Chapter 3

1
Chapter 3 4 - The Marketing Environments
2
The Marketing Environment

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

3
The Micro-environment
FOUR BASIC CATEGORIES
4
The microenvironment Company

• Total organization many different functional
  areas
• Interactive
• Flexible and creative

5
The microenvironment Customers

• Business-to-consumer
• Business-to-business
• Business to-Institutional

6
The microenvironment Competition

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

7
The microenvironment Competition (forces that
impact an industrys competitive environment)

• Porters Competitive Forces
• 1. Supplier power
• 2. Threat of substitutes
• 3. Degree of rivalry
• 4. Buying power of the customer
• 5. Barriers to entry

8
The microenvironment Collaborators

• Alliances
• Networks
• Informal partnerships
• Suppliers
• Virtual corporations

9
The Value Chain - Exhibit 3-2
DOWNSTREAM
PRIMARY ACTIVITIES
UPSTREAM
C u s t o m e r s
Company
10
Macroenvironment
Consists of SIX broad categories

1. Physical Environment
2. Sociocultural Forces
3. Demographic Forces
4. Science and Technology
5. Economic Forces
6. Political and Legal Forces

11
Exhibit 4-1 Macroenvironment influences on the
marketing mix
12
MACROENVIRONMENTDemography

• The Canadian Population
• www.populationconnection.org
• Canadian population growth attributed to
  immigration
• Migration and Urbanization
• Golden Horseshoe Ontario
• Montreal and the adjacent regions
• B.C.s lower mainland and southern Vancouver
  Island
• Calgary-Edmonton Corridor

• 51 of Canadianslive in one of thesefour areas
  
• 80 of Canadians are urban dwellers

13
MACROENVIRONMENTDemography

• 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