Marketing Environment and SWOT Analysis

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the primary purpose of an environmental scan in marketing?

To improve marketing programs by understanding external factors (correct)

To develop pricing strategies

To predict future sales figures

To analyze customer preferences only

Which of the following elements is NOT part of an environmental scan?

Demographic forces

Technological forces

Marketing budget analysis (correct)

Competitive forces

What socio-cultural influence is likely to affect marketing approaches?

Advancements in packaging technology

Changes in postal delivery regulations

Variations in pricing models

Shifts in consumer lifestyles and values (correct)

How do economic environment changes impact consumer behavior?

They influence buying patterns based on disposable income Signup and view all the answers

Which technological development has become essential for current marketing practices?

Online e-commerce platforms Signup and view all the answers

Which of the following is an example of competitive forces in marketing?

Market entry of new competitors Signup and view all the answers

In a SWOT analysis, what does the external analysis primarily focus on?

Trends and forces impacting the organization Signup and view all the answers

What is one of the steps involved in performing an environmental scan?

Identifying regulatory changes Signup and view all the answers

What is the purpose of conducting an environmental scan?

To acquire information on external events for identifying trends Signup and view all the answers

How can understanding demographic forces benefit marketing efforts?

By ensuring marketing efforts are well placed and opportunities are not overlooked Signup and view all the answers

What significant demographic trend is noted in Canada according to the 2016 Census?

A significant growth of the population over the age of 65 Signup and view all the answers

What is a critical action to take based on SWOT analysis results?

Identifying critical factors to translate SWOT results into marketing actions Signup and view all the answers

Government agencies and marketers are particularly focused on which demographic change?

The needs of the aging market due to an increasing elderly population Signup and view all the answers

What is the duration that phone numbers remain in the Do Not Call List (DNCL) before needing to be re-registered?

Five years Signup and view all the answers

Which organization provides resources regarding communication devices in Canada?

Canadian Wireless Telecommunications Association (CWTA) Signup and view all the answers

The Personal Information Protection and Electronic Documents Act (PIPEDA) primarily deals with which aspect of data management?

Private-sector collection of personal data Signup and view all the answers

What does Canada’s anti-spam legislation (CASL) aim to protect consumers from?

Unwanted commercial electronic messages Signup and view all the answers

Which law limits federal government departments from collecting personal information unless it relates to their task?

Privacy Act Signup and view all the answers

What does online behavioural advertising primarily track?

Consumers' online browsing activities Signup and view all the answers

Which factor is NOT included in an environmental scan?

Personal preferences Signup and view all the answers

What is the role of the Digital Advertising Alliance of Canada (DAAC)?

To inform consumers about online behavioural advertising Signup and view all the answers

Which of the following best describes 'demographics'?

Statistical data about population characteristics Signup and view all the answers

Which generation is commonly referred to as Baby Boomers?

Born between 1946 and 1964 Signup and view all the answers

Which step is involved in conducting an environmental scan?

Collecting facts and identifying trends Signup and view all the answers

What type of data is classified under socio-cultural factors in an environmental scan?

Cultural values and consumer attitudes Signup and view all the answers

What demographic factor contributed significantly to Canada's population growth between 2018 and 2019?

Immigration and non-permanent residents Signup and view all the answers

What is the aim of clustering information during the environmental scanning process?

To summarize and organize data into usable facts Signup and view all the answers

Which of the following is NOT a significant change in household composition in Canada?

Decrease in same-sex couples Signup and view all the answers

Which of the following is a major component of online behavioural advertising?

Targeted ad placement based on user behavior Signup and view all the answers

What is a major social concern among Canadians regarding food consumption?

Focus on freshness and local sourcing Signup and view all the answers

Which of the following best describes the concept of ethical consumption in Canada?

Support for environmentally responsible practices Signup and view all the answers

Which factor primarily impacts consumer behavior during economic downturns?

Delays and cancellations of purchases Signup and view all the answers

In the context of macroeconomic forces, which of the following is NOT a key economic indicator?

Federal interest rates Signup and view all the answers

Which technological advancement is noted for potentially replacing existing products?

Artificial Intelligence Signup and view all the answers

What role does the Competition Bureau play in Canada?

To ensure market competitiveness Signup and view all the answers

How are Canadians' attitudes towards gender roles evolving in the marketplace?

Greater emphasis on gender-neutral advertising Signup and view all the answers

Which consumer trend is associated with increasing concern over personal health?

Increase in purchasing personal care items Signup and view all the answers

What is one consequence of the widespread use of the Internet in media consumption?

Increased showrooming behavior by consumers Signup and view all the answers

What is the primary driving force behind big-city growth in Canada?

Urban migration Signup and view all the answers

Which type of competition refers to products that compete directly with one another?

