: cannabidiol

• A lot of CBD products are illegal and sold illegally

• Most stores are legal but many unsilenced stores have popped up because of demand

• Government has banned talk of talking about extensive health benefits of CBD (such as claiming it solves everything)

  • Or having health claims on packaging

• Even if CBD is safe, there is no regulations for black-markets

• Legal regulation has lots of paperwork and processes to confirm

bank of Canada: Count on Us

• Bank of Canada is also the banker for the federal government

• Canadians have confidence in our money

  • Money is protected from high inflation, counterfeiting, and into ensuring that we have a reliable financial system by the bank of Canada

• How do we know how much our money will buy in the future

  • As long as inflation is low and predictable, we can stay confident in our money

  • Low and stable inflation is our goal

  • The government and bank of Canada have a joint agreement to aim for an annual inflation rate of 2 per cent

    • This is called the inflation target

How is inflation kept in check

• Economists monitor and survey the international economic environment

• The bank of Canada sets the policy interest rate which influences commercial interest rates

• All this economic activity tends to push inflation up

  • Interest rate up, cool things down

  • Interest down, heat things up

• Bank of Canada's job is to oversee these large, complex systems that are used for making these financial transfers each and every day

• By having hard to counterfeit notes (cash) / trustable notes, a good operating system, and keeping inflation in check, Canadians can have confidence in their money

Marketing

• the process of creating, communicating, and delivering offerings that have value for customers

  • How you plan and present your product/services for a customer

• Marketing mentality is currently learn your customers expectations and exceed them

Market

• a group of people with unsatisfied needs and wants who have the resources and willingness to buy

• "Find a need and fill it"

The evolution of marketing

• Shift from helping the seller sell to helping the buyer buy

  • Consumer choice became more prevalent

  • Businesses needed to give a reason for customers to buy their product

Production era:

• From late 1800's to early 1900's

• Limited production capabilities

  • Demand > supply

• Mentality was produce as much as you could

• Consumer bought whatever they could

Sales era:

• From 1920’s to 1960

• Advancements in production processes led to mass production being born

• Production capacity and supply often exceeded immediate market demand

  • Supply > demand

• Focus shifted to selling and advertising

  • Businesses needed to start focusing on how to get customers to buy their excess supply

• Demand increased because soldiers from war returned and demand became high

Marketing concept era:

• From 1950's to 1990s

• Mentality was trying to find the right product for the customers

• A three-part business philosophy

  • Customer orientation

    • Idea of 'customer is always right' began

    • Find out what customers want and provide it

  • Service orientation

    • Aligns all sides of business to customer satisfaction

  • Profit orientation

    • Focus on profits rather than sales

      • "bottom line" = profit

      • "top line" = revenue

Market orientation era:

• From 1990s to 2020

• focused on the customer through

  • Collecting and sharing information throughout organization

  • Using information to create value, ensure customer satisfaction, and develop customer relationships

• Main reason for era was technology

• Companies made more personalized tactics to customers

  • Led to idea of loyalty from customers will lead to more sales

  • Its harder to find/replace new buyers

• Loyalty programs

• Customer relationship management (CRM)

The Social media influence

• TikTok and platforms have added on to the market era

• The ROI (return on investment) is five years for a business when using social media

How has social media impacted marketing and the role of marketers?

• Opportunities

  • Connecting and responding directly to customers (personalized/customized)

  • Consumer generated marketing

  • Cheaper/reduced marketing costs

  • Additional data

• Challenges

  • Needs to be maintained and managed (resources and time-dedicated staff)

  • Negative feedback in a very public forum (risk management)

Social media marketing era

• 2010s to 2020s

• Consumers engage with organizations and other consumers to share information, opinion, knowledge, and interests

• Heightened engagement level

Customer champions

• Businesses want to identify and sell to these people with obsessive interest

• These individuals often spread stuff word by word

  • These people are likely the ones willing to pay extra to try something new

Non profit organizations and marketing

• Charities

  • Need financial support to continue

• Churches

  • Experience an aging membership

  • Need newer members

    • Older membership can oppose new membership however

• politicians

Profit and charity

• Profit organizations can team up with charity programs

  • e.g., times raising money for camp day

  • Bells 'lets talk' program

• Cause marketing

  • Occurs when the charitable contributions of a firm are tied directly to the revenues generated from its product(s)

