1 chapter 3 & 4 - the marketing environments. 2 the marketing environment consist of the...
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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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The Micro-environment
Company
FOUR BASIC CATEGORIES
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The microenvironment: Company
Total organization – many different functional areas
Interactive Flexible and creative
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The microenvironment: Customers
Business-to-consumer Business-to-business Business –to-Institutional
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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 power
2. Threat of substitutes
3. Degree of rivalry
4. Buying power of the customer
5. Barriers to entry
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The microenvironment: Collaborators
Alliances Networks Informal partnerships Suppliers Virtual corporations
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Company
The Value Chain - Exhibit 3-2
UPSTREAM
DOWNSTREAM
PRIMARYACTIVITIES
Raw MaterialsSupplier
ComponentsSupplier
ServiceSupplier
Transportationcompany
Wholesaler
Retailer
Customers
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Macroenvironment
1. Physical Environment
2. Sociocultural Forces
3. Demographic Forces
4. Science and Technology
5. Economic Forces
6. 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 Population– www.populationconnection.org– Canadian population growth attributed to immigration
Migration and Urbanization1. “Golden Horseshoe” – Ontario
2. Montreal and the adjacent regions
3. B.C.’s lower mainland and southern Vancouver Island
4. Calgary-Edmonton Corridor
•51% of Canadianslive in one of thesefour areas;
•80% of Canadians are urban dwellers
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MACROENVIRONMENT:Demography
Profile of the “Average Canadian Consumer”
The Changing Canadian Household
Single-Person and Single-Parent Households
Working Women Family and Household
Income A Multi-cultural Population