Direct competition Signup and view all the answers

Study Notes

The Marketing Environment

The marketing environment is made up of six environmental forces: Demographic, Regulatory, Socio-cultural, Competitive, Economic, and Technological.
A changing marketing environment requires a successful marketing program to adapt with these changes and identify new opportunities.

Situation Analysis (SWOT)

SWOT analysis involves taking stock of an organization’s marketing plans and the external forces and trends affecting it.
The four elements of SWOT are Strengths, Weaknesses, Opportunities, and Threats.
SWOT analysis helps to identify a critical factor that would translate into specific marketing actions.

Environmental Scan

An environmental scan involves continually acquiring information on events occurring outside of an organization to identify opportunities or threats to a business.
An Environmental scan can be the first step in creating a detailed SWOT analysis.

Demographic Forces

Aging Population
- Significant growth of the population over the age of 65, with projections indicating continued growth.
- Aging population presents opportunities for businesses in the health care industry, home support services, and personal care items.
Diverse Generations:
- Major generations include Baby Boomers, Generation X, and Generation Y (Millennials).
- Each generation has different needs and preferences, creating opportunities for targeted marketing strategies.
Big-City Growth:
- Fastest growing G7 country with a population increase of 1.4% in July 2019.
- Growth is boosted by immigration, with Western Canada experiencing rapid growth.
Ethnic Diversity:
- Canada is a multicultural country with a growing ethnic diversity.
- 83% of Canada's growth between 2018 and 2019 is due to the arrival of immigrants. This diverse population allows for various marketing opportunities.
World Markets:
- Canada ranks number 39 in the world for population.
- Opportunities for expanding foreign markets exist.
Changing Household Composition:
- The dominant household structure is now one-person households.
- Changes are driven by the aging population, economic independence, and increasing separation rates.
- There has been an increase in couples without children, common-law relationships, same-sex couples, and multi-generational families.

Socio-Cultural Factors

Media
- Widespread use of the internet on multiple devices, social media, and video watching create new marketing opportunities.
- Consumers are using various devices for online shopping, research, and communication.
Food Consumption:
- Consumers are increasingly concerned about what they eat.
- Focus on freshness, organic options, and local products has increased.
Attitude and Roles of Men and Women:
- Shifting gender roles and attitudes influence marketing strategies.
- Marketers are moving away from traditional gender norms and avoiding stereotypes.
Healthy Living:
- Consumer interest in maintaining and improving health is rising.
Ethical Consumption:
- Consumers are increasingly aware of environmental and social issues.
- They are more likely to recycle, buy used goods, and support companies with ethical practices.

Economic Forces

Macroeconomic Forces
- Key economic indicators include GDP, inflation, and the unemployment rate.
- Marketers adjust programs to maximize business results in response to economic upswings and downswings.
Microeconomic Forces
- Focuses on the supply and demand of goods and services as impacted by household and individual purchase decisions.

Technological Forces

Rapid Technological Advancement:
- Technological advancements impact the pace of change and create new opportunities for businesses.
- Technologies like artificial intelligence, automation, internet of things (IoT), and wearables are changing how consumers interact with products and services.
Consumer Demand for Seamless Experiences:
- Consumers expect consistent brand interactions across different devices.
- Marketers need to understand consumer behavior online.

Competitive Forces

Monitoring Competitor Activity:
- Marketers must be aware of competitor activity for products that directly or indirectly compete with their brands.
Types of Competition:
- Direct competition comes from brands selling the same or similar products.
- Indirect competition involves products or services that are not exactly the same but fulfill a similar need.

Regulatory Forces

The purpose of regulations is to protect consumers from unethical business practices, set standards of practice, and encourage fair competition.
Regulatory forces include the Competition Bureau, the Canadian Anti-Fraud Centre (CAFC), Advertising Standards Canada (ASC), Do Not Call List, and others.
Regulatory bodies shape the marketing industry by setting guidelines and enforcing compliance with ethical business practices.

Steps in an Environmental Scan

Gather Data and Identify Trends:
- Conduct thorough research to collect information on external events, and trends within the target market and relevant industries.
Analyze the External Trends:
- Analyze the data gathered to determine the impact of those trends on the business.
Set Business Objectives:
- Define objectives reflecting the company’s desired outcomes based on the analyzed trends.
Brainstorm, Evaluate, and Implement Ideas:
- Generate ideas to address the opportunities or threats identified during the analysis and implement them to achieve the company's objectives.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

This quiz covers essential concepts related to the marketing environment, including demographic, regulatory, socio-cultural, competitive, economic, and technological forces. Additionally, it explores SWOT analysis as a vital tool for evaluating organizational marketing plans and understanding external influences. Test your knowledge on how to adapt marketing strategies to changing environments.