Marketing managers and the marketing mix

marketing managers must choose how to implement the four Ps of the marketing mix: product, price, place, and promotion. The goals are to please customers and make a profit

Product

• Any physical good, service, or idea that satisfies a want/need

  • Includes product enhancements

• Concept testing vs. test marketing

  • Concept: Involves describing the product and surveying to see if they like it

  • Test: Bringing samples to see if consumers will like it

• Using crowdsourcing for development

Price

• Money or other consideration exchanged for ownership or use of a good/service

• The money a customer is willing to pay for the product

• Sellers want to make sure they are making a profit

• Veblen goods

• Psychology

  • Setting a price that appears cheaper than it really is

  • e.g. 98 cents

Veblen goods

• A Veblen good is a good for which demand increases as the price increases, because of its exclusive nature and appeal as a status symbol.

• A Veblen good has an upward-sloping demand curve, which runs counter to the typical downward-sloping curve

• Is an outlier to the idea that expensive sells less

Place

• How to get your product to your customer

• Intermediaries make it easier for the consumer to buy

• Helping buyers buy

  • Amazon go - a new way to grocery shop

Promotion

• All of the techniques used to motivate customers  to buy

• Are super bowl ads worth it?

Marketing research process

1. Keep building relationship with customers to build loyalty

   1. Much easier to sustain than finding new customers

2. Collect data

3. Analyze the data into information that is actional-able

4. Choose which info to act on

Environmental scanning

Consumer market (B2C)

Individuals/households that want goods and services for personal consumption or use

• Business to business (B2B)

Individuals/organizations that want goods and services to use in producing other goods and services or to sell, rent, or supply to others

Business-to-Business (B2B) market

• Relatively fewer customers

• Size of business customers is relatively large

• Markets tend to be geographically concentrated

• Business buyers are generally more rational than consumers

• Sales tend to be direct

• More emphasis on personal selling

• Larger customers means bigger purchases/purchases more often

  • There are more consumers in numbers, but B2B can resell items

• Can be geographically located to be closer (place), close proximity makes it easy to sell or to build customer relations

The Consumer Market

• Consumer groups differ greatly in age, education level, income, and taste

  • Cannot fill needs of every group

Market segmentation

Process of dividing the total market into groups with similar characteristics

Target marketing

marketing directed at those groups an organization decides it can serve profitably

Segmenting the consumer market

• Geographic segmentation

  • Dividing by city, geographic area

• Demographic segmentation

  • Divided by religion, age, education, etc.

• Psychographic segmentation

  • Dividing market to lifestyle, personality, or attitudes interests

• Behavioural segmentation

  • Considers buying patterns and what benefits consumers

    • e.g, hair color, bus passes, usage rates

Niche marketing

finding small but profitable market segments and designing products for them

One to one marketing/customized marketing

• developing a unique mix of products for each individual consumer

  • Individualized towards consumer

Identifying the target market

• For each product below identify the target market:

  • Disposable diapers

• ***Remember: A market is a group of people with unsatisfied wants and needs who have the resources and willingness to buy

Relationship marketing

 keeping individual customers over time by offering new products that exactly meet their requirements

CRM systems

• Database that should capture contact information, past communication, purchases, preferences

  • Analysis of the data can help develop strategy to enhance customer satisfaction and encourage loyalty

    • Identify best customers or key segments

    • Customize communications

    • Monitor/assess effectiveness of marketing campaigns and promotions

Marketing mix influences

• Product

• Price

• Place

• Promotion

Customer decision making

• Sociocultural influences

  • Reference groups

  • Family

  • Social class

  • Culture

  • Subculture

Psychological influences

• Based on

  • Perception

  • Attitudes

  • Learning

  • Motivation

• E.g., Think of buying environmentally friendly products (eg. Compostable dog waste bags, eco-friendly packaging)

Consumer decision making

• Situational influences

• phycological influences

• sociocultural influences

Social media revolution Video

• Over 50% of the world population is under 30 years old

• Facebook has the biggest population over countries like india and china

• Social media = relationships

• The ROI of social media in your business will still exist in 5 years

• 93% of buying decisions are influenced by social media

• By 2018, video will account for over 2/3 of mobile usage

• Shrinking attention spans

• Every second two people join linkedin

  • That’s like the entire enrollment of  the ivy league joining linedin

Veblen good video

• Named after Thorstien Veblen who introduced the term conspicuous consumption

• Veblen good is one whose demand increases as its price increase

  • Consumers see it as a exclusive status symbol

• because demand goes down as price goes up, a Veblen good was an upward sloping demand curve

