What’s Happening?

 Reebok in the news http://online.wsj.com/article/SB100014240529702041

38204576598743479090706.html

http://www.collegehumor.com/videos/playlist/5927683/terribleproducts#3906040

Video Term Projects

Chapter 3 & 4 - The Marketing Environments

The Marketing Environment

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

Company

FOUR BASIC CATEGORIES

The Micro-environment

5

Total organization – many different functional areas

Interactive Flexible and creative

The microenvironment: Company

6

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

The microenvironment: Customers

The microenvironment: Types of Competition

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

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

9

AlliancesNetworksInformal partnershipsSuppliersVirtual corporations

The microenvironment: Collaborators

Company

UPSTREAM

DOWNSTREAM

PRIMARYACTIVITIES

Raw MaterialsSupplier

ComponentsSupplier

ServiceSupplier

Transportationcompany

Wholesaler

Retailer

Customers

The Value Chain – Exhibit 3.2

Macroenvironment

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

Consists of SIX broad categories

Exhibit 4-1: Macroenvironment influences on the marketing mix

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

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

Case: Zoom Airlines

Refer to pages 106 – 108 of your textbook.