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Chapter 3 & 4 - The Marketing Environments

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The Marketing Environment

Consist of the internal (microenvironment) and the external environment (macroenvironment).

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Company

FOUR BASIC CATEGORIES

The Micro-environment

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Total organization – many different functional areas

Interactive Flexible and creative

The microenvironment: Company

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Business-to-consumerBusiness-to-businessBusiness –to-Institutional

The microenvironment: Customers

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The microenvironment: Competition

Four general types of competition: Price Quality Time (particular important in services) Location

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The microenvironment: Competition

Forces that impact an industry’s competitive environment)

Porter’s Competitive Forces:1. Supplier power2. Threat of substitutes3. Degree of rivalry4. Buying power of the customer5. Barriers to entry

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AlliancesNetworksInformal partnershipsSuppliersVirtual corporations

The microenvironment: Collaborators

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Company

UPSTREAM

DOWNSTREAM

PRIMARYACTIVITIES

Raw MaterialsSupplier

ComponentsSupplier

ServiceSupplier

Transportationcompany

Wholesaler

Retailer

Customers

The Value Chain – Exhibit 3.2

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Macroenvironment

1. Physical Environment2. Sociocultural Forces3. Demographic Forces4. Science and Technology5. Economic Forces6. Political and Legal Forces

Consists of SIX broad categories

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Exhibit 4-1: Macroenvironment influences on the marketing mix

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Macroenvironment: Demography

The Canadian Population1. www.populationconnection.org Canadian population growth attributed to immigration

Migration and Urbanization1. “Golden Horseshoe” – Ontario2. Montreal and the adjacent regions3. B.C.’s lower mainland and southern

Vancouver Island4. Calgary-Edmonton Corridor

• 51% of Canadianslive in one of thesefour areas;

• 80% of Canadians are urban dwellers

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Profile of the “Average Canadian Consumer”

The Changing Canadian Household

Single-Person and Single-Parent Households

Working WomenFamily and Household

IncomeA Multi-cultural

Population

Macroenvironment: Demography