1 copyright © 2015 pearson canada inc. marketing: an introduction armstrong, kotler, trifts,...

1 Copyright © 2015 Pearson Canada Inc.

Marketing: An IntroductionArmstrong, Kotler, Trifts, Buchwitz, Gaudet

5th Canadian Edition

With DUANE WEAVERWith DUANE WEAVER

CHAPTER 4

Analyzing the Marketing Environment

with Duane Weaver


Outline• Environmental Forces• MicroEnvironment• MacroEnvironment• Macro: Demographics• Generational Groups• Canadian Impacts


Environmental Forces

• Forces that affect firm’s success • Microenvironment: • Forces with direct impact to the company• Internal & External

• Macroenvironment: • External forces with direct impact across industries


Environment Impact on Decisions

MicroMicroenvironment• Stakeholders (aka: publics): • Groups with interest in or impact on

a firm’s ability to achieve objectives• Strategic decisions must consider

impact on all stakeholders

The Company

Suppliers

Marketing Intermediaries

Customers

Competitors

Publics


Environment Impact on DecisionsMacroMacroenvironmental Forces: • external & non controllable• Main sources of opportunities and threats• Strategic decisions stem from developing trends



•Macro: Demographics

• The study of human populations in terms of size, density, location, age, gender, race, occupation and other statistics.

• Marketers track changing age and family structures, geographic population shifts, educational characteristics and population diversity.



Three largest generational groups:

Baby Boomers

• 1947-1966• 9.8 million• Wealthy but hard

hit by recession

Generation X

• 1967-1976• 7 million• Highly educated• Experientially

driven

Millennialsor Generation Y

• 1977-2000• 10.4 million• Tech savvy• Personally centered


Just so you Know

When it celebrated its110th year of operations in 2013, Harley Davidson ® was simultaneously confronted with an inevitable fork in the road. It’s target market, male baby boomers, were slowly but surely aging away from profitability. While a significant number of Gen X and millennials would be there to carry the torch, HD ® saw the looming threat of the demographic shift.

Faced with the dilemma of introducing a new product for a new market, while still maintaining a current product for a current market – all the while protecting the brand that got you there in the first place – how would you advise the motorcycle company to proceed?

Visit www.harley-davidson.com to see how it approaches generational marketing

Hog Wild Generational Marketing


Environment Impact on DecisionsCanadian Impacts

• Canadian family/household are changing:• Growing market of “non-traditional” households• Growing “crowded nest” syndrome• Fewer families have children• More dual-income families


Geographic shifts in population:• Growth rates across Canada are not uniform• Rural to urban migration continues• Buying habits differ by region• Growth in telecommuting market



• Better educated, white-collar population:• Increased demand for higher quality• Increased understanding of value• Creates demand in different products



• Increasing diversity:• Large and growing visible minority market• Growth in recognized disabilities• Acceptance of LGBT and gay marriages



• Factors that affect spending• Changes in income • Consumption frenzy, record personal debt• Economic crisis leading to consumer frugality• Value marketing is key to success

• Changes in spending patterns• Engel’s laws note that consumers at different income levels have different

spending patterns



Economic Changes

• Changes in income• 1980’s – consumption frenzy.• 1990’s – “squeezed consumer.”• 2000’s – value marketing.

• Income distribution• Upper class – major market for

luxury goods.• Middle class – careful but has

the good life.• Working class – sticks to the

basics.• Underclass – counts every

penny first.


Technological Environment

• Technology advances • Creating new markets and opportunities• Increasing obsolescence • Accelerating customer needs• Resulting in constantly evolving

regulations


Political Environment

Regulatory Trends:• Evolving laws influence organizations• Marketing activities face:• Increasing legislation• Changing government agency enforcement• Society’s emphasis on ethics and socially responsible behavior


Cultural Environment

• Standard acceptable belief system that affects a society’s basic values• Core beliefs slow to change• Secondary beliefs are more open to change

CORE

Secondary


Cultural Environment

• Society’s major cultural views are expressed in people’s views of:• Themselves• Others• Organizations• Society• Nature• The Universe


Responding to the Marketing Environment

Reactive Proactive• Wait for change; then react • Anticipate change; act now

• Missed opportunities • Seized opportunities

• Damage from threats • Mitigate impact of threats

1 copyright © 2015 pearson canada inc. marketing: an introduction armstrong, kotler, trifts,...

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