• Veblen goods are high quality coveted items

  • Designer

  • Brand identity

  • Luxury

  • Not at the store

• Goods are priced so high only the affluent can afford them

  • The higher the price, the less likely other consumers can afford them

  • And the more buyers perceive them to signal great wealth and sucesss

• If a veblen goods price decreases the demand will decrease because status conscious consumers will see it as less exclusive

The moving assembly line

• Henry ford

• Over 100 years ago

• Radical transformation of manufacturing

• Radical transformation of society

Canada Today

• Focus

  • Natural resources

  • Auto industry

    • Going through innovation

• Challenges

  • Dependence on US

  • Increasing globalization

    • Strengthening emerging markets like India and China

    • Businesses need to recess and make changes

Global competitiveness Rankings

• Two organizations prepare this:

  • World economic forum (WEF)

  • International institute for management development (IMD)

• These organizations set themselves to regulate business competitiveness

Canada's challenges

• Inadequate improvement in productivity

• Inadequate education/retraining of work force

• Foreign owned companies

• Inadequate spending R&D

Canada's solutions to challenges

• Making Canada more competitive

• Innovation

  • Government role

    • Tax credits and incentives

    • Government grants

    • Trade policy and regulations that expand trade corridors

  • Strategic partnerships

  • Role of business

    • Strengthen relationships (customers and suppliers)

    • Focus on quality

    • Practice continuous improvement (culture)

      • Want a culture driven by continuous improvement

Research and development (R&D)

• Work directed toward the innovation, introduction, and improvement of products/processes

  • Increases production capability

  • Improve product quality

  • Extend product range

• Innovation leads to increased productivity and group

How to improve productivity?

• Reduce cost of inputs

• Improve quality

• Eliminate waste

• Improve efficiency of production processes

  • Activity-based management

    • Reduce non-value-added processes

Lean manufacturing

• Production of goods using less of everything compared to mass production

  • Less

    • Human effort

    • Manufacturing space

    • Investment in tools

    • Engineering time to develop a new product

Flexible manufacturing

• Designing machines to do multiple tasks so that they can produce a variety of products

• Reduces downtime

• Respond to unique demands faster

Computer-aided design and manufacturing

• The use of computers to help create 3D diagrams, etc.

• Computer-aided design (CAD)

• Computer aided manufacturing (CAM)

• Computer-integrated manufacturing (CIM)

Mass customization

• Tailoring products to meet the needs of a large number of individual customers

Production

• Creation of goods/services using the factors of prodution

  • Land, labour, capital, entreprenurship and knowledge

Production management

Activities that managers do to help their firms create goods

Operations management

Transforming resources (including human resources) into goods AND services

Operations management in the goods sector

Focus on creating a good product

Operations management in the service sector

Focus on creating a good experience

Operations managers are responsible for

Operations planning - production process

• Relationship between inputs and outputs

• Inputs come together to form outputs

• Find everything at the lowest cost

Process manufacturing

physically/chemically changing materials e.g., boiling an egg

Continuous process

 long production runs turn out finished goods over time, uniform goods (soda)

Intermittent process

•  production run is short and the machines are changed frequently to make different products e.g., customized goods

  • Most processes now adays are intermittent

Outsourcing

• Canadian companies benefit from other countries doing this

  • Doesn't always mean out of country, just means outside of business

• Top reasons for doing it

  • Reduce/control costs

  • Gain access to resources

  • Free up internal resources

  • Improve business/customer focus

Will we see more or less outsourcing in the future

• Wage rate differences are getting smaller

  • Different labor rules in other countries

• Use of technology

• Shipping costs rising

Enterprise resource planning (ERP)

a system that allows information to be shared between various functions across a company to manage operations

Materials requirement planning (MRP)

Uses sales forecasts to ensure needed parts are available at the right time/place

Site selection

• Selecting a geographic location for a company's operations while considering:

  • Availability of resources and labor

  • Time to market (accessibility to transportation)

  • Proximity to suppliers

  • Proximity to customers

  • Government support

Facility layout

 Physical arrangement of resources (including people) in the production process

Assembly line layout

used for repetitive tasks

Process layout

frequently used in operations that serve different customers different needs

modular layout

can accommodate in design or customer demand

fixed position layout

a major feature of planning in scheduling work operations