Marketing Chp 3

• Continuously monitor both internal & external environments is important
• Listen to the consumer
• Rethink how businesses offer products and services to consumers
• Keep an eye on competitors

Marketing Environment Analysis Framework

• Includes Culture, Demographics, Social/Natural, Political/Legal, Economic, Technology

Microenvironmental Factors

• Includes Company, Corporate Partners, Competition

Company Capabilities

• Core competency satisfies customer needs
• Core competency includes knowledge, facilities, patents, technology, and people
• Core competencies applied to target markets and products

Competition

• Identify and analyze both direct and indirect competitors
• Know strengths and weaknesses in your company
• Competitive intelligence (CI) is used to collect and synthesize info

Corporate Partners

• Firms are part of alliances and few work in isolation
• Align with suppliers and corporate partners

Macroenvironmental Factors

• Includes Culture, Demographics, Social/Natural, Political/Legal, Economic, Technology
• Acronym CDSTEP

Culture

• Country culture versus regional subcultures

Demographics

• Characteristics of human populations and segments used to identify consumer markets

Generational Cohorts

• Classification starting in 1946
• Marketers position their products and services differently depending on which generational cohort they are targeting

Income

• Purchasing power is tied to income
• Statistics Canada tracks income
• Many middle-class families feel the decline in purchasing power in recent years
• The top 10% of Canadians have family income in excess of $226,000
• Canadians are classified in 3 distinct groups based on income and other factors such as background, education, and occupation: upper class, middle class, lower class

Demographics - Education

• Education is related to income, which determines spending power

Gender

• Male/female roles have been shifting
• Marketing has changed to reflect these shifts

Ethnicity

• The ethnic composition of Canada is changing
• 1/5 Canadians not born in Canada
• By 2030, population growth will be attributed to immigration

Technology

• Has impacted every aspect of marketing with new products, new forms of communication, new retail channels

Artificial Intelligence (AI)

• AI solutions rely on computer systems to perform tasks that require human intelligence, such as speech recognition, decision-making, or translations

Robotics

• Robotics applications typically perform work that previously was the responsibility of human workers

Internet of Things (IoT)

• IoT emerges when multiple "smart devices" with internet-connected sensors combine data to help both consumers and companies

Economic Situation

• Combined with inflation and interest rates, economic situation affects a firm's ability to market goods and services

Political/legal Environment

• Competition Act
• Consumer Packaging and Labelling Act
• Food and Drugs Act
• Access to Information Act
• Patent act
• North American Free Trade Agreement (NAFTA)
• Since the turn of the century, the government has enacted laws that promote both fair trade and competition by prohibiting items that would damage a competitive marketplace

Social and Natural Trends

• Shape consumers values
• These trends change over time
• Greener consumers, privacy concerns, time-poor society, health and wellness concerns and efficient distribution of food

Privacy Concerns

• Include loss of privacy, identity theft, do not call, do not email

Time-Poor Society

• In the majority of families, both parents work
• Consumers have many more choices regarding leisure time
• Many consumers multitask

Health and Wellness Concerns

• In Canada, 63.5% of adults are categorized as obese or overweight
• In the past 20 years, child obesity has doubled and teenage obesity has tripled
• CSPI has proposed guidelines for responsible food marketing to children
• Health and wellness concerns have spurred a number of mobile apps

Efficient Distribution of Food

• Food has always defined social trends that are central to people's lives and environments
• Trends associated with food and eating establish markets for diet-related products
• Issues with food waste, make up 28% of the garbage in municipal landfill sites, with Canada ranked 3rd for being the worst food waste offender in the world
• Food insecurity is another major issue and approximately 18% of Canadian households were found to be food insecure in 2022

Macro environmental Factors

• CDSTEP VS PESTEL
• CDSTEP covers culture, demographics, social/natural trends, technology, economic, political/legal

PESTEL - Economical:

• Include economy growth, exchange rates, inflation rates, and interest rates
• Affects how businesses operate and make decisions

PESTEL - Social:

• Cultural aspects, and trends in social factors, shared beliefs and attitudes of the population.
• Include can culture, health consciousness, population growth rate, career attitudes, age distribution

PESTEL - Technology:

• Includes R & D, automation, technology incentives, and rates of technology change

PESTEL - Environmental:

• Includes ecological and environmental aspects such as weather, climate, climate change
• It can especially affect industries such as tourism, farming, and insurance

PESTEL - Legal:

• Includes discrimination law, consumer law, antitrust law, employment law, and health and safety law
• Can affect how a company operates, its costs, and demand for is products

An analysis framework to monitor internal and external environments. It emphasizes listening to consumers and observing competitors. Key factors include microenvironmental and macroenvironmental influences like company capabilities, corporate partners, culture, and technology.