Chapter 4 - Chapter 4 Analyzing the Marketing Environment...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 4: Analyzing the Marketing Environment Ii. Macroenvironment Demographic Environment . Demography: Study of human populations in terms of size, density, location, age, gender, race, occupation . Baby Boomers: 9.8 million Canadians born post WWII - mid 1960's. (1947 - 1966) o Wealthy (50% of world's income) . Generation X: 7 million Canadians born between 1967 - 1976 "birth dearth" . Millennials/Generation Y: 10.4 million children of Baby Boomers, born between 1977 - 2000 Economic Environment . Factors that affect consumer buying power/ spending patterns . Industrial economics: rich markets for various goods . Subsistence economies: consume most own agricultural/industrial output (offer few market opportunities) . Developing economies: offer outstanding marketing opportunities for right kinds of products . Engel's laws: Ernst Engel (a century ago) - differences in how people shift their spending across food, housing, transportation, health care, and other goods & services categories as family income rises
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Natural Environment . Natural resources needed as inputs by marketers or that are affected by marketing activities . Must note trends in natural environment: shortages of raw materials, increased pollution, increased government intervention, environmental sustainability (developing strategies and practices that create a world economy that the planet can support indefinitely), Technological Environment . Forces that create new technologies, creating new product and market opportunities Political and Social Environment . Laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society . Public policy - developed by governments; sets of laws and regulations that limit business for the good of society as a whole . Business Legislation - laws covering issues such as competition, fair trade practices, environmental protection, product safety, truth in advertising, consumer privacy, packaging and labelling, pricing . Enacted to protect companies from each other, protect consumers from unfair business practices, protect the interests of society against unrestrained business behaviour . Increased Emphasis on Ethics and Socially Responsible Actions, Behaviour, Cause-Related Marketing (to exercise social responsibility and build more positive images; has becoming a primary form of corporate giving)
Image of page 2
Cultural Environment . Institutions and other forces that affect society's basic values, perceptions, preferences, and behaviours . Persistence of Cultural Values, Shifts in Secondary Cultural Values, People's View of Others, People's Views of Organizations, People's views of society, People's views of nature, People's views of the universe Responding to the Marketing Environment . Uncontrollable element to which they must react and adapt; passively accept environment, do not try to change; analyze environmental forces and design strategies to help avoid threats and take advantage of opportunities proactive stance 1. Describe the environmental forces that affect the company's ability to serve its customers 2. Explain how changes in the demographic and economic environments
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern